Windstream 2011 Annual Report Download - page 80

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To compete effectively in our business markets, we are investing in our network and service offerings to offer the most
technologically advanced solutions available. We rely on scalable, customizable solutions and a suite of services that allows us
to meet all of our business customers' communications needs.
Consumer
We experience intense competition for consumer services. During 2011, we lost approximately 81,000 consumer access lines,
or 4.0 percent of our total consumer access lines. Sources of competition in our consumer service areas include, but are not
limited to, the following:
• Wireless carriers: Wireless providers primarily compete for voice services in our consumer markets. Consumers
continue to disconnect residential voice service in favor of wireless service. In addition, wireless companies continue
to expand their high-speed Internet offerings, which may result in more intense competition for our high-speed
Internet customers.
• Cable television companies: In addition to offering video services, cable television providers are aggressively offering
high-speed Internet and voice services in our service areas. These services are typically bundled and offered to our
customers at competitive prices.
• Communications carriers: We are required to lease our facilities and capacity in our consumer areas to other
communications carriers. These companies compete with us by providing voice and high-speed Internet services to
consumers.
We are generally subject to more stringent regulation than our competitors in our consumer markets. For example, as a provider
of last resort, we are required to provide basic phone service to customers in our service areas regardless of whether it is cost-
effective to do so.
To retain customers in our consumer service areas, we are committed to offering faster broadband speeds and value-added
services, while also offering the convenience of bundling those services with voice and video services. During 2011, we added
approximately 49,000 consumer high speed Internet customers, an increase of 4.2 percent, as compared to the prior year.
REGULATION
Our operations are subject to regulatory oversight by the Federal Communications Commission (the "FCC") and from state
public utility commissions ("PUCs"). We actively monitor and participate in proceedings at the FCC and PUCs and address
federal and state legislatures on matters of importance to us.
There has been significant regulatory activity recently around efforts to reform intercarrier compensation and the universal
service fund ("USF") at the federal level. Late last year, the FCC issued a plan to modernize federal intercarrier compensation
and USF policies. The intercarrier compensation portion of the plan eliminates per minute terminating access charges over a six
year period, while offering some retail rate flexibility and a revenue recovery mechanism. With regards to USF, the FCC
provided a framework for reform aiming to provide future funding based on an efficient forward-looking model and redirect
support to drive broadband expansion in high-cost areas. Many details of the plan remain to be decided, and we are actively
involved in the process.
For additional information on these and other regulatory items, please refer to the Regulatory section of Management's
Discussion and Analysis in this Annual Report on Form 10-K.
MANAGEMENT
Staff at our headquarters and regional offices supervise, coordinate and assist subsidiaries in management activities including
investor relations, acquisitions and dispositions, corporate planning, tax planning, cash and debt management, accounting,
insurance, sales and marketing support, government affairs, legal matters, human resources and engineering services.
EMPLOYEES
At December 31, 2011, we had 14,638 employees, of which 1,724 employees are part of collective bargaining units. During
2011, we had no material work stoppages due to labor disputes with our unionized employees (see Item 1A, “Risk Factors”).
SEGMENTS
We operate as one reportable segment providing communications and technology services to our customers.