Windstream 2014 Annual Report Download - page 85

9
Consumer
We experience intense competition for consumer services. During 2014, we lost approximately 107,700 consumer voice lines, or
6.3 percent of our total customer base. In addition, consumer high-speed Internet customers decreased by approximately 39,300,
or 3.4 percent, in 2014. Sources of competition in our consumer service areas include, but are not limited to, the following:
 &DEOHWHOHYLVLRQcompanies: Cable television providers are aggressively offering high-speed Internet, voice and video
services in our service areas. These services are typically bundled and offered to our customers at competitive prices.
 WirHOHVV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.
 &RPPXQLFDWLRQV 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 carrier 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.
We are committed to retaining customers by offering faster broadband speeds and value-added services, while also offering the
convenience of bundling those services with voice and video services.
REGULATION
We are subject to regulatory oversight by the Federal Communications Commission (“FCC”) for particular interstate matters and
state public utility commissions (“PUCs”) for certain intrastate matters. We are also subject to various federal and state statutes
that direct such regulations. We actively monitor and participate in proceedings at the FCC and PUCs and engage federal and state
legislatures on matters of importance to us.
From time to time, federal and state legislation is introduced dealing with various matters that could affect our business. Most
proposed legislation of this type never becomes law. It is difficult to predict what kind of legislation, if any, may be introduced
and ultimately become law.
For additional information on these and other regulatory items, please refer to the “Regulatory Matters” section of Management’s
Discussion and Analysis of Financial Condition and Results of Operations 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, 2014, we had 12,626 employees, of which 1,530 employees are part of collective bargaining units. During 2014,
we had no material work stoppages due to labor disputes with our unionized employees (see Item 1A, “Risk Factors”).
BUSINESS SEGMENTS
We operate as one reportable segment providing communications and technology services to our customers.