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Employee FAQs

Business Questions

1. When does the transaction close? Will there be any change in day to day operations leading

up to the close?

The transaction is expected to close in the first half of 2016. It is not expected that any day to

day operations will change leading up to the close, except that some employees will participate

in specific conversion activities (such as training on Frontier systems) prior to close.

2. How does Frontier set company goals?

Typically in the last quarter of the year, senior management sets company goals for the coming

year. The Company goals are called the “3Ps”:

People Product Profit

Frontier believes that with a high performing, customer-focused workforce, and a strong suite of Products, the Company can deliver Profits for our shareholders and maintain a thriving workforce with good jobs. These goals are called the “3Ps” for short and all employees know them. Employee-wide 3P town-halls are held in the first half of 2016. At these meetings, we review how we performed in the previous year and what the 3P goals are for the New Year. There is an open discussion and question and answer period so everyone understands the 3Ps, the realities of our business and how we can take ownership to beat the competition.

3. Is Frontier a growth company? What are their plans to continue to build out FiOS? What

are the plans to invest in copper plant/HSI?

Frontier is dedicated to healthy continuous growth. Frontier will look at FiOS expansion on a case-by case basis. We have found in past acquisitions that employees have valuable insight into the local network and can be an important resource in identifying opportunities to expand products like FiOS, or Ethernet for business customers.

For copper plant/HSI, we plan to conduct a thorough evaluation of the network. We are also looking at opportunities like the Connect America funding (CAF) and CASF funding in CA to upgrade and expand broadband in the rural markets, as we have done in existing Frontier markets.

4. Will Frontier utilize Verizon Wireless’ VoiceLink technology?

Frontier is focused on providing high quality landline service to our customers. No decisions

have been made regarding the use of a product such as VoiceLink.

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5. Will Frontier continue to provide FiOS Video services long-term? What will the

customer experience be for the Frontier video customers (IMG, Mobile App, channel

lineup, etc.)

Yes. Our goal is to substantially duplicate the customer experience with FiOS today. We

successfully did so in several locations acquired from Verizon in 2010. There will likely be some

differences and we are working on identifying those differences now.

6. Will transitioning to Frontier require equipment change for customers?

Customer premise equipment will remain in place when Frontier takes over the current Verizon

systems.

7. Does Frontier have contracts with Big Box entities or Retail Local Presence Centers?

Yes, Frontier has a small number of company owned and third party owned retail

centers. However retail distribution plays a very small part in the go to market strategy for our

products and services; in most markets, retail centers are not part of this strategy.

8. Will Frontier honor our current customers bundle price or integrate Frontier bundle

prices? How will we integrate the processes?

As Frontier has done in prior cutovers, existing customers in the acquired properties will initially be mapped over to Frontier systems and will retain their current products, pricing and applicable promotional rates. Our goal is to make this a seamless transaction; however, there may be minor variations due to the application of taxes and other charges.

If a Customer chooses to make a change following the cutover, the Customer can select a product from the Frontier Day 1 product list (there is no forced migration to Frontier Day 1 products).

9. Will we be able to start moving to Frontier systems and structures before the actual

close date to maintain excellent customer service?

No. Until the actual close occurs, Verizon systems will continue to be utilized. About 60 days

prior to close, training on Frontier’s systems and processes will begin.

Business and Training Questions

1. Frontier recently announced they were expanding a call center in Rochester, NY with

350 jobs as technical positions handling internet customers. Does this mean that

Frontier plans to close some of our FSC/EVRC facilities?

Frontier has no current plans to close any existing Verizon Centers. This is subject to change as business needs change.

2. What systems will transfer and/or be new to us? What can we expect?

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We are not anticipating any of the existing Verizon systems to be transferred to Frontier. Transferring Verizon employees will all be trained on Frontier systems and processes. Frontier’s systems are similar to those being utilized at Verizon.

3. What training will be provided and when, to ensure a smooth transition to Frontier?

When will FSC training on Frontier processes/systems occur? What is the timing?

Frontier values the importance of properly training Verizon employees so they can effectively perform the essential duties of their roles.

Transferring employees will receive training on Frontier systems and processes. The timing of the training will be determined later this year. The amount of training that can be conducted prior to close is being reviewed by Verizon and Frontier.

4. What does the CSSC training look like – what CSSC systems will go to Frontier – how

many observations are supervisors required to conduct?

Residential training (CSSC) is approximately 2-4 weeks in duration depending on call types being trained. As none of the Verizon systems will be transferred to Frontier, transferring Verizon employees will be trained on Frontier systems, processes and customer service expectations.

Many Contact Center Leaders in Frontier observe calls. Currently, in the Residential Teams, coaches generally conduct 5-10 observations per employee per month. This frequency can vary depending upon a variety of factors.

HR Questions

Organization Structure

1. What is the organizational structure? Do you see any significant changes to what our

organization looks like today? Will California, Florida and Texas be combined to form

one new region?

The Frontier organization is currently divided into six (6) Regions; East, West, Central, Mid-West,

National, Mid-Atlantic. With the pending acquisition of California, Florida, and Texas, Frontier is

in the process of defining the best structure for its future organization.

The Frontier organization is currently divided into six (6) Regions; East, West, Central, Mid-West,

National, Mid-Atlantic.

Organization structures can differ by function. For field operations, each region has a Regional

President. Reporting into the Regional Presidents are the State Vice Presidents. Reporting into

the State Vice Presidents are a number of General Managers who are accountable for their

respective Local Area Markets (LAM’s). Reporting into the General Managers are the Technical

Supervisors who are accountable for providing leadership, guidance and counsel to the hourly

Technicians.

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2. Will reporting structures be changed?

At this time, it is expected that reporting structures will remain unchanged. Decisions to make

changes to reporting structures would be shared with employees as soon as reasonably possible.

3. Will any employees be asked to relocate?

At this time, it is not expected that employees will be asked to relocate. In the event that this

situation changes, information will be shared with employees as soon as reasonably possible.

4. Frontier has a facility in Allen, TX. Will Verizon employees in the Texas market be asked

to relocate to the Allen facility post-closing?

There are no plans to re-locate transferring Verizon employees to the Allen, TX facility.

5. Will there be large scale reductions of non-union employees post transaction closing? Employees are under the impression that in past transactions, Frontier re-organized and reduced headcount within the first year. Will staff support groups such as Finance, Marketing, HR, Labor, etc. be reduced post-closing and work picked up by existing Frontier employees? In the 2010 transaction, Verizon established a separate entity (“SpinCo”) which was spun off

from Verizon and simultaneously merged with and into Frontier. Because Verizon established

Spinco as a separate entity that could operate as a stand-alone business, it had some corporate

support functions and infrastructure that were duplicative of Frontier’s existing support

functions and infrastructure. As a result, following the merger, Frontier realized synergy savings

through leveraging its existing network and IT infrastructure and its corporate administrative

functions.

In this transaction, Frontier is not purchasing a separate entity but rather portions of Verizon’s

existing business without the full corporate support functions and infrastructure of a stand-alone

business. As such, the level of duplicative infrastructure is less than that of the 2010 transaction.

At this time, there are no plans for large scale reductions in force. However, as with all

acquisitions, where synergy opportunities are identified, appropriate steps will be taken to

ensure employees who would be impacted by any reductions in-force would be treated with

respect and consistent with our company values to care for employees.

6. What will the severance plan be post one year of closing? Are transferring Verizon employees eligible?

Non-Union Employees

Frontier’s current severance program is comprised of three (3) primary criteria: Years of Service,

Career Band, and Salary. Frontier severance benefits will be based on a substantial replication

of Verizon’s severance program for one year after close in accordance with the transaction

agreement between Frontier and Verizon. For force reductions that occur after one year from

close, Frontier will provide transferring Verizon employees the severance benefits that Frontier

provides to its similarly situated employees.

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Union Employees

Severance benefits will be provided in accordance with the applicable collective bargaining

agreement in effect at the time of severance.

7. Will employees be asked to re-apply for their jobs?

No. Verizon employees scheduled to transfer to Frontier will not be required to reapply for their

current jobs. We look forward to welcoming Verizon employees to Frontier!

8. Will Frontier train the transferred Verizon employees in all aspects of their job

responsibilities that they are not presently trained in? Will this training take place prior

to closing so that employees are knowledgeable on day one post-closing? Do we have

an estimated timeframe for training to occur?

Frontier values the importance of properly training Verizon employees so they can effectively

perform the essential duties of their roles.

The timing of the training will be determined later this year. Should opportunities exist that

allow Frontier to train transferring employees in advance of the close, Frontier will endeavor to

provide the necessary training.

9. If I retire from Verizon just prior to the closing of the merger, would Frontier be able to offer

me a job post-close on a full-time, part-time, or contractor basis?

For the first six months after the deal close, Frontier is prohibited from hiring anyone as an

employee or retaining anyone as an independent contractor who has voluntarily terminated,

left, or retired from Verizon within the preceding six months without Verizon’s consent to the

hire or retention as an independent contractor.

Following the end of the six-month period, employees who retire from Verizon can apply for

work with Frontier and be considered along with all other applicants. All applicants will be

evaluated based on their qualifications at that time. In compliance with applicable law, there

can be no preference based on retirement from Verizon. If hired to a management position,

employees will be treated as complete new hires without any bridging of prior service and

subject to all waiting periods and current Frontier non-union benefits. If hired into a bargaining

unit position, employment will be governed by the collective bargaining agreement. Bridging of

prior service will apply only as provided in the applicable pension plan and/or collective

bargaining agreement.

Please note that if you retire before the deal close, your eligibility for retiree medical benefits

would be determined under Verizon’s plans. If you retire after the deal close, your eligibility for

retiree medical benefits would be determined under Frontier’s plan. See question 10 under the

“Benefits” section below for more information on Frontier’s retiree medical plan.

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10. Does Frontier provide vehicles at a 1 to 1 ratio?

Installation & Maintenance and many Central Office technicians will be assigned a vehicle for

their work purposes. Vehicle assignments in Construction and Engineering vary based on

employees’ primary job duties and work assignments.

11. Will the Service Fulfillment Centers who handled order fallouts be closed and their

work handled differently?

It is too early to determine what work would remain within each site or move. As part of the

process of conversion, we will evaluate all work being done in each new site as well as employee

job descriptions. Decisions concerning how work will be mapped going forward will be shared

in a timely manner.

Employee Experience

1. How would you describe the Frontier employee culture?

Our culture is all about staying laser-focused on our customers’ needs, and serving and

delighting our customers with our great products and services. We strive to enhance the digital

lives and livelihoods of our customers every day. We firmly believe that delighting customers is

the best way to win new customers from the competition.

Open communication is an important foundation of Frontier’s culture. Open communication

between all levels of the company is how we operate. We encourage employees to escalate

issues or problems that they need help solving or are not getting fast enough attention for the

customer. Our General Managers are critical leaders in our company as they are the “face of

Frontier” in their respective Local Area Markets.

Lastly, we work as a team; we strive to win together through direct involvement in our local

communities. We look for all employees to bring their unique perspectives “to the table,” work

hard to deliver on our customer commitments, communicate effectively with one another and

take the initiative to be innovative in solving issues and coming up with new ideas.

2. How does the transaction benefit Verizon employees who are transitioning over?

When you walk into a Frontier facility or office you can “feel” that it is a fast-paced operation

and the words “I can help”, “customer,” and “I will own it” come up a lot. This is because our

culture is all about serving our customers – delighting our customers with our great products and

services.

At Frontier, we strive to live and work by our company’s mission and values daily. For our

employees, this means helping Frontier to be the leader in providing communication services to

residential and business customers in our footprint. In order for us to do that, our employees,

who are the face of our company in the communities where they live and work, are called upon

to take the initiative, be team players, and help us as a company be innovative and work towards

continuous improvement. Employees are asked and enabled to help make decisions at local

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levels to better serve the customers they touch and help us shape changes so that we can

continue to exceed customer’s needs and delight them with our service. Employees are part of

the team that helps make Frontier a great place to work.

3. Will Frontier honor the existing collective bargaining agreements?

Yes. Frontier will honor the existing collective bargaining agreements.

4. Will my service from Verizon be carried over to Frontier?

Yes. Employees transferring directly over to Frontier as part of this acquisition will carry their

recognized Verizon service over to Frontier; there will be no break in service.

5. How are employee performance goals set?

The 3Ps are the basis for every employee’s performance goals. Each employee meets with their

Supervisor early on in the year to set down in writing performance goals and measures of

success. Employee/Supervisors then meet frequently to calibrate performance and adjust goals

and expectations as needed, ensuring active two-way dialogue, including a more formalized mid-

year and end of year review process. Human Resources reviews all performance reviews and

assists in career planning with employees.

6. How does Frontier communicate to employees?

We believe open, two-way communication is very important to our success at every level of the company. Our CEO, Dan McCarthy sets the tone through direct communications with employees, and he expects all leaders to have a true “open door” policy. Managers at all levels are expected to communicate frequently with employees so everyone is focused on the right priorities to achieve our company goals. The Link, the internal company Web portal provides the following information about the company, including: Our company values and 3Ps Employee contact directory News articles about amazing things employees are doing in their communities Newsletters for each Region and Department Human Resources policies and resources Training Central: A portal for online courses and resources to build your skills Meet Frontier Veterans: A directory of veteran employees

You will have access to this portal on day one after the transaction closes.

7. What is Frontier’s PTO policy?

Union Employees

For union employees, paid time off (including vacation time, personal days, etc.) will continue to

accrue and be administered in accordance with the collective bargaining agreement.

Non-Union Employees

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Non-union employees will accrue paid time off under Frontier’s Paid Time-Off (PTO) Policy after

the deal close (taking into account service before the deal close).

PTO applies to all regular employees’ schedules which are not covered by collective bargaining

agreements working 20 or more hours per week. Temporary, co-op or summer/student hires

and part-time employees scheduled to work less than 20 hours per week are not eligible for PTO

days or holiday pay.

Each employee will accrue PTO days on a monthly basis, earning one-twelfth of his/her total

allotment on the 16th of each month. Below are the current monthly accruals and annual

allotments by length of service:

Length of Service (As of date of hire)

Monthly Accrual

Annual Allocation

Less than 5 years 1.667 days 20 days or 160 hours

5 years but fewer than 10 years

1.833 days 22 days or 176 hours

10 years but fewer than 15 years

2.0 days 24 days or 192 hours

15 years but fewer than 20 years

2.167 days 26 days or 208 hours

20 years but fewer than 25 years

2.333 days 28 days or 224 hours

25 years or more 2.5 days 30 days or 240 hours

*Length of Service is determined by adding your recognized length of service at Verizon to your length of service at Frontier

8. Will my vacation days be carried over post close?

Union Employees

Vacation carryover for union represented employees is governed by the employee’s respective

collective bargaining agreement (CBA). The amount of vacation carryover permitted under the

terms and conditions of the CBA will be honored.

Non-Union Employees

Non-union employees will carry over their pre-close unused vacation when they transfer to

Frontier. Thereafter, employees are not permitted to carryover unused PTO from one calendar

year to the next. Certain states have laws that may supersede the corporate policy.

9. Does Frontier offer flexible employment options?

Frontier is an innovative employer that aims to attract and retain the best talent. We offer the following options, which are generally dependent upon the position held and determined on a case-by-case basis:

Telecommuting: Part-time basis (one or two days a week work from home)

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Work-from-home: Works from home all 40 hours a week, but on some frequency comes into the office for meetings and dials in for meetings via conference calls (generally this is only offered in our call centers)

Part-time: Part-time schedule 4/10s: Some employees work 40 hours per week in 4 days instead of 5 days

All of these work arrangements require approval from the department head and a satisfactory or better level of performance. Additionally, for union employees, these arrangements are subject to any applicable provision negotiated in the collective bargaining agreement.

10. What will happen to our employee discounts? What employee discounts does Frontier offer?

Union Employees Frontier will follow the terms of the collective bargaining agreement for union employees. Frontier is researching non-negotiated discounts received by unionized employees and will be providing further information on this subject. Non Union Employees Employee discounts for non-union employees are currently being reviewed. Frontier does offer several employee discount programs, including service and product discounts.

11. Will Frontier offer a tuition assistance program similar to Verizon?

Union Employees

Frontier will honor the terms of the collective bargaining agreement and will provide and

administer tuition assistance in accordance with the applicable collective bargaining agreement.

Non Union Employees

For non-union employees, active full-time and certain part-time regular employees will be eligible to participate in Frontier’s Tuition Assistance Program (TAP) after one year of service (which will take into account your recognized Verizon service). Under Frontier’s Tuition Assistance Program, 50% of the costs of eligible expenses are reimbursable with an annual cap of $5,500. The area of study needs to be relevant to a career at Frontier.

12. Will Frontier offer discounts on personal Verizon cell phone plans?

Frontier Communications and Verizon Wireless have a cellular (wireless) phone service

arrangement that provides savings for employees. The discount rate could change based on

volume or other factors.

13. What are Frontier’s rewards and recognition plans? Does Frontier offer rewards similar to

the Warehouse Run and President’s Club?

Yes, Frontier does have a President’s Club award program. Frontier is awaiting further

information on the Warehouse Run program.

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14. Does Frontier support and/or have Employee Resource Groups (ERGs)?

No. Frontier does not currently have Employee Resource Groups.

Benefits

1. When will Frontier provide their benefits information to employees prior to the closing?

As with all acquisitions, there are a multitude of administrative activities that need to be

completed prior to finalizing the details of employee benefit plans. Once plan details are

finalized, Frontier will proactively communicate this information. Further details on timeline will

come closer to close.

2. Will there be any changes to my Health & Welfare benefits?

During the transition period before the deal closes, your benefits will be maintained by Verizon. After the deal closes, your benefits will transition to Frontier: Union Employees Employees’ benefits will continue to be handled based on the terms of their collective bargaining agreement Non Union Employees Frontier will provide non-union employees the health & welfare benefits that Frontier provides to its similarly-situated employees. More information about benefits will be available in the coming months.

3. Who are Frontier’s Health & Welfare benefit administrators?

Frontier currently uses the following administrators:

Anthem Blue Cross Blue Shield for medical insurance administration

Express Scripts for prescription drug administration

MetLife for dental insurance administration

VSP for vision insurance administration

Securian Life for life insurance plans

Zurich for AD&D insurance plans

Prudential for disability and FMLA administration

4. What happens to my flexible spending account elections post-close?

Both Healthcare and Dependent Care FSA account balances (and employee contributions per paycheck) will roll to the Frontier platform. Participants will receive instructions on how to submit claims and receive reimbursements post close for 2016 eligible expenses that were not reimbursed before closing.

5. What happens to my Health Reimbursement Account?

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HRA account balances will roll to the Frontier platform. Participants will receive instructions on how to submit claims post-closing.

6. What will happen to my 401(k) Account? What happens to my interest in the Verizon stock

fund plan?

Your 401(k) account balance including the Verizon stock will transfer to a Frontier 401(k) Plan. After the Verizon stock transfers into the Frontier 401(k) plan it will be frozen to new contributions. Withdrawals will continue to be permitted from the frozen Verizon stock fund. Future dividends will be invested in the participants’ current investment elections.

7. What 401(k) options does Frontier offer? Is there a company match? What third-

party handles the administration of the 401(k)?

Fidelity is the administrator of the Frontier Communications 401(k) Savings Plan (the “Savings Plan”). The Savings Plan currently offers 31 investment options plus a brokerage link account. More information will be provided on investment options prior to close. For union employees, Frontier will abide by the terms for matching contributions under the applicable collective bargaining agreement. The company match will be invested in the participants’ current investment elections. For non-union employees, Frontier currently matches 50% of deferrals up to 8% of compensation for a payroll period.

8. Will our pensions be in a pension fund and protected from bankruptcy or other financial

difficulties that Frontier may face or will they be part of their general fund?

Yes, your pension benefits will be funded in a pension trust that is separate from corporate and

general funds of Frontier. Verizon will transfer pension assets to the Frontier pension trust

consistent with legal requirements, and in addition the parties have agreed to a potential

additional transfer of funds that would be used to fund the Frontier pension trust.

As required by federal law, pension plans are funded by trusts that are protected from corporate

bankruptcy and are insured by the Pension Benefit Guarantee Corporation, a federal agency.

The Frontier Communications Pension Plan has been in existence since 1944 and provides

pension benefits for over 20,000 participants.

9. Does Frontier’s current pension plan provide for lump sum payouts? Is it anticipated that

post closure, the pension plan will continue to provide for lump sum payouts?

The Frontier Communications Pension Plan allows for lump sum pension payments.

For union-represented employees, Frontier will abide by the terms of the applicable collective

bargaining agreement governing lump sum pension distributions.

The agreement between Frontier and Verizon requires that stand-alone pension plans set up by

Frontier for transferred former Verizon employees be identical in all material respects to the

corresponding Verizon pension plan, which includes distribution options such as lump sums. In

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addition, federal law protects the availability of distribution options for pension benefits that

have accrued and Frontier has no current intention to eliminate lump sum pension payments.

10. What medical benefits does Frontier provide to Retirees?

If you retire before the deal closes, your eligibility for retiree medical benefits will be provided by

Verizon’s plans. The benefits under the Verizon plans are subject to potential change in the

future, including possible termination of such benefits. If you retire after the deal closes, your

eligibility for retiree medical benefits will be determined under Frontier’s plan, as follows:

Union Employees

Frontier will abide by the applicable terms of the collectively bargained agreements. Any retiree

medical benefits required by in the collective bargained agreements will be continued.

Non Union Employees

Frontier does not offer retiree medical benefits to non-union employees.

However, Frontier is obligated to provide retiree benefits to certain former GTE employees who

were within 5 years of becoming eligible to retire with retiree welfare benefits as of 5-18-1999.

Therefore, except for this group of former GTE employees, transferred Verizon non-union

employees retiring after the deal closes will not have retiree medical benefits, just like other

Frontier non-union employees.

11. What happens if I am on disability leave at close?

If you are on a short-term disability (STD) leave, you will transition to Frontier at closing. Employees on other approved leaves of absence at closing will transfer to Frontier and be treated in accord with the terms of the approved leave. If you are on a long-term disability (LTD) leave at close, you will not transfer to Frontier and will remain covered by the terms of the Verizon LTD benefits.

12. Will there be a disruption or change in how I get my STD/WC check after close?

No, we expect no disruption. We are working with Verizon’s current vendors to ensure a seamless transition onto coverage with Frontier.

Compensation

1. What is Frontier’s non-union pay scale?

Frontier’s salary structure is market-based consisting of base salary and incentive compensation. Certain executive level positions may be eligible for annual long-term grants. Frontier believes in pay for performance compensation philosophy, with individual and company performance as key differentiators for both salary and bonus treatment.

2. What will happen to non-union salaries? Will pay reductions occur after the first year?

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Non-union salaries will be reviewed on a case by case basis.

3. Does Frontier have LTI plans for directors? If so, what are the plan components?

Yes. Frontier has LTI plans for directors on a nomination basis. Long-term incentives consist of Frontier restricted stock awards.

4. What are Frontier’s overtime policies for non-union employees?

Frontier pays overtime based on applicable State or Federal Law.