ICC APPROVED FRONTIER-VERIZON
REORGANIZATION WITH CONDITIONS

On April 21st, 2010 the Illinois Commerce Commission approved the
acquisition of Verizon’s land line telephone service in IL by Frontier
Communications. This approval was allowed with the adoption of the
following requirements:

     1 Be prohibited from paying dividends or otherwise transferring any
        Illinois cash balances to its parent company if Frontier Illinois fails
        to meet or exceed service quality standards such as toll and
        assistance answer time, information answer time, repair office
        response, installation requests greater than five business days,
        interruptions of service greater than 24 hours and trouble reports
        per 100 lines;

     2 Keep available exclusively for Illinois operations an aggregate
        amount equal to or higher than $50 million;

     3 Shall deploy digital subscriber line (DSL) broadband facilities so
        that by December 31st, 2013 85 percent of households within the
        service territory are able to access broadband service provided
        by the company at speeds of 3 Mbps download speed;

     4 Cap all regulated noncompetitive retail rates for the former Verizon
        operating companies for three years from the date of the closing of
        the transaction. After three years, Frontier may propose non-
        competitive retail rate increases; and

     5 Assume all obligations under Verizon’s current interconnection
        agreements, interstate special access tariffs and intrastate tariffs,
        commercial agreements, line sharing agreements and other existing
        arrangements with wholesale customers, and shall not change the
        rates, terms or conditions, nor terminate those agreements for the
        term of those agreements or 30 months from the closing of the
        reorganization.

     6 Conduct an annual internal audit to document the procedures
        performed and conclusions to determine the cost allocations
        between regulated and non-regulated activities are in compliance
        with Frontier’s cost allocation manual filed with the Commission
        and that the cost allocation manual is correct and complete.

Frontier Communications will have a total of approximately 670,000
access lines in Illinois.

The two Illinois labor contracts with Frontier and Verizon will remain in
full-force until 2012.