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Protecting Our Future at Frontier

Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

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Page 1: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Protecting Our Future at Frontier

Page 2: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Presentation Agenda

1. Review of Frontier’s Financial Status 2. CWA’s Goals and Strategy 3. National Frontier Program

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Page 3: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Frontier Has Grown Rapidly

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2009 2019 2014

July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier takes on $3.3bn in new debt to finance acquisition.

October 2014: Acquires AT&T unit in Connecticut (900k access lines). $1.5bn in new debt.

April 2016: Acquires Verizon units in California, Texas and Florida (4.8m access lines). $6.6bn in new debt.

Source: Frontier Press Releases: “Frontier Communications to Acquire Verizon Assets…,” 05/13/2009; “Frontier

Communications to Acquire AT&T’’s Wireline….,” 12/17/2013; “Frontier Communications to Acquire Verizon’s Wireline

Operations…,” 02/05/2015; “Frontier Communications Reports 2014 Fourth Quarter and Full Year Results,” 02/19/2015.

Page 4: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

“Tower of Debt” first hits in 2021 and 2022 Frontier Debt Maturities, 2018 - 2027

Source: Frontier Communications earnings presentation slides. Available at:

http://investor.frontier.com/Cache/1001245543.PDF?O=PDF&T=&Y=&D=&FID=1001245543&iid=4057107. Includes $300m in daw

on $850m revolver ($450m draw in October, subsequently reduced by $150m); The $32m for 2018 represents the 4th quarter

balance due 4

Page 5: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Frontier is Losing Subscribers Frontier Subscribers, 2016 - 2018

Source: CapitalIQ accessed 01/22/2019

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Page 6: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Frontier Investment is Projected to Shrink Frontier Capital Expenditures, 2016 - 2018 (Projected to 2022)

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Source: CapitalIQ accessed 01/22/2019

Page 7: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Frontier Reducing Staffing Employment and CWA Representation, 2016 - 2018

Source: Frontier Quarterly Presentations, Available at: http://investor.frontier.com/financial-information and CWA Internal Data

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Page 8: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

CWA Goals at Frontier

1. Increase investment in the network 2. Maintain employment levels 3. Eliminate contracting of both call center and

technician work

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Page 9: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

National CWA Strategy

Our strategy pursues two approaches simultaneously:

1. Working with the company a. Our Journey Forward

2. Working independently a. State regulatory agencies b. Bargaining

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Page 10: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

“Our Journey Forward” Program

Source: Frontier Communications, Investor Update Third Quarter 2018, November 6, 2018. Available at:

http://investor.frontier.com/financial-information 10

Page 11: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

National Frontier Program

1. Member Education: Lead Coordinators will present this information to 5% of our members.

2. Service Quality Documentation: Lead Coordinators will collect the following items.

a. A member survey on service quality

b. Pictures documenting the state of outside plant

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Page 13: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Member Action Makes the Difference

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Page 14: Protecting Our Future at Frontier · Frontier Has Grown Rapidly 3 2009 2014 2019 July 2010: Acquires Verizon units in West Virginia and 13 others states (4.1m access lines). Frontier

Timeline for Program

January/February:

1. Selection of Lead Coordinators

2. Frontier Webinar for Local Leaders

March 8th: Kick-off Call For Program

March 8th – April 31st: (Lead Coordinators)

1. Present slides on Frontier to 5% of membership

2. Distribute and collect member survey on service quality

3. Collect pictures documenting state of plant

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