Press Release

PUC OKs Settlement Agreement for Citizens Communications Co. Purchase of Commonwealth Telephone Co.

Published on 3/1/2007

Filed under: Telecommunications

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement agreement that supported the purchase of Commonwealth Telephone Co. and its affiliates by Citizens Communications Co.

        The Commission voted 4-0 to approve the unanimous settlement which supported the transaction. The settlement was reached between the companies, the state’s Office of Consumer Advocate (OCA), the Commission’s Office of Trial Staff, the state’s Office of Small Business Advocate (OSBA) and the Communications Workers of America. In agreeing to the settlement, the Commission determined that the acquisition is in the public interest.

        According to the settlement, the merger will provide significant benefits for Pennsylvania customers, including:

• Limited rate increases for the next three years, which also extends to the Frontier telephone subsidiaries of Citizens;
• Deployment of stand-alone high speed internet service to customers for two years and increased 3 Mbps downstream bandwidth availability within three years;
• Consumer education outreach on Lifeline programs, which provide help for consumers with limited incomes;
• Continued employment levels through the end of the current contract (Nov. 30, 2008) while maintaining the Commonwealth Telephone call center and honoring existing bargaining agreements;
• Certain financial safeguards; and
• Service quality reports to be given to OCA and OSBA through 2008.

        Commonwealth Telephone provides service to 312,375 access lines in Berks, Bradford, Bucks, Carbon, Chester, Columbia, Dauphin, Lackawanna, Susquehanna, Tioga, Wyoming  and York counties. Citizens owns and operates five local exchange companies – the Frontier companies – which provide service to about 38,700 access lines in Bedford, Berks, Bradford, Fulton, Lancaster, Lycoming, McKean, Potter, Schuylkill and Tioga counties.

       The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner. For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

# # #

Docket No. A-310800F0010

Contact:

• Press Secretary
  717-787-5722