October 24, 2014 — STAMFORD, Conn.–(BUSINESS WIRE)–Frontier Communications Corporation (NASDAQ:FTR) today announced completion of its $2 billion acquisition of AT&T Inc.’s (NYSE: T) wireline business, statewide fiber network, and U-verse operations in Connecticut. As part of the acquisition, Frontier also acquired AT&T’s DISH satellite TV customers in Connecticut. As a result of the transaction, Frontier will offer broadband, voice, video and other products to residential and business customers in Connecticut, the 28th state in the company’s portfolio.
“Frontier is excited to offer our products and services to customers in our home state,” said Maggie Wilderotter, Frontier’s Chairman and Chief Executive Officer. “We look forward to bringing our local engagement management model to Connecticut and empowering all Frontier employees to provide high-quality service to their friends and neighbors and to become active contributors to their communities.”
Wilderotter added, “Our expansion into Connecticut shows Frontier is growing strategically in addition to organically in our suburban and rural markets. We offer great broadband products that include customer protection for their online experience. Frontier is a leader in offering comprehensive end-to-end online protection. It sets Frontier apart, and it demonstrates that focusing on our customers will maximize shareholder value.”
“Frontier’s solid reputation and track record for providing high-quality products and service to customers across the country was a major consideration in our decision to sell them our Connecticut operations,” said Randall Stephenson, AT&T Chairman and CEO.
Frontier’s customers, local communities, employees and shareholders will benefit substantially as a result of this transaction:
Frontier is implementing its proven local engagement community-oriented go-to-market strategy in Connecticut led by General Managers and a Senior Vice President for the state.
Connecticut customers will have the same products and services that they enjoyed with AT&T, including U-verse, plus new products such as Frontier Secure, a suite of services to protect all aspects of customers’ online lives, including identity theft protection.
Frontier has committed to capital investments to expand and further upgrade the high-quality broadband network.
The all-cash transaction means Frontier shareholders receive the benefit of increased diversification of assets and operations without any dilution in ownership.
Frontier is retaining the transferred AT&T Connecticut workforce and is in discussions with the state’s Department of Economic and Community Development about bringing a substantial number of new jobs to Connecticut.
Since the transaction was announced December 17, 2013, Frontier received approval from the U.S. Department of Justice, the Federal Communications Commission, the Connecticut Public Utilities Regulatory Authority and other state regulatory authorities. Additionally, the company received the full support of Communications Workers of America (CWA) Local 1298 and signed a new agreement with the Local that will add 85 jobs to the workforce in Connecticut.
Frontier will make capital investments of $63 million over the next three years for U-verse expansion and broadband network speed enhancements to increase speeds to 10Mbps or greater for more than 100,000 households. It will also construct an ultra-high-speed middle mile fiber network connecting central offices across the state and dedicate at least $3 million of capital to expanding broadband to areas currently unserved or underserved.
Frontier acquired approximately 415,000 data, 875,000 voice, and 215,000 video connections (counts as of 6/30/14) in Connecticut, including AT&T’s local business connections and existing carrier wholesale relationships. Frontier is welcoming approximately 2,500 former AT&T Connecticut employees to the company, ensuring continuity of existing customer relationships and a trained and trusted workforce.
Frontier is proud that 13 percent of its workforce comprises veterans and military families. It will continue its strong support through veteran-focused initiatives in the state, including a pilot program to improve the adoption and utilization of the Department of Veterans Affairs MyHealtheVet and home Telehealth. Frontier will work with the Attorney General and Office of the Consumer Counsel to provide subsidized broadband service to eligible low-income veterans and host veteran-focused job fairs.
Beginning October 25, 2014, the company will undertake a full conversion of AT&T’s Connecticut wireline, broadband and video operations into Frontier’s systems, providing residential and business customers with seamless, high-quality performance and enhanced customer service. Frontier has successfully completed numerous complex system and network migrations, most recently converting former Verizon operations in 14 states. Frontier estimates that it will realize significant cost savings from leveraging its current infrastructure in supporting the new Connecticut business operations.
