FairPoint Communications 2011 Annual Report Download - page 45
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Table of Contents
(2) Total access line equivalents includes voice access lines and HSD lines, which include DSL, wireless broadband, cable modem and fiber-to-the-
premises.
(3) Wholesale access lines include residential and business resale lines and unbundled network element platform (“UNEP”) lines.
(4) The balance sheet data reflected at January 24, 2011 is representative of the Successor Company after application of the Plan and the adoption of fresh
start accounting.
(5) Excludes restricted cash of $25.1 million, $4.1 million, $4.0 million, $68.5 million and $0 at December 31, 2011, 2010, 2009, 2008 and 2007 and
$86.8 million at January 24, 2011.
(6) Long-term debt at December 31, 2010 and 2009 is included in Liabilities subject to compromise (see note 2 to the consolidated financial statements for
further information).
The following discussion should be read in conjunction with our financial statements and the notes thereto included elsewhere in this Annual Report.
The following discussion includes certain forward-looking statements. For a discussion of important factors, including the continuing development of our
business, actions of regulatory authorities and competitors and other factors which could cause actual results to differ materially from the results referred to in
the forward-looking statements, see “Item 1A. — Risk Factors” in this Annual Report.
Overview
We are a leading provider of communications services in rural and small urban communities, offering an array of services, including HSD, Internet
access, data transport, voice, video and other broadband enabled product offerings. We operate in 18 states with approximately 1.3 million access line
equivalents (including voice access lines and HSD lines, which include DSL, wireless broadband, cable modem and fiber-to-the-premises) in service as of
December 31, 2011.
We were incorporated in Delaware in February 1991 for the purpose of acquiring and operating incumbent telephone companies in rural and small
urban markets. Many of our telephone companies have served their respective communities for over 80 years.
Access lines have historically been an important element of our business. Over the past several years, communications companies, including FairPoint,
have experienced a decline in access lines due to increased competition, including competition from CLECs, wireless carriers and cable television operators,
increased availability of alternative communications services, including wireless and VoIP, and challenging economic conditions. While voice access lines are
expected to continue to decline, we expect to offset a portion of this lost revenue with growth in special access, HSD and other broadband service revenue as we
continue to build out our network to customers who did not previously have access to such products and to offer more competitive services to existing
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