Frontier Communications 2012 Annual Report Download - page 46

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REVENUE
($ in thousands) Amount
$ Increase
(Decrease)
% Increase
(Decrease) Amount
$ Increase
(Decrease)
% Increase
(Decrease) Amount
2012 2011 2010
Local and long distance services. . . . . $2,230,890 $(220,421) (9%) $2,451,311 $ 653,929 36% $1,797,382
Data and internet services . . . . . . . . . . . 1,823,010 (19,923) (1%) 1,842,933 607,337 49% 1,235,596
Other . . . . . . . . . . . . . . ................ 381,536 51,878 16% 329,658 62,736 24% 266,922
Customer revenue. . . ................ 4,435,436 (188,466) (4%) 4,623,902 1,324,002 40% 3,299,900
Switched access and subsidy . . . . . . . . 576,417 (42,724) (7%) 619,141 121,366 24% 497,775
Total Revenue . ................ $5,011,853 $(231,190) (4%) $5,243,043 $1,445,368 38% $3,797,675
Local and Long Distance Services
Local and long distance services revenue for 2012 decreased $220.4 million, or 9%, to $2,230.9 million, as
compared with 2011 primarily due to the continued loss of voice customers and, to a lesser extent, decreases in
private line services and feature packages, partially offset by increased local charges, effective with the third
quarter of 2012, to business and residential end users to the extent permitted by the Order. Local and enhanced
services revenue for 2012 decreased $157.0 million, or 8%, to $1,813.8 million, primarily due to the continued
loss of voice customers and, to a lesser extent, decreases in private line services and feature packages, partially
offset by increased local charges, effective with the third quarter of 2012, to business and residential end users
to the extent permitted by the Order. Long distance services revenue for 2012 decreased $63.4 million, or 13%,
to $417.1 million, primarily due to a decrease in the number of long distance customers using our bundled
service offerings, lower minutes of use and a lower average revenue per minute of use.
Local and long distance services revenue for 2011 increased $653.9 million, or 36%, to $2,451.3 million,
as compared with 2010. Local and long distance services revenue for 2011 increased $836.1 million as a result
of the additional six months of revenue in 2011 attributable to the Acquired Business. Excluding the additional
six months of revenue related to the Acquired Business, local and long distance services revenue decreased
$182.2 million, or 10%, as compared with 2010, primarily due to the continued loss of voice customers and, to
a lesser extent, decreases in private line services and feature packages. Local and enhanced services revenue for
2011 increased $527.6 million, or 37%, to $1,970.8 million, as compared with 2010. Local and enhanced
services revenue for 2011 increased $670.6 million as a result of the additional six months of revenue in 2011
attributable to the Acquired Business. Excluding the additional revenue related to the Acquired Business, local
and enhanced services revenue decreased $143.0 million, primarily due to the continued loss of voice
customers and, to a lesser extent, decreases in private line services and feature packages. Long distance services
revenue for 2011 increased $126.3 million, or 36%, to $480.5 million, as compared with 2010. Long distance
services revenue for 2011 increased $165.5 million as a result of the additional six months of revenue in 2011
attributable to the Acquired Business. Excluding the additional revenue related to the Acquired Business, long
distance services revenue decreased $39.2 million as compared with 2010, primarily due to a decrease in the
number of long distance customers using our bundled service offerings, lower minutes of use and a lower
average revenue per minute of use.
Data and Internet Services
Data and Internet services revenue for 2012 decreased $19.9 million, or 1%, to $1,823.0 million, as
compared with 2011. Data services revenue decreased $7.2 million to $838.4 million in 2012, as compared with
2011, primarily due to higher promotional discounts and customer credits. As of December 31, 2012, the
number of the Company’s broadband subscribers increased by 23,400, or 1%, since December 31, 2011. Data
and Internet services also includes nonswitched access revenue from data transmission services to other carriers
and high-volume commercial customers with dedicated high-capacity Internet and ethernet circuits.
Nonswitched access revenue decreased $12.7 million to $984.6 million in 2012, as compared with 2011,
due to lower monthly recurring charges and settlements of disputes with carriers.
45
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES