Frontier Communications’ Three-Year Investment In New York Tops $326 Million

Frontier Communications (NASDAQ:FTR) recently announced that the company’s three years of capital expenditures in New York hit a total of $326.1 million, including approximately $80 million in 2013.

In addition to Frontier’s own capital expenditures, many Frontier markets in New York will benefit from additional support totaling $8.1 million from the Federal Communications Commission’s Connect America Fund (CAF). CAF funding will allow Frontier to accelerate broadband availability and increase speeds in some of its very rural New York markets. Frontier offers broadband, digital phone service, satellite television service, Frontier satellite broadband, FTR Energy Services, customer premises equipment (telephone systems, support for commercial businesses and e-911 applications), Ethernet, Dedicated Internet Access, commercial cloud based voice solutions, data center services, and web security/data back-up/personal identity protection and more through Frontier Secure.

Frontier invested $326.1 million of its own capital during the past three years, with significant funding supporting engineering initiatives to increase broadband access and improve network infrastructure across the company’s 38-county New York territory. This investment is vital to continuing economic development, increasing opportunities for consumers, and supporting all types and sizes of businesses in the state.

“The impact of our investments in New York is felt throughout the communities we serve,” said Kevin Smith, Senior Vice President and General Manager of Frontier’s New York operations. “Our powerful network, driven by our dedicated teams who are residents and experts about the needs of their communities, is delivering solid benefits to our customers and shareholders. Our team is hitting their stride in New York, and there is more to come.”

Frontier’s operational and community-related highlights for New York in 2013 include:
  • Equipment upgrades to 13 Central New York switching offices and 97 remote locations. As a result, at year-end 2013, Frontier was able to offer faster broadband speeds to essentially 493,000 New York households.
  • Expansion of Frontier’s Ethernet network within the company’s rural territories, providing customers access for circuits up to 1 Gbps. Customers located in Fulton, Montgomery, Hamilton, Jefferson, Lewis, Oneida, Chenango, Madison, Delaware and Clinton counties will benefit from the build-out, which is anticipated to be completed by mid-2014.
  • For Upstate New York, the awarding of a New York State Broadband Grant to Frontier and Hamilton County to upgrade the data transport backbone between Gloversville and Eagle Bay, with Phase 1 of transport and equipment upgrades completed in 2013. As a result, Frontier is able to offer speeds up to 40 Mbps to residents and businesses working out of the enhanced sites. Phase 2 will expand coverage to 17 additional remote switches within the county, with anticipated completion in mid-2015.
  • The completion of a major upgrade to Frontier’s Layer 2 Metro-Ethernet network in the Rochester market. This upgrade ensures capacity to existing and future customers requesting 5 to 100 Mbps services.

Phil Yawman, Vice President and General Manager of Frontier’s greater Rochester operations, noted that the significant expansion of Frontier’s network in Rochester was in response to increased demand for advanced services. “We are continuing an aggressive schedule of state-of-the-art enhancements to our network to ensure our residential and commercial customers benefit from the latest technology and services.”

In Rochester, Frontier also invested significant funding for IT software upgrades and engineering projects that benefit the entire company and 27-state customer base. “Frontier has a significant presence in the Rochester market, home to many of our corporate functions,” stated Yawman. “For example, Frontier’s Internet Help Desk, Payroll, Training, Operator Services, Network Operations Center and Engineering are headquartered in Rochester and serve employees and customers throughout New York and also throughout Frontier’s coast-to-coast territories. Rochester is a critical center within Frontier’s operations.”

All Frontier services are installed and maintained by the company's 100% U.S.-based work force. More than 1,400 Frontier employees serve customers in the greater Rochester area, and 2,320 employees serve throughout New York. “We’re proud of our commitment to the Empire State and very excited to highlight our recent network enhancements and capital investments,” said Smith.

About Frontier Communications

Frontier Communications Corporation (NASDAQ: FTR) offers broadband, voice, satellite video, wireless Internet data access, data security solutions, bundled offerings, specialized bundles for residential customers, small businesses and home offices and advanced communications for medium and large businesses in 27 states. Frontier's approximately 13,650 employees are based entirely in the United States. More information is available at  www.frontier.com.

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