Frontier Communications 2014 Annual Report Download - page 5

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Verizon and is 54% FiOSenabled. Subject to regulatory approval, the transaction is expected to
close in the first half of 2016.
Communications Services
As of December 31, 2014, we are the nation’s fourth largest Incumbent Local Exchange Carrier
(ILEC), with 3.5 million customers, 2.4 million broadband subscribers and 17,400 employees. Following
consummation of the Connecticut Acquisition, we now operate as an ILEC in 28 states.
We conduct business with both residential and business customers, and we provide the “last mile”
of communications services to customers in these markets. During 2014, our customer revenue was
$4,253 million, including residential revenue of $2,092 million and business revenue of $2,161 million.
At December 31, 2014, we had 2,373,900 broadband subscribers and 586,600 video subscribers. Our
services and products include:
•data and Internet services
– wireline broadband services
– data transmission services (e.g., DS1, DS3, OCNX, Ethernet, dedicated Internet Protocol)
– wireless broadband services
– computer security and premium technical support (i.e., Frontier Secure)
– residential and commercial Voice over Internet Protocol (VoIP) service
•voice services
•access services
•other services
– FiOSvideo services
– Frontier TV powered by U-verse
– satellite video services
– customer premise equipment
– directories
Company Strategies
The key elements of our strategy are as follows:
Lead with Broadband. We focus on broadband as the core growth component of our service
offering, either bundled with our voice and/or video services, or on a standalone basis. During 2014,
we added approximately 507,200 net broadband subscribers, which include 398,600 broadband
subscribers attributable to the Connecticut Acquisition, bringing our total number of broadband
subscribers to 2,373,900 as of December 31, 2014. The increase in broadband subscribers contributed
to our improved revenue performance.
We continue to expand and improve broadband availability and speed in our markets and view this
investment as an opportunity to attract and retain a greater number of customers and increase average
revenue per residential and business customer. These capital expenditures include enhancing the
existing outside plant by expanding fiber-based infrastructure throughout our network, upgrading
network hardware and expanding transport capacity of our middle-mile and data backbone.
As of December 31, 2014, approximately 92% of the households throughout our territories had
access to our wireline broadband products. See “Network Architecture and Technology” for a table that
summarizes our broadband availability to the households throughout the Company’s territories. In
addition, we have committed to federal and state regulatory authorities to expand broadband
availability in certain areas and for expansion of broadband in unserved and underserved areas. See
“Regulatory Environment—Regulation of our business.”
4
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES