FairPoint Communications 2011 Annual Report Download - page 26

Table of Contents
Local Government Authorizations
We may be required to obtain from municipal authorities permits for street opening and construction or operating franchises to install and expand
facilities in certain communities. If we enter into the video markets, municipal franchises may be required for us to operate as a cable television provider. Some
of these franchises may require the payment of franchise fees. We have historically obtained municipal franchises as required. In some areas, we will not need
to obtain permits or franchises because the subcontractors or electric utilities with which we will have contracts already possess the requisite authorizations to
construct or expand our networks. In association with the Recovery Act, there may be an increase in our requirements associated with road move requests
pursuant to new funding for roads. It is not certain whether funding will be available to us for this potential obligation.
Environmental Regulations
Like all other local telephone companies, our 34 LEC subsidiaries are subject to federal, state and local laws and regulations governing the use, storage,
disposal of and exposure to hazardous materials, the release of pollutants into the environment and the remediation of contamination. As an owner of real
property, we could be subject to environmental laws that impose liability for the entire cost of cleanup at contaminated sites, regardless of fault or the
lawfulness of the activity that resulted in contamination. We believe, however, that our operations are in substantial compliance with applicable environmental
laws and regulations.
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We make available free of charge on our website, www.fairpoint.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and all amendments to such reports as soon as reasonably practical after we file such material with, or furnish such material to, the
SEC. Our filings with the SEC are available to the public over the Internet at the SEC’s website at , or at the SEC’s public reference room located
at 100 F Street, N.E., Washington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room.
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Any of the following risks could materially adversely affect our business, consolidated financial condition, results of operations, liquidity and/or the
market price of our Common Stock. The risks described below are not the only risks facing us. Additional risks and uncertainties not currently known to us
or that we currently deem to be immaterial may also materially and adversely affect our business operations.
Risks Related to our Common Stock and Our Substantial Indebtedness
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The market price of our Common Stock may fluctuate widely as a result of various factors, including but not limited to, period-to-period fluctuations in
our operating results, the volume of sales of our Common Stock, dilution, developments in the communications industry, the failure of securities analysts to
cover our Common Stock, changes in financial estimates by securities analysts, short interest in our Common Stock, competitive factors, regulatory
developments, economic and other external factors, general market conditions and market conditions affecting the stock of communications companies in
general. Communications companies have, in the past, experienced extreme volatility in the trading prices and volumes of their securities, which has often been
unrelated to operating performance. High levels of market volatility may have a significant adverse effect on the market price of our Common Stock. In
addition, in the past, securities class action litigation has often been instituted against companies following periods of volatility in their stock prices. This type
of litigation could result in substantial costs and divert management’s attention and resources, which could have a material adverse impact on our business,
financial condition, results of operations, liquidity and/or the market price of our Common Stock.
In addition, shares of our Common Stock were listed on the NASDAQ effective as of January 25, 2011. There has been a public market for our
Common Stock for only a short period of time. An active, liquid and orderly market for our Common Stock may not be sustained, which could depress the
market price of our Common Stock. An inactive market may also impair our ability to raise capital.
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