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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported) October 21, 1996
FRONTIER CORPORATION
(Exact name of registrant as specified in its charter)
New York 1-4166 16-0613330
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
180 South Clinton Avenue, Rochester, New York 14646
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (716)777-1000
Item 5 Other Events
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The Registrant and Qwest Communications Corporation
announced an agreement to construct a nationwide fiber optic
network, using Lucent Technologies fiber cable.
As permitted by General Instruction F to Form 8-K, the
Registrant incorporates by reference the information contained in
the press release which is filed as an Exhibit to this Report on
Form 8-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf of the undersigned hereunto duly authorized.
Frontier Corporation
(Registrant)
Dated: October 21, 1996 By: /s/Barbara J. LaVerdi
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Barbara J. LaVerdi
Assistant Secretary
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EXHIBIT INDEX
Exhibit Number Description
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99 Press Release dated Filed herewith
October 21, 1996
regarding fiber optic
network construction
agreement
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Frontier Corporation
FRONTIER PRESS RELEASE 180 South Clinton Avenue
Rochester, New York 14646
DATE: October 21, 1996
CONTACT: SEE END OF RELEASE
SUMMARY: FRONTIER LAUNCHES NATION'S NEXT-GENERATION NETWORK
Ventures with Qwest Communications, Lucent Technologies
Rochester, New York -- October 21, 1996 -- Frontier Corporation
(NYSE:FRO) announced today that it will join with Denver-based,
privately owned Qwest Communications to build the industry's most
technologically advanced fiber optic network. When complete, this
$2 billion network will be the largest single fiber build in U.S.
telecommunications history. Lucent Technologies has been selected
to provide its TrueWave (registered mark) fiber cable for the network.
"We are creating the first, next-generation national network
in the telecommunications industry," said Frontier Chairman and
Chief Executive Officer Ronald L. Bittner. He indicated that
Frontier will be investing a total of nearly $500 million in this
project. "This investment solidifies our position as an industry-
leading integrated services provider and will guarantee our
customers the most reliable, highest quality network capacity for
voice, data and multimedia communications well into the future."
The multi-ring, SONET-based network will dramatically reduce
Frontier's network transmission costs and will ensure
unparalleled overall network performance and reliability. In
addition, the company will be assured an abundant supply of
future network capacity at very low incremental cost. This will
significantly enhance Frontier's ability to grow and successfully
compete for new business.
Frontier's nationwide broadband network will interconnect
nearly 100 cities, encompass more than 13,000 route miles and
provide coast-to-coast SONET network connectivity. Frontier's 24
fibers will allow the company to surpass the transport
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capabilities of all existing long distance companies in terms of
bandwidth and reliability.
"We're not building just another national network, we're
building the future," said Robert L. Barrett, president of
Frontier Network Systems and Services. "We'll leapfrog existing
technology and create an entirely new cost structure for our long
distance operations."
Through this venture with Qwest, Frontier is able to reap
the benefits of network ownership very quickly and economically.
Qwest has pioneered the construction and maintenance of fiber
networks along railroad rights-of-way and already has more than
3,500 miles of the network in place. Frontier will begin deriving
benefits from the new network by mid-year 1997.
"This is a tremendous opportunity for both Frontier and
Qwest to literally build the future of telecommunications," said
Douglas Hanson, Qwest president and CEO. "We came into this
project with a blank page and this is truly the first of a new
generation of networks. We are building a network with virtually
unlimited capabilities that can keep pace with the rapid
introduction of new technology."
Frontier's SONET network architecture will have the distinct
advantage of being self-healing, redundant and 100 percent
survivable. "What this means to our customers is that any fiber
break will be imperceptible for not only voice, but data traffic
as well," explained Barrett. "In essence, we will be able to
guarantee error-free performance even during fiber cuts and
catastrophic network conditions."
Establishing control over its network quality, availability,
price, operations and management is critical to Frontier's growth
strategy. "We continue to believe that there is tremendous growth
potential in the long distance business, especially in the demand
for services that require more bandwidth," Barrett added. "With
this broadband network, Frontier will be quicker to market with
enhanced product capabilities and dynamic new services." He noted
that Frontier will strengthen its competitive position by
establishing new thresholds for network performance and cost, and
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by offering customers a complete communications solution designed
with the most advanced technology.
"We're delighted to be supporting Frontier and Qwest as they
enter new competitive markets," said Nina Aversano, president of
Global Commercial Markets at Lucent Technologies. "The TrueWave
fiber is specially designed for current and future network
requirements that will keep Frontier and Qwest on the leading
edge of technology for years to come."
Frontier's $500 million investment in this network includes
construction, fiber, electronics, engineering and design. The
investment will begin in the fourth quarter of this year and
extend into 1998. It is projected that more than half of the
investment costs will be incurred in 1997, and Frontier expects
to finance the project primarily with cash from operations and
short- to medium-term debt.
"The strength of Frontier's balance sheet affords us the
opportunity to take this bold step to enhance our long-term
growth potential," said Frontier Chief Financial Officer Louis L.
Massaro. "When completed, we will reduce our annual transport
costs by more than 50 percent and our incremental transport costs
in the range of 80 percent. But this announcement is about more
than just costs-it's about accelerating Frontier's capacity to
grow and compete in the future."
"In short, this network will lower our cost structure,
vastly expand our capabilities and virtually eliminate the
increasing risk of obtaining leased network capacity for our
customers' requirements," Massaro concluded.
Frontier Corporation (NYSE:FRO) is the parent company whose
long distance, local telephone and wireless communications
subsidiaries provide a range of integrated services to customers.
Frontier is a Fortune 500 company with annualized revenues of
more than $2.5 billion. With more than 8,500 employees and 150
sales locations nationwide, Frontier is the fifth largest long
distance company in the United States.
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Qwest designs and constructs fiber optic networks; manages
its own nationwide long distance network; offers long distance
services to commercial users; and provides network transmission
facilities to other long distance companies.
Lucent Technologies designs, builds and delivers a wide
range of public and private networks, communications systems and
software, consumer and business telephone systems and
microelectronics components. Bell Laboratories is the research
and development arm for the company. Lucent Technologies was
formed as a result of AT&T's restructuring and became a fully
independent company -- separate from AT&T -- on September 30,
1996.
You can now receive a faxed copy of any Frontier Corporation
press release dating back to October 1995, free of charge, 24
hours a day. Call 1-800-758-5804, extension 762302. An automated
system will provide you with instructions.
Visit Frontier Corporation's home page on the World Wide Web:
http://www.frontiercorp.com
Contacts:
Frontier Corporation: John Purcell: 716-777-7944 (media)
Michele Sadwick: 716-777-6021 (media)
Phil Yawman: 716-777-6179 (investors)
Qwest Communications: Tony Brodman: 303-291-1470
Lucent Technologies: Tom Jones: 410-584-4665 (day)
410-256-1711 (evening)
The following will be available via fax-on-demand by calling
1-800-753-0352, extension number 702.
Profile on Frontier
Full-color Frontier Network map
Profile on Qwest
Profile on Lucent
Product literature on TrueWave (registered mark) fiber
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Attachment to Frontier press release
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Map of the United States showing the Frontier National Network
and illustrating (1) the Frontier Planned Fiber Network; (2) the
Leased Network; (3) existing Frontier switches; and (4) existing
Frontier Points of Presence.
