Windstream 2012 Annual Report Download - page 80

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Even if we successfully integrate these businesses, there can be no assurance that these integrations will result in the realization
of the full benefit of the anticipated synergies, cost savings or growth opportunities or that these benefits will be realized within
the expected time frames.
We may need to defend ourselves against lawsuits or claims that we infringe upon the intellectual property rights of others.
From time to time, we receive notices from third parties, or we are named in lawsuits filed by third parties, claiming we have
infringed or are infringing upon their intellectual property rights. We may receive similar notices or be involved in similar
lawsuits in the future. In certain situations, we may have the ability to seek indemnification from our vendors regarding these
lawsuits or claims. If we cannot enforce our indemnification rights or if our vendors lack the financial means to indemnify us,
these claims may require us to expend significant time and money defending our alleged use of the affected technology, may
require us to enter into licensing agreements requiring one-time or periodic royalty payments that we would not otherwise have
to pay or may require us to pay damages. If we are required to take one or more of these actions, it may result in an adverse
impact to our results of operations and financial condition. In addition, in responding to these claims, we may be required to
stop selling or redesign one or more of our products or services, which could adversely affect the way we conduct our business.
Weak economic conditions may decrease demand for our services.
We could be affected by economic conditions and downturns in the economy, especially in regards to our business customers.
Downturns in the economy in the markets we serve could cause our existing customers to reduce their purchases of our services
and make it difficult for us to obtain new customers.
Our relationships with other communications companies are material to our operations and their financial difficulties may
adversely affect us.
We originate and terminate calls for long distance and other voice carriers over our network in exchange for access charges.
These access charges represent a significant portion of our revenues. Additionally, we are making significant capital
investments to deploy fiber-to-the-tower and other network services for wireless companies in return for long-term revenue
generating contracts. If these carriers go bankrupt or experience substantial financial difficulties and we are unable to timely
collect payments from them, it may have a negative effect on our results of operations and financial condition.
Key suppliers may experience financial difficulties that may affect our operations.
Windstream purchases a significant amount of equipment from key suppliers to maintain, upgrade and enhance our network
facilities and operations. Should these suppliers experience financial difficulties, their issues could adversely affect our business
through increased prices to source purchases through alternative vendors or unanticipated delays in the delivery of equipment
and services purchased.
Adverse developments in our relationship with our employees could adversely affect our business, our results of operations
and financial condition.
As of December 31, 2012, 1,722 of our employees at various sites, or 12 percent of all of our employees, were covered by
collective bargaining agreements. Our relationship with these unions generally has been satisfactory, but occasional work
stoppages have occurred.
We are currently party to 24 collective bargaining agreements and one National Pension Agreement with several unions, which
expire at various times. Of our existing collective bargaining agreements, ten agreements covering 612 employees are due to
expire in 2013. In addition, the national pension agreement covers 612 employees. This agreement expired in 2010 but has been
extended indefinitely, subject to the right of Windstream or the unions to terminate the agreement with 30 days notice.
Historically, we have succeeded in negotiating new collective bargaining agreements without work stoppages; however, no
assurances can be given that we will succeed in negotiating new collective bargaining agreements to replace the expiring ones
without work stoppages. Increases in organizational activity or any future work stoppages could have a material adverse effect
on our business, our results of operations and financial condition.