Frontier Communications 2010 Annual Report Download - page 31

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This annual report on Form 10-K contains forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from those expressed or implied in the
statements. Statements that are not historical facts are forward-looking statements made pursuant to the safe
harbor provisions of The Private Securities Litigation Reform Act of 1995. Words such as “believe,”
“anticipate,” “expect” and similar expressions are intended to identify forward-looking statements. Forward-
looking statements (including oral representations) are only predictions or statements of current plans, which
we review continuously. Forward-looking statements may differ from actual future results due to, but not
limited to, and our future results may be materially affected by, potential risks or uncertainties. You should
understand that it is not possible to predict or identify all potential risks or uncertainties. We note the following
as a partial list:
•Our ability to successfully integrate the operations of the Acquired Business into Frontier’s existing
operations;
•The risk that the growth opportunities and cost synergies from the Transaction may not be fully realized
or may take longer to realize than expected;
•Our indemnity obligation to Verizon for taxes which may be imposed upon them as a result of changes
in ownership of our stock may discourage, delay or prevent a third party from acquiring control of us
during the two-year period ending July 2012 in a transaction that stockholders might consider favorable;
•The effects of increased expenses incurred due to activities related to the Transaction and the integration
of the Acquired Business;
•Our ability to maintain relationships with customers, employees or suppliers;
•The effects of greater than anticipated competition requiring new pricing, marketing strategies or new
product or service offerings and the risk that we will not respond on a timely or profitable basis;
•Reductions in the number of our access lines that cannot be offset by increases in HSI subscribers and
sales of other products and services;
•The effects of ongoing changes in the regulation of the communications industry as a result of federal
and state legislation and regulation, or changes in the enforcement or interpretation of such legislation
and regulation;
•The effects of changes in the availability of federal and state universal funding to us and our
competitors;
•The effects of competition from cable, wireless and other wireline carriers;
•Our ability to adjust successfully to changes in the communications industry and to implement strategies
for growth;
•Adverse changes in the credit markets or in the ratings given to our debt securities by nationally
accredited ratings organizations, which could limit or restrict the availability, or increase the cost, of
financing;
•Continued reductions in switched access revenues as a result of regulation, competition or technology
substitutions;
•Our ability to effectively manage service quality in our territories and meet mandated service quality
metrics;
•Our ability to successfully introduce new product offerings, including our ability to offer bundled
service packages on terms that are both profitable to us and attractive to customers;
•Changes in accounting policies or practices adopted voluntarily or as required by generally accepted
accounting principles or regulations;
30
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES