Frontier Communications 2012 Annual Report Download - page 8

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2012 2011
As of or for the year ended
December 31,
Total Customer Metrics:
Total Customers . .................................................. 3,173,169 3,413,666
Total Customer Revenue (in 000’s) . ................................ $4,435,436 $4,623,902
Average monthly total revenue per Customer. ....................... $ 127.32 $ 121.88
Average monthly total Customer revenue per Customer .............. $ 112.68 $ 107.50
Business Customer Metrics:
Customers......................................................... 286,106 309,900
Revenue (in 000’s) ................................................ $2,317,212 $2,353,375
Average monthly business revenue per Customer .................... $ 650.63 $ 601.14
Residential Customer Metrics:
Customers......................................................... 2,887,063 3,103,766
Revenue (in 000’s) ................................................ $2,118,224 $2,270,527
Average monthly residential revenue per Customer(1) ................ $ 58.03 $ 57.40
Customer monthly churn . . ......................................... 1.62% 1.69%
(1) Calculation excludes the Mohave Cellular Limited Partnership.
During 2012, we lost 240,500 customers, as compared to a loss of 375,400 customers in 2011. Also,
during 2012, the average monthly total customer revenue per customer increased $5.18, or 5%, over 2011. We
lost 216,700 residential customers and 23,800 business customers during the year ended December 31, 2012, or
7% on an annual basis, as compared to 341,400 residential customers and 33,900 business customers lost
during the year ended December 31, 2011, or 10% on an annual basis. Average monthly residential revenue per
customer increased $0.63 to $58.03 during 2012 as compared to 2011. This increase is due to the additional
monthly subscriber line charges to our residential customers which were implemented in the third quarter of
2012, as permitted by the Order as well as increased product penetration and rationalized pricing. Economic
conditions and/or increasing competition could make it more difficult to sell our bundled service offerings, and
cause us to increase our promotions and/or lower our prices for our products and services, which would
adversely affect our revenue, profitability and cash flows.
During 2012, we added 23,400 new broadband subscribers, net, as compared to 45,200 during 2011. We
believe that the lower customer activations were due to the final systems conversion during 2012 and the
delayed roll-out of marketing promotions in the second half of 2012. At December 31, 2012, we had 1,787,600
broadband subscribers. Throughout our properties, we offer a video product through DISH and, in addition, we
offer fiber optic video services in three states. We gained 43,600 video subscribers, net during 2012, excluding
the impact of unbundling DirecTV customers from our bills. At December 31, 2012, we had 346,600 video
customers.
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES