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Protecting Our Future at Frontier
Presentation Agenda
1. Review of Frontier’s Financial Status 2. CWA’s Goals and Strategy 3. National Frontier Program
2
Frontier Has Grown Rapidly
3
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.
“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
Frontier is Losing Subscribers Frontier Subscribers, 2016 - 2018
Source: CapitalIQ accessed 01/22/2019
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Frontier Investment is Projected to Shrink Frontier Capital Expenditures, 2016 - 2018 (Projected to 2022)
6
Source: CapitalIQ accessed 01/22/2019
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
7
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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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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“Our Journey Forward” Program
Source: Frontier Communications, Investor Update Third Quarter 2018, November 6, 2018. Available at:
http://investor.frontier.com/financial-information 10
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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Documenting the Frontier Plant
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Source: Minnesota Department of Commerce, ‘In the Matter of a Commission Inquiry into the Service Quality, Customer Service,
and Billing Practices of Frontier Communications” 01/04/2019. Available at: http://mn.gov/commerce-stat/pdfs/frontier-service-
quality-report-final.pdf
Member Action Makes the Difference
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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
14