Frontier Communications 2013 Annual Report Download - page 6

In July 2010, we acquired the defined assets and liabilities of the local exchange business and related
landline activities of Verizon Communications Inc. (the 2010 Transaction) in 14 states (the Acquired
Territories), including Internet access and long distance services and broadband video provided to designated
customers in the Acquired Territories (which we refer to as the 2010 Acquired Business).
Services
We offer a broad portfolio of high-quality communications services for residential and business customers
in each of our markets. Our product portfolio includes voice services, Internet access, broadband-enabled
services and video services. We offer these services both on a standalone basis and as bundled packages that
are purposely designed to simplify customer purchasing decisions and to provide the customer with pricing
discounts. Periodically, we offer selective incentives and promotions to influence customers to purchase or
retain certain services. We are staffed locally with skilled technicians and supervisors, which enables us to
provide an array of communications services to meet our customers’ needs. Our call center operations and field
technicians are staffed with 100% U.S.-based employees.
Generation of Revenue
We generate revenue primarily by providing: (1) data and Internet services and wireless data services; (2)
basic local and long distance voice wireline services to residential and business customers in our service areas;
(3) network access to interexchange carriers for origination and termination of long distance voice and data
traffic; (4) sales of third party and owned video services; and (5) sales of customer premise equipment.
Data and Internet services. We offer a wide range of wireline and satellite broadband services to our
residential, commercial and carrier customers. Residential services include broadband, dial up Internet, portal
and e-mail products. Commercial services include Ethernet, Dedicated Internet, Multiprotocol Label Switching
(MPLS), Time Division Multiplexing (TDM) data transport services and optical transport services. These
services are all supported by a 24/7 help desk and an advanced network operations center. Such services are
generally offered on a contract basis and the service is billed on a fixed monthly recurring charge basis. Data
and Internet services are typically billed in advance.
We also offer our Frontier Secure suite of products aimed at managing the digital experience for our
customers and designed to provide value and simplicity to meet customers’ ever-changing needs. Frontier
Secure offers products and services to protect key aspects of digital life, including computer security, cloud
backup and sharing, identity protection, equipment insurance and 24/7 premium U.S.-based technical support.
These products and services are sold nationwide directly to consumers and small businesses, and wholesale
through strategic partnerships under either a private brand or the Frontier Secure brand.
We offer wireless broadband services (using unlicensed WiFi spectrum) in select markets utilizing
networks that we own or operate. Long-term contracts are generally billed in advance on an annual or semi-
annual basis. End-user subscribers are generally billed in advance on a monthly recurring basis and businesses,
colleges and universities are billed on a monthly recurring basis for a fixed number of users. Hourly, daily and
weekly casual end-users are billed by credit card at the time of use.
Local and long distance voice services. We provide basic wireline services to residential and business
customers in our service areas. Our service areas are generally less densely populated than the primary service
areas of the largest ILECs. We also provide enhanced services to our customers by offering a number of calling
features, including call forwarding, conference calling, caller identification, voicemail and call waiting. All of
these local services are billed monthly in advance. Long distance network service to and from points outside
our operating properties are provided by interconnection with the facilities of interexchange carriers. Our long
distance services are billed either as unlimited/fixed number of minutes in advance or on a per minute-of-use
basis.
We also offer packages of communications services. These packages permit customers to bundle their
basic wireline service with their choice of enhanced, long distance, video and Internet services.
We are continuing our efforts to increase the penetration of our enhanced services which produce revenue
with higher operating margins due to the relatively low marginal operating costs necessary to offer such
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES