Frontier Communications 2011 Annual Report Download - page 35

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
32
formerly provided by third-party service providers to the Acquired Business and (3) by achieving improved efficiencies and
more favorable rates with third-party vendors.
We estimate that our annualized cost savings will reach approximately $650 million by the end of 2012. Our 2011 savings
from our targeted initiatives list (which includes, but is not limited to, network cost savings, contractor reductions,
cancellation or reduction of vendor services, benefit changes and real estate savings) was approximately $156 million, or
$248 million on an annualized basis, and combined with the savings achieved in 2010 of approximately $152 million, or $304
million on an annualized basis, equates to an annualized cost savings run rate of approximately $552 million as of the end of
2011.
The foregoing future cost savings are based on our estimates and assumptions that, although we consider them reasonable, are
inherently uncertain. Significant business, economic, competitive and regulatory uncertainties and contingencies, all of which
are difficult to predict and many of which are beyond our control, may affect these expected cost savings. See “Forward
Looking Statements” above. As a result, there can be no assurance that these or any other future cost savings or synergies will
actually be realized.