Frontier Communications 2012 Annual Report Download - page 23

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Our Internet services could be adversely affected and we may be subject to increased costs and claims in
connection with Internet and systems security and malicious Internet practices.
We use encryption and authentication technology licensed from third parties to provide secure
transmission of confidential information, including our business data and customer information. We also
rely on employees in our network operations centers, data centers, call centers and retail stores to follow our
procedures when handling such information. Any unauthorized access, computer viruses, accidental or
intentional release of confidential information or other disruptions could result in increased costs, customer
dissatisfaction leading to loss of customers and revenues, and fines and other liabilities.
In addition, our Company or our customers using our network to access the Internet may become victim to
malicious and abusive Internet activities, including unsolicited mass advertising (“spam”), peer-to-peer file
sharing, distribution of viruses, worms and other destructive or disruptive software. These activities could
adversely affect our network, result in excessive call volume at our call centers and damage our or our
customers’ equipment and data.
Despite security measures and business continuity plans, the Company’s information technology networks
and infrastructure may be vulnerable to damage, disruptions or shutdowns due to attack by hackers or breaches,
employee error or malfeasance, power outages, computer viruses, telecommunication or utility failures, systems
failures, natural disasters or other catastrophic events. Any such events could result in legal claims or
proceedings, liability or penalties under privacy laws, disruption in operations, misappropriation of sensitive
data, damage to the Company’s reputation and costly response measures, which could adversely affect the
Company’s business. There can be no assurance that such disruptions or misappropriations and the resulting
repercussions will not be material to our results of operations, financial condition or cash flows.
Item 1B. Unresolved Staff Comments
None.
22
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES