Frontier Communications 2012 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:
•The effects of greater than anticipated competition which could require us to develop 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 voice customers that we cannot offset with increases in broadband
subscribers and sales of other products and services;
•The effects of competition from cable, wireless and other wireline carriers;
•Our ability to maintain relationships with customers, employees or suppliers;
•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 any unfavorable outcome with respect to any current or future legal, governmental or
regulatory proceedings, audits or disputes;
•The effects of changes in the availability of federal and state universal funding to us and our
competitors;
•Our ability to adjust successfully to changes in the communications industry and to implement strategies
for growth;
•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;
•The effects of changes in accounting policies or practices adopted voluntarily or as required by
generally accepted accounting principles or regulations;
•Our ability to effectively manage our operations, operating expenses and capital expenditures, and to
repay, reduce or refinance our debt;
•The effects of changes in both general and local economic conditions on the markets that we serve,
which can affect demand for our products and services, customer purchasing decisions, collectability of
revenues and required levels of capital expenditures related to new construction of residences and
businesses;
•The effects of technological changes and competition on our capital expenditures, product and service
offerings and measurement of speeds and capacity, including the lack of assurance that our network
improvements will be sufficient to meet or exceed the capabilities and quality of competing networks;
•The effects of increased medical, pension and postemployment expenses and related funding
requirements;
30
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES