©This document contains proprietary and/or confidential information.  This document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited.

1

Frontier CommunicationsThe Customer First – Always!

IBEW 363-NYCompany Benefits Proposal

2010 Collective BargainingCONTRACT RATIFICATION

Nov 29 – Dec 2 2010

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Benchmark Statistics – Medical Premium Cost Sharing

Total Premium Cost Sharing (Employee)

Watson Wyatt / NBGH Survey, 2010 1

2009 2010

21% 22%

Total Premium Cost Sharing(Employee)

Towers Watson Survey 2010 2

Single Family

20% 23%

1 Combined Single and Family, NBGH – National Business Group on Health

• 2011 FTR Legacy IBEW average employee cost sharing is at 22%

• 2011 FTR Legacy all Unions average employee cost sharing is at 21%

• IBEW 363 employees currently pay 19%

2 Towers Watson 2010 Health Care Cost Survey

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Tobacco User Premium & Tobacco Cessation ProgramTobacco User Premium • Effective 1/1/2011, introducing Tobacco User Premium for all employees

•Tobacco User Premium = 10% of the premium cost of single coverage of the medical plan in which employee enrolls, if a covered employee or covered spouse is a tobacco user

Tobacco Cessation Program • Offered to all employees and their spouses, fully paid by the Company

• Features:

– 5 scheduled one on one phone counseling sessions with professional coach– Unlimited inbound calls to coach– Lifetime web support– OTC Medications, fully paid by Company (Patch, Lozenges, or gum)

• Tobacco use increases risk of:– Blood Clots, which may lead to aneurysms and strokes*– Cancer (especially in the lung, mouth, larynx, pancreas, esophagus, bladder, kidney and cervix)*– High blood pressure and diabetes*– Pregnancy-related problems, including miscarriage and premature labor*– Asthma*

• “Secondhand smokers” are at risk of asthma, coronary artery disease, lung cancer and allergy*

• On average tobacco users spend $140 a month or $1,680 a year on tobacco/cigarettes* Based on “American Journal of Respiratory and Critical Care Medicine”, July 2006

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48

2010 Medical Plan Enrollment

Single EE + 1 FNS Family Waived Total% of Plan

ParticipationFTR Exclusive EPO 34 29 4 26 93 16%FTR Preferred PPO 10 24 1 35 6%Silver PPO 11 3 14 2%MVP 111 133 136 380 66%Waived 57 57 10%Total 166 186 4 166 57 579% of Tier Participation 29% 32% 1% 29% 10% 100%

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MVP Plan for 2011& Beyond

• MVP presented Frontier with double digit renewal increases for the past five years • 2011 current MVP plan’s renewal came with a 10.2% increase • Proposed plan will result in lower per pay period employee contributions, but slightly higher out of pocket at the time of service

Company subsidy and Employee contribution % for MVP will follow the FTR Exclusive EPO andFTR Preferred PPO Plan for the life of the contract.

Plan Features

2010 MVP Plan 25/40 HMO

2011 MVP Plan 30/50 HMO D

Office Visits - PCP $25 Copay $30 Copay $5Office Visits - Specialist $40 Copay $50 Copay $10Outpatient Lab 100% 100% $0Outpatient X-Ray $40 Copay $50 Copay $10Well baby/Child Care 100% 100% $0Routine Physical $25 copay $30 CopayRoutine Well Woman $25 copay $30 CopayHospital Inpatient $500 Copay $750 Copay $250Hospital ER $100 copay 150 copay $50

RX Retail (30 days)

$10 Generic $30 Brand Formulary

$50 Brand Non-Formulary

$10 Generic $30 Brand Formulary

$50 Brand Non-Formulary $0

RX Mail (90 days)*

$20 Generic $60 Brand Formulary

$100 Brand Non-Formulary

$25 Generic $75 Brand Formulary

$125 Brand Non-Formulary $0 in 2011

* Mail Order Copay eff 1/1/2011 for all MVP HMOs = two and a half times (2.5x) the Retail 30-day supply copay

Above chart is intended to highlight the benefits available under each plan options. For more plan details, please logon to www.mvphealthcare.com.

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Drug Plan Design

NOTES:(a)- Various plan limitations that are summarized in the 2010 Summary Plan Description (SPD) will continue to apply for the duration of this contract.(b)- Mail order co-pay for a 90-day supply = two and a half times (2.5x) the Retail 30-day supply co-pay(c) - As per Section 27.01.3(2), the Company may increase co-pay rates by up to 25% year over year. This does not apply to the items listed above in which specific increases are shown for 2011 plan year.

2009 Frontier population’s Prescription Drugs Utilization as a % of total Prescriptions filled:• Generic = 66.3%• Formulary Brand = 23.9%• Non-Formulary Brand = 9.8%

In 2009 plan year 99.3% of Frontier population utilized Generic Drugs, if a Generic Drug was available.

Current ProposedPlan Features 2010 2011

Retail - 30-day supplyGeneric(1) $14.65 $15Formulary(2) $35.90 $35Non-Formulary(3) $35.90 $45Other Drugs(4)

$35.90 $55Mail - 90-day supplyGeneric(1) $29.30 $37.50Formulary(2) $71.80 $87.50Non-Formulary(3) $71.80 $112.50Other Drugs(4)

$71.80 $137.50

1,2,3&4 - refer to next slide for definition