FairPoint Communications 2009 Annual Report Download - page 53

Table of Contents
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We have an agreement with an outside service provider to perform a portion of our billing functions. If our service provider is unable to adequately
perform such services or if it experiences a significant degradation or failure with respect to such services, it could result in disruptions in our billing,
which could harm our business, financial condition, results of operations and liquidity. Furthermore, if the agreement with our service provider is
terminated for any reason, we may be unable to find an alternative service provider in a timely manner or on terms acceptable to us, and may be unable
to perform the services provided ourselves resulting in billing disruptions and/or increased costs to us.

To be successful, we will need to continue to provide our customers reliable service over our expanded network. Some of the risks to our network
and infrastructure include:
•physical damage to access lines;
•widespread power surges or outages;
•software defects in critical systems; and
•disruptions beyond our control.
Disruptions may cause interruptions in service or reduced capacity for customers, either of which could cause us to lose customers and incur
expenses.
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Our provision of long distance and bandwidth services are dependent on underlying agreements with other carriers that provide us with transport
and termination services. These agreements are based, in part, on our estimate of future supply and demand and may contain minimum volume
commitments. If we overestimate demand, we may be forced to pay for services we do not need. If we underestimate demand, we may need to acquire
additional capacity on a short-term basis at unfavorable prices, assuming additional capacity is available. If additional capacity is not available, we will
not be able to meet this demand. In addition, if we cannot meet any minimum volume commitments, we may be subject to underutilization charges,
termination charges, or rate increases that may adversely affect our business, financial condition, results of operations and liquidity.

Our success depends upon the talents and efforts of our senior management team. None of our senior executives, with the exception of David L.
Hauser, our Chairman and Chief Executive Officer, are employed pursuant to an employment agreement. Mr. Hauser's current employment agreement
expires on June 30, 2012. The loss of any member of our senior management team, due to retirement or otherwise, and the inability to attract and retain
highly qualified technical and management personnel in the future, could have a material adverse effect on our business, financial condition, results of
operations and liquidity.
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