FairPoint Communications 2013 Annual Report Download - page 28

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A network disruption could cause delays or interruptions of service, which could cause us to lose customers.
To be successful, we will need to continue to provide our customers with reliable and uninterrupted service over our expanded
network. Disruptions in our service could occur as a result of events that are beyond our control. Some of the risks to our network
and infrastructure include:
• physical damage to our transmission network including poles, cable and access lines;
• widespread power surges or outages;
• software defects in critical systems;
• capacity limitations resulting from changes in our customers' usage patterns; and
• damage intentionally inflicted upon the network or our other infrastructure.
From time to time, in the ordinary course of business, we have experienced and in the future may experience short disruptions
in our service due to factors such as cable damage, inclement weather and service failures of our third-party service providers.
We could experience more significant disruptions in the future. In addition, certain portions of our network may lack adequate
redundancy to allow for expedient recovery of service to affected customers. Disruptions may cause interruptions in service or
reduced capacity for customers, either of which could cause us to lose customers and incur expenses, which could have a material
adverse impact on our business, financial condition, results of operations, liquidity and/or the market price of our outstanding
securities.
Any failure or inadequacy of our IT infrastructure could harm our business.
A major failure or inadequacy of our IT infrastructure could harm our business. The capacity, reliability and security of our
internal IT hardware and software infrastructure are important to the operation of our current and future business, which would
suffer in the event of major system failures. Our inability to expand or upgrade our IT hardware and software infrastructure could
have adverse consequences, which could include the delayed implementation of new service offerings, increased acquisition
integration costs, service or billing interruptions, the issuance of service quality credits, and the diversion of development resources.
If any of the foregoing events occur with respect to our IT infrastructure, our business, financial condition, results of operations,
liquidity and/or the market price of our outstanding securities could be materially adversely affected.
A cyber-attack that bypasses our IT and/or network security systems causing an IT and/or network security breach may lead
to unauthorized use or disabling of our network, theft of customer data, unauthorized use or publication of our intellectual
property and/or confidential business information and could harm our competitive position or otherwise adversely affect our
business.
Attempts by others to gain unauthorized access to organizations' IT systems or network elements are becoming more
sophisticated and are sometimes successful. These attempts include covertly introducing malware to companies' computers and
networks, impersonating authorized users, or "hacking" into systems. We seek to detect and investigate all security incidents and
to prevent their recurrence, but, in some cases, we might be unaware of an incident or its magnitude and effect. Significant network
security failures could result in the theft, loss, damage, unauthorized use or publication of our intellectual property and/or
confidential business information; the theft, loss, damage, unauthorized use or publication of our customers' personally identifiable
information, intellectual property and/or confidential business information; the unauthorized use or disabling of our network
elements; or damage to our reputation among customers and the public. These consequences could harm our competitive position,
subject us to additional regulatory scrutiny, expose us to litigation, reduce the value of our investment in research and development
and other strategic initiatives or otherwise adversely affect our business. To the extent that any security breach results in inappropriate
disclosure of our customers' or licensees' confidential information, we may incur liability as a result.