FairPoint Communications 2006 Annual Report Download - page 6

with current software. As a result of our historic capital investments, we believe that our network infrastructure requires predictable capital
expenditures and allows us to implement certain broadband enabled services with minimal incremental cost. As of December 31, 2006, approximately
99% of our exchanges were capable of providing broadband services and approximately 92% of our access lines are high speed data capable.
·  As a result of our advanced network, switching and routing infrastructure, we believe that we offer the
only comprehensive suite of communications services in our markets, including local and long distance voice, data and Internet services. In addition,
we offer enhanced features such as caller identification, call waiting, call forwarding, teleconferencing, video conferencing and voicemail. We also offer
broadband communications solutions to most of our customers primarily through DSL technology.
·  We have an experienced management team that has demonstrated its ability to grow our rural
telephone business over the past decade. Our senior management team has an average of 23 years of industry experience. Our management team has
successfully integrated 35 business acquisitions since 1993, improving revenues and cash flow significantly while enhancing service quality and
broadening service offerings.
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The key elements of our strategy are to:
· We are focused on increasing our revenues by introducing innovative product offerings and marketing strategies
for enhanced and ancillary services to meet the growing needs of our customers. Our long standing relationships with our customers have helped us to
successfully cross-sell broadband and value-added services, such as DSL, long distance, Internet dial-up, voicemail and other services. We will
continue to evaluate and implement technologies that will allow us to offer new products and services and improve contribution per customer.
·  . We have achieved significant operating efficiencies by applying our operational,
regulatory, marketing and management expertise to our acquired businesses. We intend to continue to increase our operating efficiencies by
consolidating various administrative functions and implementing best practices across our company.
· We believe that our service driven customer relationships and long-standing local presence lead to high levels of
customer satisfaction and increased demand for enhanced and ancillary services. We continue to build long-term relationships with our customers by
actively participating in the communities we serve and by offering an array of communications services and quality customer care.
· We believe that our acquisition strategy has been successful because of our ability to integrate acquisitions
and improve operating efficiencies in the businesses we acquire. Our management team has consistently produced strong operating cash flow
improvements in our acquired businesses. We will continue to evaluate and pursue acquisitions which provide the opportunity to enhance our revenues
and cash flows. However, our ability to pursue acquisitions is limited by the Merger Agreement.
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We offer a broad portfolio of high-quality communications services for residential and business customers in each of the markets in which we operate.
We have a long history of operating in our markets and have a recognized identity within each of our service areas. Our companies are locally staffed, which
enables us to efficiently and reliably provide an array of communications services to meet our customer needs. These include services traditionally associated
with local telephone companies, as well as other
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