Frontier Communications Presentation by Michael Flynn

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Transcript Frontier Communications Presentation by Michael Flynn

South East Central Illinois

Regional Broadband Summit

Mike Flynn Frontier Communications Sr. Vice President/GM - Illinois December 1, 2011

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

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Key Stats (September 30, 2010) 1

States Total Access Lines High Speed Internet Subscribers Satellite & FiOS Video Subscribers Employees Revenues % Business Customer % Residential Customer % Regulatory EBITDA % Revenues

Frontier @ a Glance

27 5,875 1,693 516 14,758 $5,747 42 % 45 % 12 % $2,746 48 % •

Frontier Communications (NYSE: FTR) was founded in 1935 as Citizens Utilities and became narrowed to a Telecom Network Operator in 2004.

Frontier’s network provides fast, reliable data, voice, and video service to 3.5 million residential customers and 381,000 business customers across 27 states.

Frontier is the largest communications company focused on rural America.

Free Cash Flow % Paid as Dividends $1,281 58 % Total Debt Cash Net Leverage $8,262 $351 2.8

(1) $ Millions; Units 000s. May not sum due to rounding. Pro forma for acquisitions. Revenues, EBITDA, and FCF are for the Last Twelve Months.

A transformational acquisition of properties from Verizon tripled Frontier’s business size.

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

New Frontier in Illinois

• Frontier’s Illinois commitment: – 85% of all Frontier Illinois households will have access to broadband– High Speed Internet (HSI) by the end of 2013 resulting from a capital investment of $50+ million.

• Illinois 3 Year Projection… Starting at 59.5% HSI coverage from our predecessor.

– Network build is underway and making strong progress: Making HSI available to 85k additional homes by enabling $50M capital investment first 17 months.

– Major backbone upgrades of another $2+M – Building our Illinois ROADM network. (Capable of up to 880G) – Plan for 2012 is to add rural market builds of 50K+ additional homes and businesses with HSI access in Illinois!

– Year 3 Broadband Build for Illinois will add nearly 20K more new homes and businesses with Frontier HSI network access.

– Ending projection of HSI Coverage 86-92% from 59% Day 1 July 2010!

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

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Broadband Deployment

All new

Frontier network builds with the purpose of increasing household and business accessibility to High Speed Internet (HSI).

• Projects with the purpose of increasing existing bandwidth for customers.

• Large backbone enhancements to upgrade acquired 414 towns, and connect them to existing Frontier infrastructure where 92% of • Frontier customers in original 138 exchanges can have HSI today.

Overall project categories include: DSLAM placement, fiber optic builds, local and regional transport ROADM networks being built to enhance throughput for 1G and beyond services. FTTH – Blackstone •

Not just network

… Did you know Frontier has provided over 100,000 new Laptops and PC’s into homes for free with HSI service packages! A great way to help overcome the digital divide in our rural markets!

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

High-Capacity National Backbone

Frontier’s Fiber Network Interconnects it’s 27 State Footprint Portland Beaverton Seattle Everett Redmond Kennewick La Grande Tigard Moscow Coos Bay Mound Lakeville Wausau Sun Prairie Muskegon Rochester Chicago DeKalb Bloomington Norwalk Gardnerville Salt Lake Ft. Wayne Athens Charleston Charles Town Clarksburg Carbondale Ashburn Bluefield Durham Palo Alto Phoenix Atlanta Myrtle Beach

20GigE OC48/Gig/e Core POP Core POP/Peering Frontier 13 Aggregation POP Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

Illinois Backbone – June 2010 (Vz Network)

(10) DS3 Freeport (11) DS3

Leased On Net

Chicago (11) DS3 Dekalb (4) OC-12 Princeton (6) DS3 (4) DS3 Carthage Bloomington Rantoul (11) DS3 Jacksonville Moweaqua (25) DS3 Olney Irvington Carbondale

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

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Illinois Backbone –YE 2011 New Frontier

(2+) GIGE Freeport (1) GIGE Minneapolis, MN Chicago Morrison (1) GIGE Dekalb

Leased On Net

(2+) GIGE Building our ROADM (Reconfigurable Optical Add/Drop Multiplexed) Network across Illinois.

Princeton (1) GIGE (1) GIGE Bloomington Carthage (1) GIGE (1) GIGE Rantoul Jacksonville Moweaqua (1) GIGE Irvington Olney (2+) GIGE (2+) GIGE (1) GIGE (2+) GIGE Carbondale (2+) GIGE Atlanta, GA

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.

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Thank you, It is a pleasure sharing our New Frontier HSI Broadband build out goals for our future, and the future of Illinois!

Our Mission To be the leader in providing communications services to residential and business customers in our markets ©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.