Frontier Communications 2014 Annual Report Download - page 7

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acquire Verizon’s wireline operations in California, Florida and Texas. We consider transactions that
we believe present opportunities consistent with our overall business strategy, that complement or
expand our product offerings or extend our geographic scope or customer base. We will continue to
adhere to our selective criteria in any acquisition analysis.
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 premium value. 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.
Revenue Generation
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 our own and third party video services;
and (5) sales of customer premise equipment.
Data and Internet services. We offer a wide range of broadband services to our residential,
commercial and carrier customers. Residential services include fiber-to-the-home and fiber-to-the-node
broadband, video and VoIP products, as well as traditional copper-based broadband 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 also provide premium technical support and customer service to other
companies on a contract basis.
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.
Voice services. We provide basic wireline services to residential and business customers in our
service areas. We also provide data based VoIP services and enhanced services to our customers by
offering a number of unified messaging services, including call forwarding, conference calling, caller
identification, voicemail and call waiting, all of which are capable of being managed via an Internet
Portal. 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
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES