|Exam Name||:||MPS 500 Rls.3.0 Operations and Maintenance|
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|Updated On||:||April 22, 2019|
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4 new services can be found from M&C - concentrated to raise effectivity, reliability, and extra automate contact centers and IVR platforms, while ensuring greatest productivity. not ever before has there been such offerings all at once for functions designed mainly around allowing Contact center administration to make more desirable use of their latest Contact core and IVR platforms.Bohemia, big apple, February 04, 2015 --(PR.com)-- M&C buddies announced today its offering of four new capabilities, all focused to boost effectivity, reliability, and extra automate contact centers and IVR structures, while making certain finest productiveness. not ever before has there been such offerings suddenly for capabilities designed especially around permitting Contact middle management to make stronger use of their existing Contact middle and IVR structures.
“These presents characterize the end result of a ‘most useful in classification’ development and deployment procedure,” says Lou Marianacci, CEO and President, M&C friends LLC. He continues, “wants had been identified by way of our clients, solutions were built and proven in construction environments, adopted by means of a rigorous put up-creation QA method. The ultimate step was to get a ‘seal of approval’ from our customers earlier than they have been delivered to the market-at-gigantic.”
the primary of 4 new offers attainable from M&C pals is the Avaya POM provider, which empowers company Analysts and phone center Managers to turn into extra self-sufficient with palms-on capabilities. Designed to put in force computerized outbound campaigns, these campaigns will also be despatched by using SMS texts, emails, or cellphone alerts and notifications, agent-based mostly predictive dialing, interactive services-or a combination are also supplied. creating attractive interactive campaigns that supply customers the assistance they need when they want it, within the means they decide to acquire it, is all viable with POM on the Avaya charisma© adventure Portal-AAEP. M&C no longer best trains the contact core administration team on a way to implement a crusade, the strategic route of a campaign is part of the abilities transfer, and call core analysts learn the way to design innovations leveraging POM points. With this means, the advent, implementation, and administration of campaigns is simplified, which helps company cut back costs, seize more earnings and improve client satisfaction.
subsequent, is Day-2 aid for those with Avaya aura® Contact middle-AACC, featuring high level provider upon ‘implementation cutover’ day to assure optimum effectivity for the contact middle. Day-2 help prepares contact core management to be more self-satisfactory with ‘built-in tools’ and an escalation procedure. access to M&C’s subject rely consultants in issue decision and selecting the extra essential issues, guarantees optimum productivity involved core management.
The third providing is an intelligent proactive monitoring carrier referred to as iProWatch for IVR systems and purposes. Designed to cut back downtime, enhance operational efficiency and boost gadget availability, iProWatch carrier is associated with three elementary words that define its basic benefit-‘peace of intellect’! With iProWatch sanity tests are performed by way of default in 15 minute intervals for performance and performance, and any capabilities problems on the IVR platform can also be detected earlier than company is impacted. This offers the optimum level coverage against outages, alarms, blunders or disasters. It may also be totally custom-made to go well with business operational wants akin to: surroundings a ‘disk alarm’ for when a disk is running low on house; sending a notification at the first ‘signal of deterioration’ on a critical process; or alerting ‘loss of earnings’ when an utility/operation inefficiency is detected.
The fourth and remaining offering to be introduced at the moment, is M&C associates’ Agent monitor Consolidator, which gives a way for agents to navigate a whole lot of legacy green-display applications and internet features, all coming from multiple host data codecs, and delivers them to a single supply-the agent’s computer for a unified appearance. When the agent can see the “full lifecycle” of the customer adventure, first-rate provider is delivered by the agent to the caller because of: shortened name time, special notes to the agent concerning the caller, and calls stream quite simply. One customer claimed that practising time changed into reduced by using 75%, with drop down notes and screen pop alerts being accessible to brokers to help callers, and suggested a 50% enhance in agent retention.
All of those new capabilities are successfully implemented in a number of contact facilities, and may be proven upon request. For further counsel, please think free to contact us.
M&C pals LLC is a premier company of IVR, Speech, CTI and make contact with middle solutions to enterprises, govt organizations, and repair suppliers across the USA and Canada. With over 25 years of experience in IVR system deployments worldwide, we have a keen realizing of client requirements and are happy with our successes in meeting and exceeding their expectations. we are an authorized Avaya business associate and provide a full suite of capabilities for the Avaya Voice Portal, MPS 500/1000 and Nortel VPS legacy systems. M&C offers business consulting features, software administration, system design, utility design and building, superior speech design and implementation, CTI and net solutions integration. We support consumers with migration of latest functions to a new platform or an entire from the ground-up device redesign to take talents of newer applied sciences. Please contact us with any questions about our business, products and capabilities.
SANTA CLARA, CA, Feb. 8 /PRNewswire-FirstCall/ -- The superior Orlando Aviation Authority (GOAA), which operates the Orlando overseas Airport, is deploying a new speech-enabled, self-provider solution from Nortel(x) (NYSE/TSX: NT) to boost its client carrier for travelers. The solution provides instant mobilephone access to updated flight reputation on arrivals and departures as well as prevalent information corresponding to airport parking and using directions.
Orlando Airport's new answer coincides with ramp-up of Florida branch of Transportation's new 511 provider, a statewide, three-digit mobilephone quantity designed to provide current advice about commute conditions all over imperative Florida. GOAA may additionally also use Nortel's integrated Voice Response (IVR) solution to aid future speech-enabled functions for its purchasers in the airport.
"because the busiest airport in the state and one of the crucial busiest within the nation, managing pretty much 1,000 flights day to day, flexibility and ease-of-use had been key accessories during the device preference method," noted Chris Schmidt, deputy government director, better Orlando Aviation Authority. "Airport users now have yet another capability of receiving as much as the minute counsel on flight activity, parking availability and site visitors situations. The expertise provides an improved stage of consumer provider to the traveling and universal public from any mobilephone in Florida."
Nortel's speech solution is designed to support make it viable for the Orlando overseas Airport to satisfy both its existing and future consumer assistance wants as applied sciences evolve," pointed out Roxann Swanson, vice chairman and widely wide-spread supervisor, commercial enterprise Multimedia functions, Nortel. "The potential to supply immediate entry to up to date counsel is crucial for travel- oriented corporations comparable to Orlando Airport, the place customer satisfaction is so dependent on having accurate, real-time commute planning advice. We believe that this Nortel solution will aid place Orlando foreign into a 'first-mover' position for servicing their purchasers and operating their operations."
Orlando overseas Airport's new Self carrier solution for Florida's 511 comprises the Media Processing Server (MPS) 500 from Nortel to deliver speech recognition capabilities that automate hobbies requests and free agents for greater advanced inquiries. an essential component of Nortel's functions core, the necessities-primarily based, VoiceXML 2.0 certified MPS 500 additionally delivers a extra personalized client adventure via powerful, multi-language superior speech capabilities.
Nortel is also offering technical support and software development functions from the Nortel international functions portfolio.
About NortelNortel is a identified chief in providing communications capabilities that raise the human event, ignite and vigor global commerce, and at ease and protect the area's most vital suggestions. Our next-generation applied sciences, for each provider providers and firms, span entry and core networks, support multimedia and business-vital applications, and assist eliminate state-of-the-art boundaries to effectivity, speed and efficiency by using simplifying networks and connecting individuals with advice. Nortel does enterprise in more than 150 countries. For more assistance, consult with Nortel on the web at www.nortel.com. For the newest Nortel news, talk over with nortel.com/information.
certain suggestions included during this press liberate is ahead-looking and is discipline to vital dangers and uncertainties. The results or hobbies expected in these statements can also vary materially from precise consequences or movements. components which may cause results or hobbies to vary from current expectations encompass, among different issues: the effect of regulatory and criminal investigations and civil litigation movements related to Nortel's restatements and the have an effect on any resulting criminal judgments, settlements, penalties and costs could have on Nortel's effects of operations, fiscal situation and liquidity, and any related knowledge dilution of Nortel's usual shares; the findings of Nortel's impartial overview and implementation of counseled remedial measures; the result of the continuing unbiased evaluate with appreciate to revenues for specific recognized transactions, which evaluate could have a selected emphasis on the underlying behavior that led to the preliminary consciousness of those revenues; the restatement or revisions of Nortel's previously announced or filed economic results and ensuing negative publicity; the existence of material weaknesses in Nortel's inside manage over fiscal reporting and the conclusion of Nortel's management and unbiased auditor that Nortel's inner manage over monetary reporting is ineffective, which could proceed to impact Nortel's capacity to record its consequences of operations and monetary circumstance accurately and in a timely method; the influence of Nortel's and NNL's failure to timely file their fiscal statements and linked periodic experiences, together with Nortel's inability to access its shelf registration observation filed with the united states Securities and change commission (SEC); the impact of management alterations, together with the termination for reason behind Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring actions, together with the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the knowledge for better exact costs to be incurred in connection with restructuring movements compared to the estimated charges of such movements; cautious or reduced spending with the aid of Nortel's purchasers; expanded consolidation among Nortel's valued clientele and the loss of shoppers in certain markets; fluctuations in Nortel's operating results and standard industry, economic and market circumstances and boom quotes; fluctuations in Nortel's money stream, stage of unbelievable debt and latest debt scores; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and fiscal flexibility; Nortel's capacity to recruit and keep certified personnel; using cash collateral to assist Nortel's ordinary direction business activities; the dependence on Nortel's subsidiaries for funding; the affect of Nortel's described benefit plans and deferred tax assets on effects of operations and Nortel's money movement; the hostile decision of type movements, litigation in the commonplace route of company, intellectual property disputes and similar concerns; Nortel's dependence on new product construction and its potential to foretell market demand for specific products; Nortel's capacity to combine the operations and technologies of obtained businesses in a fantastic method; the affect of fast technological and market alternate; the affect of price and product competition; obstacles to overseas increase and world economic conditions, specifically in rising markets and including interest cost and forex exchange expense fluctuations; the have an impact on of explanation and consolidation in the telecommunications business; alterations in regulation of the cyber web; the have an effect on of the credit score dangers of Nortel's purchasers and the have an impact on of consumer financing and commitments; common inventory market volatility; poor developments associated with Nortel's provide contracts and contract manufacturing agreements, together with on account of the usage of a sole business enterprise for a key part of certain optical networks options; the impact of Nortel's supply and outsourcing contracts that contain delivery and installing provisions, which, if now not met, might outcomes in the charge of mammoth penalties or liquidated damages; any undetected product defects, errors or failures; the future success of Nortel's strategic alliances; and certain restrictions on how Nortel and its president and chief government officer behavior business. For more information with recognize to definite of these and other factors, see the most contemporary Annual report on kind 10-k and Quarterly document on form 10-Q filed with the aid of Nortel with the SEC. unless otherwise required by using applicable securities legal guidelines, Nortel disclaims any intention or duty to update or revise any forward-searching statements, no matter if because of new information, future activities or otherwise.
Nortel, the Nortel brand and the Globemark are emblems of Nortel Networks.
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Picture of the Airplane.By Misairi Thembo Kahungu
Kampala — The Uganda National Airlines will spend at least Shs258.5b on general operations in the first year of flying the national carrier, Daily Monitor has learnt.
The airline being revamped after it was grounded in 2001, will start flying aircraft for commercial business starting July.
The State minister for Transport, Mr Aggrey Bagiire, yesterday confirmed to the Parliamentary Committee on Physical Infrastructure chaired by Nakifuma County MP Robert Ssekitoleko that the first two Bombardier CRJ900 aircraft will be delivered at Entebbe International Airport on Tuesday next week.
"The planes will land at Entebbe International Airport on Tuesday, April 23, at 9am. This is the time when the Head of State (President Museveni) will be available to receive them," Mr Bagiire said.
A look into the breakdown of the national carrier's expected expenditure for the Shs129.5b that is in the Ministerial Policy Statement for the Financial Year 2019/20 by the Ministry of Works and Transport, the money being requested for does not include remuneration of staff.
Mr Cornwell Muleya, the airline's technical adviser, told Daily Monitor yesterday that sensitive issues that include the remuneration of staff, especially pilots, do not require being published in the media to avoid landing in the ears of the competitors.
Last week, Minister Bagiire told MPs that the Airline has recruited 24 pilots, including Captains and first officers to fly the aircraft. He said their salaries were negotiated in the range of other airlines in the East African region.
Under the general operations, funds will be spent on: Agents commission, distribution and corporate social responsibility costs, catering services, fuel, landing fees, airframe maintenance, navigation fees, insurance, training, and, advertising, among others.
Mr Muleya said most of the costs are unavoidable because they are incurred by all airlines worldwide, whether government run or privately run.
A case in point, Mr Muleya said, is the navigation and landing fees, which must be paid to the countries that run the airports of destination. He explained that navigation fees are not only paid to the country of destination, but to all countries whose airspace the aircraft flies over.
Among the 19 destinations, Mr Muleya revealed that Nigeria, Ghana and South Africa will be the long haul destinations for the Bombardier CR9 aircraft.
The airline expects to receive two Airbus a380-800 planes that are expected to fly intercontinental long haul routes.
Some of the planned expenses
Agents' Commissions Shs9.34b
Distribution and CSR costs Shs8.7b
Catering services Shs11.7b
Airframe maintenance Shs8.18b
Navigation fees Shs12.8b
Landing fees Shs6b
Although the damage wrought by the inferno at Formosa in Taiwan has not been assessed yet, it is sounding the alarms for all its facilities across the world, including Vietnam, which was also shaken by two heavy factory fires this month.
The accident occurred at an aromatics production factory run by Formosa Chemicals & Fibre Corp., a Formosa Plastics Group (FPG) subsidiary, in Taiwan earlier this month, with a large explosion followed by a dense plume of smoke rising into the sky.
No one was harmed in the explosion which was the result of a faulty or damaged pipe supplying liquefied petroleum gas (LPG) to the facility. Up to now, the fire damage has not been released, but the incident has been a wake-up call for the group’s facilities across the world.
In Vietnam, Formosa Group operates a $10.4 billion steel complex in the central province of Ha Tinh, while many subsidiaries of the Formosa family are operating in different production fields in Dong Nai, including Formosa Taffeta Dong Nai, Formosa Taffeta Vietnam (textile & dying), and Formosa Gear (mechanical components).
In this April, Vietnam witnessed two factory fires. The first fire broke out at Pan Pacific Logistics JSC in Song Than II Industrial Zone in the southern province of Binh Duong on April 11.
Firefighters tried to bring the fire at Pan Pacific Logistics JSC under control
Another fire on the very next day (April 12) destroyed a 1,000 square metre manufacturing area in Hanoi’s Nam Tu Liem district, killing at least eight people.
All four facilities of the manufacturing area were totally destroyed by the fire. The victims were living in a plastic trash bin manufacturing facility at the time of the incident. The rescue team is currently searching for people reported missing, local authorities confirmed to the media.
Fires at manufacturing facilities have increased in both number and severity of damage, reported the Police Department of Fire Prevention, Fighting and Rescue under the Ministry of Public Security (MPS).
Due to the huge stockpiles of flammable materials, goods, machines, and gadgets, industrial zones are always under threat of fire.
Data collected by the Department for Economic Zones Management under the Ministry of Investment and Planning indicates that Vietnam has had more than 300 industrial zones in operation or under construction, spanning a total area of 96,300ha.
The main hosts of those mega manufacturing facilities are the provinces of Bac Ninh, Vinh Phuc, Binh Duong, and Dong Nai. According to the MPS, in 2017 alone industrial zones accounted for 43 per cent of fire-related accidents in the country.
The Asia-Pacific region has been hit by several chemical plant explosions and fires this year. Below is a summary of the main plant accidents in the region since January 2019.
April 12, Malaysia: A fire and explosion occurred at Petronas’s Pengerang Integrated Complex. The site houses a 300,000-barrels-per-day refinery and a 1.2 million tonnes per year cracker which feeds multiple petrochemical units.
April 7, Taiwan: An explosion occurred at Formosa Chemicals & Fibre Corporation’s (FCFC) aromatics production facility in Mailiao, Taiwan due to a leak at a damaged pipe supplying liquefied petroleum gas (LPG) to the facility.
March 21, China: A series of fatal explosions occurred at Tianjiayi Chemical’s production site at Yancheng in east China’s Jiangsu province, setting the factory on fire and leaving 78 people dead and over 500 injured.
March 16, India: A fire broke out at a complex owned by Indian Oil Corp. (IOC) due to a naphtha leak at 150,000-barrel-per-day crude distillation unit began start-up operations post maintenance.
February 28, Taiwan: Tasco Chemical Corp.’s 250,000 tonnes per year methyl tertiary butyl ether (MTBE) unit in Linyuan, Taiwan caught fire and exploded.
February 12, South Korea: A fire broke out at Hanwha Total Petrochemical’s Daesan-based 280,000-tonnes-per-year ethylene vinyl acetate plant/low-density polyethylene swing plant.
January 4, China: A fire broke out at the solvent de-bitumen unit of Fujian Refining & Petrochemical (FREP) during maintenance, injuring 10 people. FREP runs a 280,000-barrel-per-day refinery, a 1.1-million-tonnes-per-year cracker, and various derivative plants at Quanzhou in Fujian province. VIR
(EDGAR Online via COMTEX) -- Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
(a) Results of Operations
2016 Compared to 2015
On April 1, 2016, we completed our acquisition of Verizon's wireline properties in California, Texas, and Florida (the CTF Acquisition). Frontier's scope of operations and balance sheet changed materially as a result of the completion of the CTF Acquisition. Historical financial and operating data presented for Frontier includes the results of the CTF Operations that were acquired in the CTF Acquisition from the date of acquisition on April 1, 2016 and is not indicative of future operating results. The financial discussion below includes a comparative analysis of our results of operations on a historical basis for Frontier operations as of and for the years ended December 31, 2016 and 2015. Unless otherwise noted, the variance explanations discussed below are based upon an analysis of the 2016 financial data for Frontier legacy operations (excluding the CTF Operations) in comparison to 2015.
The sections below include tables that present customer counts, average monthly revenue per customer (ARPC) and residential customer churn which we define as the average of the amount of residential customer deactivations during the month divided by the number of residential customers at the beginning of the month. The following also categorizes revenue into customer revenue (residential and business) and regulatory revenue (switched access and subsidy). The decline in the number of customers was partially offset by increased penetration of additional higher revenue generating products and services sold to both residential and business customers, which has increased our average monthly revenue per customer in 2016 as compared to 2015. Similar to other wireline providers, we have experienced declines in the number of traditional voice customers, switched access minutes of use and rates per switched access minute of use, due to the FCC's intercarrier compensation reform, as a result of competition and the availability of substitutes, a trend which we expect will continue.
Management believes that residential customer counts and average monthly revenue per customer are important factors in evaluating our residential customer trends. Among the key services we provide to residential customers are voice service, data service and video service. We continue to explore the potential to provide additional services to our customer base, with the objective of meeting all of our customers' communications needs.
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES2016 CUSTOMER RELATED METRICS COMPARED TO 2015 As of or for the year ended December 31, % Increase 2016 (Decrease) 2015 Customers (in thousands) 5,393 (1) 58 % 3,413 Residential customer metrics: Customers (in thousands) 4,891 (1) 57 % 3,124 Average monthly residential revenue per customer $ 77.47 21 % $ 63.93 Customer monthly churn 1.98% 9 % 1.82% Business customer metrics: Customers (in thousands) 502 (1) 74 % 289 Average monthly business revenue per customer $ 673.72 (2) % $ 690.88 Broadband subscribers (in thousands) 4,271 (2) 73 % 2,462 Video subscribers (in thousands) 1,419 (2) 156 % 554 Switched access minutes of use (in thousands) 19,450 27 % 15,327 Employees 28,332 48 % 19,160
(1) 2,283,000 residential customers, 250,000 business customers and 2,533,000 total customers were acquired at the time of the April 2016 CTF Acquisition.
(2) 2,052,000 broadband subscribers and 1,165,000 video subscribers were acquired at the time of the April 2016 CTF Acquisition.
We provide service and product options in our residential and business offerings to the customer base in each of our markets which results in a better customer experience that allows us to maximize retention of existing customers and attract new customers. As of December 31, 2016, 63% of our residential broadband customers were subscribed to at least one other service offering.
During 2016, we gained approximately 2.0 million customers, net, as compared to a loss of 96,000 customers, net, in 2015. Although we added approximately 2.5 million customers in 2016 following the CTF Acquisition, we lost a net of approximately 553,000 customers across all of our markets. These customer losses were more heavily weighted in the newly acquired CTF markets due to transition disruptions following the acquisition, resulting in higher than normal customer churn, as well as the suspension of collection activities prior to and after the closing of the CTF Acquisition, and the suspension of marketing efforts for a period of time following the acquisition. These actions resulted in fewer additions than would otherwise have been achieved. Higher than normal customer losses are expected to continue into 2017 as collections efforts are caught-up for delinquent accounts and marketing efforts ramp up.
We had approximately 4.9 million and 3.1 million total residential customers as of December 31, 2016 and 2015, respectively. Although we added approximately 2.3 million total residential customers attributable to the CTF Acquisition in 2016, we lost approximately 516,000 residential customers, net, during 2016, composed of losses in both our legacy markets and in the CTF markets, principally driven by declines in voice customers. Our residential customer monthly churn was 1.98% for 2016. Average monthly residential revenue per customer (residential ARPC) increased $13.54, or 21%, to $77.47 during 2016 as compared to 2015. The overall increase in residential ARPC is a result of higher video revenue from our CTF Operations and improvements in data services revenue for our legacy operations, partially offset by lower voice services revenue. We expect to improve our video and data subscriber trends for our Frontier legacy and CTF operations. We anticipate continuing declines in voice services revenue as fewer residential customers subscribe to landline voice services. Frontier expects continuing increases in data services revenue, primarily driven by increased broadband subscribers, and continuing declines in voice services revenue.
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
We had approximately 0.5 million and 0.3 million total business customers as of December 31, 2016 and 2015, respectively. Although we added 250,000 total business customers attributable to the CTF Acquisition in 2016, we lost approximately 38,000 business customers, net in 2016, composed of losses in both our legacy markets and in the CTF markets. Average monthly business revenue per customer (business ARPC) decreased $17.16, or 2%, to $673.72 during 2016 as compared to 2015. The business ARPC decrease is primarily attributable to our CTF markets having lower ARPC per SME (small business, medium business and larger enterprise customers) customer and proportionally fewer wholesale customers relative to total business customers as compared to our legacy markets. Frontier expects the declines in voice services revenue and wireless backhaul revenues from business customers to continue in 2017, mitigated, in part, by increases in data services revenue. We have seen modest increases in our revenues from small/medium/enterprise (SME) customers throughout 2016, and our Ethernet product revenues from our SME and carrier customers has grown by 8% for the Frontier legacy operations during 2016.
At December 31, 2016, we had approximately 1.8 million more broadband subscribers than we did at December 31, 2015. We added 2,052,000 subscribers as part of the CTF Acquisition; however, we lost approximately 243,000 net subscribers, primarily due to fewer gross activations and higher customer churn. At December 31, 2016, 57% of our consolidated residential broadband customers subscribed to speeds in excess of our 6 Mbps basic speed tier, up from 29% at December 31, 2015.
We offer video services under the Vantage brand to our customers in Connecticut, South Carolina, Minnesota, and Illinois and under the FiOS(R) brand in California, Texas, and Florida (and on a limited basis in Indiana, Oregon and Washington). We also offer satellite TV video service to our customers under an agency relationship with DISH(R) in all of our markets. During the year, we added 1,165,000 video subscribers in the CTF Acquisition. For the full year, we lost approximately 300,000 net video subscribers across all markets. At December 31, 2016, we had 1.14 million linear video subscribers that are served with FiOS or Vantage video service. In addition to our linear video subscribers, we have 274,000 DISH satellite video customers.2016 REVENUE COMPARED TO 2015 For the Year Ended December 31, 2016 2015 Frontier Legacy (excluding CTF Operations) Consolidated CTF $ Increase % Increase ($ in millions) Amount Operations Amount (Decrease) (Decrease) Amount Voice services $ 2,886 $ 1,077 $ 1,809 $ (213) (11) % $ 2,022 Data and Internet services 3,693 1,366 2,327 (10) (0) % 2,337 Video services 1,244 978 266 (19) (7) % 285 Other 276 26 250 (5) (2) % 255 Customer revenue 8,099 3,447 4,652 (247) (5) % 4,899 Switched access and subsidy 797 175 622 (55) (8) % 677 Total revenue $ 8,896 $ 3,622 $ 5,274 $ (302) (5) % $ 5,576 For the Year Ended December 31, 2016 2015 Frontier Legacy (excluding CTF Operations) Consolidated CTF $ Increase % Increase ($ in millions) Amount Operations Amount (Decrease) (Decrease) Amount Residential $ 4,383 $ 2,092 $ 2,291 $ (141) (6) % $ 2,432 Business 3,716 1,355 2,361 (106) (4) % 2,467 Customer revenue 8,099 3,447 4,652 (247) (5) % 4,899 Switched access and subsidy 797 175 622 (55) (8) % 677 Total revenue $ 8,896 $ 3,622 $ 5,274 $ (302) (5) % $ 5,576
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
We generate revenues primarily through either a monthly recurring fee or a fee based on usage, and revenue recognition is not dependent upon significant judgments by management, with the exception of a determination of a provision for uncollectible amounts.
Consolidated total revenue for 2016 increased $3,320 million to $8,896 million as compared to 2015. Excluding additional revenue of $3,622 million in 2016 attributable to CTF operations, our revenue for 2016 decreased $302 million, or 5%, as compared to 2015. This decline in 2016 is primarily the result of decreases in voice services revenues and lower switched and nonswitched access revenue, partially offset by an increase in data services revenue, each as described in more detail below.
Customer revenue for the year ended December 31, 2016 increased $3,200 million to $8,099 million as compared to 2015. Excluding additional customer revenue of $3,447 million attributable to the CTF Operations, our customer revenue for 2016 decreased $247 million, or 5%, as compared to 2015.
Consolidated residential customer revenue for the year ended December 31, 2016 increased $1,951 million, or 80%, as compared to 2015. Consolidated residential customer revenue for the year ended December 31, 2016 included $2,092 million of revenue attributable to the CTF Operations. Residential customer revenues for our legacy operations for the year ended December 31, 2016 decreased $141 million, or 6%, compared to 2015, primarily as a result of decreases in voice services revenue, partially offset by increases in data services revenue. Similar to other wireline providers, we have experienced declines in the number of traditional voice customers and switched access minutes of use as a result of competition and the availability of substitutes, a trend we expect to continue. The consolidated monthly average revenue per customer (ARPC) for our residential customers increased 21% for the year ended December 31, 2016 as compared to 2015. The overall increase in residential ARPC is a result of higher video revenue from our CTF Operations and improvements in data services revenue for our legacy operations, partially offset by lower voice services revenue.
Consolidated business customer revenue for 2016 increased $1,249 million, or 51%, as compared to 2015. Consolidated business customer revenue for 2016 included $1,355 million of revenue attributable to the CTF Operations. Business customer revenue for our legacy operations declined $106 million, or 4%, as compared to 2015, principally as a result of decreases in our voice services revenue and wireless backhaul revenue. The consolidated ARPC for our business customers decreased 2%, for the year ended December 31, 2016 as compared with 2015. The business ARPC decrease is primarily attributable to our CTF markets having lower ARPC per SME (small business, medium business and larger enterprise customers) customer and proportionally fewer wholesale customers relative to total business customers as compared to our legacy markets.
Consolidated switched access and subsidy revenue of $797 million represented 9% of our revenues for 2016. Switched access revenue was $170 million in 2016, or 2% of our revenues, down from $177 million, or 3% of our revenues, in 2015. The Report and Order released by the FCC on November 18, 2011 (the 2011 Order) provided for the gradual elimination of terminating traffic charges by 2017 with a related decline in operating expenses. Switched access revenue declined sequentially in the third quarter of 2016, reflecting the rate reductions mandated by the 2011 Order, and we anticipate that we have experienced nearly all of the rate decline related to the 2011 Order. We have been able to recover a significant portion of these lost revenues through end user rates and other replacement support mechanisms, a trend we expect will continue throughout 2017. We expect declining revenue trends in switched access revenue to continue in 2017 in our legacy operations. Subsidy revenue, including CAF Phase II subsidies, was $626 million in 2016, or 7% of our revenues, which increased from $500 million, or 9% of our revenues, in 2015.
We categorize our products, services and other revenues among the following five categories:
Voice services include traditional local and long distance wireline services, data-based Voice over Internet Protocol (VoIP) services, as well as voice messaging services offered to our residential and business customers. Voice services also include the long distance voice origination and termination services that we provide to our business customers and other carriers.
Voice services revenue for 2016 decreased as compared with 2015, primarily due to the continued loss of voice customers and, to a lesser extent, decreases in individual feature packages, as well as long distance revenue among those customers that do not have a bundled long distance plan, partially offset by increased local voice charges to residential and business end users.
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Data and Internet Services
Data and Internet services include broadband services for residential and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits ("nonswitched access") including services to wireless providers ("wireless backhaul"). In addition, we offer our Frontier Secure suite of products, including computer security, cloud backup and sharing, identity protection and equipment insurance. Frontier Secure also provides technical support services for businesses.
Data and Internet services revenue for 2016 decreased as compared with 2015. Data services revenues for 2016 increased $45 million, or 3%, primarily due to higher Frontier Secure revenues. Nonswitched access revenues decreased $55 million, or 6%, primarily due to lower monthly recurring revenues for wireless backhaul and other carrier services. We expect wireless data usage to continue to increase, which may drive the need for additional wireless backhaul capacity. Despite the need for additional capacity, in the near term, we anticipate that our overall wireless backhaul revenues (which comprise approximately 3% of our total revenues) will continue to be subject to decline in 2017, as our carrier customers migrate to Ethernet solutions at lower price points or migrate to our competitors.
Video services include revenues generated from services provided directly to residential customers through the FiOS video and Vantage video brands, and through DISH satellite TV services.
Video services for 2016 decreased primarily due to a decrease in the total number of video subscribers.
Other customer revenue includes sales of customer premise equipment to our business customers and directory services, less our provision for bad debts.
Other revenues for 2016 decreased primarily due to lower directory services revenue.
Switched Access and Subsidy
Switched access and subsidy revenues include revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long distance voice traffic ("switched access"). These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies. We also receive cost subsidies from state and federal authorities, including the Connect America Fund.
Switched access and subsidy revenue for 2016 decreased as compared to 2015. Subsidy revenues decreased $16 million, or 3% in 2016, primarily attributable to the one-time true-up payments and phasedown support recognized in 2015 in connection with the CAF Phase II program. Switched access revenue decreased $39 million, or 22%, in 2016 primarily due to the impact of the decline in minutes of use related to access line losses and the displacement of minutes of use by wireless and other communications services, combined with the lower rates enacted by the FCC's intercarrier compensation.
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES2016 OPERATING EXPENSES COMPARED TO 2015 NETWORK ACCESS EXPENSE For the Year Ended December 31, 2016 2015 Frontier Legacy (excluding CTF Operations) Consolidated CTF $ Increase % Increase ($ in millions) Amount Operations Amount (Decrease) (Decrease) Amount Network access expenses $ 1,470 $ 852 $ 618 $ (22) (3) % $ 640
Network access expenses include access charges and other third-party costs directly attributable to connecting customer locations to our network and video content costs. Such access charges and other third-party costs exclude network related expenses, depreciation and amortization, and employee related expenses.
Network access expenses for 2016 decreased in our legacy markets, primarily due to lower long distance costs and video content costs as a result of a decline in video customers, partially offset by increases in customer premise equipment costs, pole and conduit rental expense, and Frontier Secure costs.NETWORK RELATED EXPENSES For the Year Ended December 31, 2016 2015 Frontier Legacy (excluding CTF Operations) Consolidated CTF $ Increase % Increase ($ in millions) Amount Operations Amount (Decrease) (Decrease) Amount Network related expenses $ 1,887 $ 623 $ 1,264 $ (23) (2) % $ 1,287
Network related expenses include expenses associated with the delivery of services to customers and the operation and maintenance of our network, such as facility rent, utilities, maintenance and other costs, as well as salaries, wages and related benefits associated with personnel who are responsible for the delivery of services, operation and maintenance of our network.
Network related expenses for 2016 decreased due to lower compensation costs, primarily related to decreased employee headcount, and certain benefits, including incentive compensation, pension and OPEB expense (as discussed below), and a reduction in rental costs for vehicles under operating leases that were modified during 2016, resulting in the classification as capital leases.SELLING, GENERAL AND ADMINISTRATIVE EXPENSES For the Year Ended December 31, 2016 2015 Frontier Legacy (excluding CTF Operations) Consolidated CTF $ Increase % Increase ($ in millions) Amount Operations Amount (Decrease) (Decrease) Amount
Mar 01, 2017
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