Frontier Communications 2012 Annual Report Download - page 5

– computer security (i.e., Frontier Secure)
– commercial VoIP service
•local and long distance voice services
– local voice services
– enhanced services (e.g., voicemail, call waiting)
– long distance network services
•access services
•video services
– direct broadcast satellite utilizing DISH
– terrestrial utilizing fiber to the home
•sales of customer premise equipment
Company Strategies
The key elements of our strategy are as follows:
Enhance customer loyalty through local engagement. Our strategy includes engaging our markets at the
local level to ensure that we have a locally customer-driven sales and service focus that differentiates us from
our competitors. Our markets are operated by local managers responsible for the customer experience, as well
as the financial results, in those markets. We invest in infrastructure improvements and enhancements each
year, recognizing that the economic livelihood of the communities we serve will affect opportunities to grow
the business. We therefore have a vested interest in the economic development of the communities we serve.
We are involved in these communities to create a competitive advantage through long-term customer loyalty.
We are committed to providing best-in-class service throughout our markets and, by doing so, we expect to
maximize retention of current customers and gain new customers.
Increase revenue per customer. We continue to apply the sales and marketing practices that we have
historically employed throughout our markets, including the sale of voice, data and video services as bundled
packages and the use of promotions and incentives to drive market share. We believe these marketing strategies
yield increased revenue per customer, strong customer relationships and improved customer retention. We tailor
our services to the needs of our business and residential customers in the markets we serve and continually
evaluate the introduction of new and complimentary products and services. We are increasing broadband
availability to our customer base through innovative packages and promotions, and we plan to improve
subscription rates for broadband services. We provide direct broadcast satellite services from DISH in all of our
markets and fiber optic video services in parts of three states. We have implemented several growth initiatives,
including launching new products and services, such as wireless broadband, satellite video and broadband
products, Internet advertising and “Frontier Secure” computer security and technical support. We will continue
to focus on growing those products and services and plan to offer new ones in the future.
Expand broadband footprint. We are concentrating on broadband as the core component of our service
offering and growth. Consequently, we have earmarked capital expenditures for the expansion and
improvement of broadband availability and speeds in our markets and view this expansion as an opportunity
to retain a greater number of customers and increase average revenue per customer. These capital expenditures
include enhancing the existing outside plant by pushing fiber deeper into the network, enhancing transport and
expanding the capability of our data backbone.
As of December 31, 2012, approximately 88% of the households throughout the Company’s territories had
access to our wireline broadband products with speeds of at least 1 Mbps. See “Network Architecture and
Technology” for a table that summarizes our broadband availability to the households throughout the
Company’s territories at speeds in excess of 1 Mbps, 3 Mbps, 4 Mbps, 6 Mbps, 12 Mbps and 20 Mbps for the
total Company. In addition, we have committed to federal and state regulatory authorities to expand broadband
availability in certain areas of the Acquired Territories. See “—Regulatory Environment—Regulation of our
4
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES