----

| x   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------------|-----------------------------------------------------------------------------------------|

|  ̈   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------------|------------------------------------------------------------------------------------------|

| Delaware                                 |   | 06-0619596                           |
|------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of          |   | (I.R.S. Employer Identification No.) |
| incorporation or organization)           |   |                                 |
|                                     |   |                                 |
| 3 High Ridge Park                        |   |                                 |
| Stamford, Connecticut     |   | 06905                                |
| (Address of principal executive offices) |   | (Zip Code)                           |
|                                     |   |                                 |

----

|                                                                                                                                                                                                                             | Page No. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Part I.  Financial Information (Unaudited)                                                                                                                                                                             |     |
|                                                                                                                                                                                                                             |     |
| Item 1.  Financial Statements                                                                                                                                                                                          |     |
|                                                                                                                                                                                                                             |     |
|      Consolidated Balance Sheets as of September 30, 2012 and December 31, 2011                                                                                                                         | 2        |
|                                                                                                                                                                                                                             |     |
|      Consolidated Statements of Operations for the three and nine months ended September 30, 2012 and 2011                                                                                              | 3        |
|                                                                                                                                                                                                                             |     |
|      Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2012 and 2011                                                                                    |  3  |
|                                                                                                                                                                                                                             |     |
|      Consolidated Statements of Equity for the nine months ended September 30, 2011, the three months     ended December 31, 2011 and the nine months ended September 30, 2012 |  4  |
|                                                                                                                                                                                                                             |     |
|      Consolidated Statements of Cash Flows for the nine months ended September 30, 2012 and 2011                                                                                                        | 5        |
|                                                                                                                                                                                                                             |     |
|      Notes to Consolidated Financial Statements                                                                                                                                                         | 6        |
|                                                                                                                                                                                                                             |     |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                   | 21       |
|                                                                                                                                                                                                                             |     |
| Item 3.  Quantitative and Qualitative Disclosures about Market Risk                                                                                                                                                    | 39       |
|                                                                                                                                                                                                                             |     |
| Item 4.  Controls and Procedures                                                                                                                                                                                       | 40       |
|                                                                                                                                                                                                                             |     |
| Part II.  Other Information                                                                                                                                                                                            |     |
|                                                                                                                                                                                                                             |     |
| Item 1.  Legal Proceedings                                                                                                                                                                                             | 41       |
|                                                                                                                                                                                                                             |     |
| Item 1A.  Risk Factors                                                                                                                                                                                                 | 41       |
|                                                                                                                                                                                                                             |     |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                   | 41       |
|                                                                                                                                                                                                                             |     |
| Item 4.  Mine Safety Disclosure                                                                                                                                                                                        | 42       |
|                                                                                                                                                                                                                             |     |
| Item 6.  Exhibits                                                                                                                                                                                                      | 43       |
|                                                                                                                                                                                                                             |     |
| Signature                                                                                                                                                                                                                        | 44       |
|                                                                                                                                                                                                                             |     |

----

|                                                                        |   | (Unaudited)        |       |   |              |   |
|-----------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                        |   | September 30, 2012 |       |   | December 31, 2011 |   |
| ASSETS                                                                      |   |               |       |   |              |   |
| Current assets:                                                             |   |               |       |   |              |   |
| Cash and cash equivalents                                                   |   | $                  | 1,099,489  |   |              | $      | 326,094 |   |
| Accounts receivable, less allowances of $107,725 and $107,048, respectively |   |               | 557,573    |   |              |   | 585,157 |   |
| Prepaid expenses                                                            |   |               | 69,595     |   |              |   | 63,422 |   |
| Restricted cash                                                             |   |               | 54,967     |   |              |   | - |   |
| Income taxes and other current assets                                       |   |               | 347,602    |   |              |   | 264,357 |   |
| Total current assets                                                        |   |               | 2,129,226  |   |              |   | 1,239,030 |   |
|                                                                        |   |               |       |   |              |   |   |   |
| Restricted cash                                                             |   |               | 42,357     |   |              |   | 144,680 |   |
| Property, plant and equipment, net                                          |   |               | 7,482,900  |   |              |   | 7,547,523 |   |
| Goodwill                                                                    |   |               | 6,337,719  |   |              |   | 6,337,719 |   |
| Other intangibles, net                                                      |   |               | 1,630,965  |   |              |   | 1,964,505 |   |
| Other assets                                                                |   |               | 215,319    |   |              |   | 196,311 |   |
| Total assets                                                                |   | $                  | 17,838,486 |   |              | $      | 17,429,768 |   |
|                                                                        |   |               |       |   |              |   |   |   |
| LIABILITIES AND EQUITY                                                      |   |               |       |   |              |   |   |   |
| Current liabilities:                                                        |   |               |       |   |              |   |   |   |
| Long-term debt due within one year                                          |   | $                  | 596,545    |   |              | $      | 94,016 |   |
| Accounts payable                                                            |   |               | 322,811    |   |              |   | 519,548 |   |
| Advanced billings                                                           |   |               | 147,228    |   |              |   | 152,784 |   |
| Accrued other taxes                                                         |   |               | 83,995     |   |              |   | 64,392 |   |
| Accrued interest                                                            |   |               | 217,525    |   |              |   | 169,340 |   |
| Other current liabilities                                                   |   |               | 152,882    |   |              |   | 152,136 |   |
| Total current liabilities                                                   |   |               | 1,520,986  |   |              |   | 1,152,216 |   |
|                                                                        |   |               |       |   |              |   |   |   |
| Deferred income taxes                                                       |   |               | 2,608,051  |   |              |   | 2,458,018 |   |
| Pension and other postretirement benefits                                   |   |               | 923,634    |   |              |   | 918,701 |   |
| Other liabilities                                                           |   |               | 224,816    |   |              |   | 225,858 |   |
| Long-term debt                                                              |   |               | 8,257,599  |   |              |   | 8,205,841 |   |
|                                                                        |   |               |       |   |              |   |   |   |
| Equity:                                                                     |   |               |       |   |              |   |   |   |
| Shareholders' equity of Frontier:                                           |   |               |       |   |              |   |   |   |
| Common stock, $0.25 par value (1,750,000,000 authorized shares,             |   |               |       |   |              |   |   |   |
| 998,453,000 and 995,128,000 outstanding, respectively, and                  |   |               |       |   |              |   |   |   |
| 1,027,986,000 issued, at September 30, 2012 and December 31, 2011)          |   |               | 256,997    |   |              |   | 256,997 |   |
| Additional paid-in capital                                                  |   |               | 4,735,516  |   |              |   | 4,773,383 |   |
| Retained earnings                                                           |   |               | 38,931     |   |              |   | 226,721 |   |
| Accumulated other comprehensive loss, net of tax                            |   |               | (374,821   | )      |              |   | (386,963 | ) |
| Treasury stock                                                              |   |               | (368,578   | )      |              |   | (415,001 | ) |
| Total shareholders' equity of Frontier                                      |   |               | 4,288,045  |   |              |   | 4,455,137 |   |
| Noncontrolling interest in a partnership                                    |   |               | 15,355     |   |              |   | 13,997 |   |
| Total equity                                                                |   |               | 4,303,400  |   |              |   | 4,469,134 |   |
| Total liabilities and equity                                                |   | $                  | 17,838,486 |   |              | $      | 17,429,768 |   |
|                                                                        |   |               |       |   |              |   |   |   |

----

|                                                                      |   | For the three months ended |      |   | For the nine months ended |   |
|---------------------------------------------------------------------------|--------|----------------------------|-----------|--------|---------------------------|--------|
|                                                                      |   | September 30,              |      |   | September 30,             |   |
|                                                                      |   | 2012                       |      |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |
| Revenue                                                                   |   | $                          | 1,252,469 |   |                      | $      | 1,290,939 |   |   | $ | 3,779,300 |   |   | $ | 3,959,891 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                       |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Network access expenses                                                   |   |                       | 102,051   |   |                      |   | 119,941 |   |   |   | 333,053 |   |   |   | 397,854 |   |
| Other operating expenses                                                  |   |                       | 572,348   |   |                      |   | 571,388 |   |   |   | 1,663,842 |   |   |   | 1,729,824 |   |
| Depreciation and amortization                                             |   |                       | 298,416   |   |                      |   | 351,907 |   |   |   | 962,763 |   |   |   | 1,062,150 |   |
| Integration costs                                                         |   |                       | 4,458     |   |                      |   | 67,412 |   |   |   | 68,204 |   |   |   | 100,899 |   |
| Total operating expenses                                                  |   |                       | 977,273   |   |                      |   | 1,110,648 |   |   |   | 3,027,862 |   |   |   | 3,290,727 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                          |   |                       | 275,196   |   |                      |   | 180,291 |   |   |   | 751,438 |   |   |   | 669,164 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Investment income (loss)                                                  |   |                       | 323       |   |                      |   | (666 | ) |   |   | 12,417 |   |   |   | 2,624 |   |
| Losses on early extinguishment of debt                                    |   |                       | (245      | )      |                      |   | - |   |   |   | (71,063 | ) |   |   | - |   |
| Other income (loss), net                                                  |   |                       | 4,279     |   |                      |   | 1,502 |   |   |   | 6,577 |   |   |   | 7,415 |   |
| Interest expense                                                          |   |                       | 172,188   |   |                      |   | 165,755 |   |   |   | 509,104 |   |   |   | 500,034 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                |   |                       | 107,365   |   |                      |   | 15,372 |   |   |   | 190,265 |   |   |   | 179,169 |   |
| Income tax expense (benefit)                                              |   |                       | 35,739    |   |                      |   | (6,948 | ) |   |   | 66,150 |   |   |   | 66,809 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                |   |                       | 71,626    |   |                      |   | 22,320 |   |   |   | 124,115 |   |   |   | 112,360 |   |
| Less: Income attributable to the noncontrolling interest in a partnership |   |                       | 4,626     |   |                      |   | 1,925 |   |   |   | 12,358 |   |   |   | 4,993 |   |
| Net income attributable to common shareholders of Frontier                |   | $                          | 67,000    |   |                      | $      | 20,395 |   |   | $ | 111,757 |   |   | $ | 107,367 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net income per share attributable to common             |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| shareholders of Frontier                                                  |   | $                          | 0.07      |   |                      | $      | 0.02 |   |   | $ | 0.11 |   |   | $ | 0.11 |   |
|                                                                      |   |                       |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |

|                                                  |   | For the three months ended |   |   | For the nine months ended |   |
|-------------------------------------------------------|--------|----------------------------|--------|--------|---------------------------|--------|
|                                                  |   | September 30,              |   |   | September 30,             |   |
|                                                  |   | 2012                       |   |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
|                                                  |   |                       |   |   |                      |   |   |   |   |   |   |   |
| Net income                                            |   | $                          | 71,626 |   |                      | $      | 22,320 |   |   | $ | 124,115 |   |   | $ | 112,360 |   |
| Other comprehensive income, net                       |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    of tax (see Note 15)                |   |                       | 2,308  |   |                      |   | 3,334 |   |   |   | 12,142 |   |   |   | 8,324 |   |
| Comprehensive income                                  |   |                       | 73,934 |   |                      |   | 25,654 |   |   |   | 136,257 |   |   |   | 120,684 |   |
|                                                  |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Comprehensive income                 |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    attributable to the noncontrolling  |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    interest in a partnership           |   |                       | (4,626 | )      |                      |   | (1,925 | ) |   |   | (12,358 | ) |   |   | (4,993 | ) |
|                                                  |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to                  |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    the common shareholders of Frontier |   | $                          | 69,308 |   |                      | $      | 23,729 |   |   | $ | 123,899 |   |   | $ | 115,691 |   |
|                                                  |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |

|                            |   | Frontier Shareholders |      |   |    |   |    |       |   |
|---------------------------------|--------|-----------------------|-----------|--------|---------|--------|---------|------------|--------|
|                            |   |                  |      |   |    |   |    |       |   |   |   |   |   |   Accumulated |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |                  |      |   |    |   |    | Additional |   |   |   |   |   | Other |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   | Common Stock          |      |   | Paid-In |   |    | Retained   |   |   | Comprehensive |   |   | Treasury Stock |   |   | Noncontrolling |   |   | Total |   |
|                            |   | Shares                |      |   | Amount  |   |    | Capital    |   |   | Earnings |   |   | Loss |   |   | Shares |   |   | Amount |   |   | Interest |   |   | Equity |   |
|                            |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance January 1, 2011         |   |                  | 1,027,986 |   |    | $      | 256,997 |       |   | $ | 5,525,471 |   |   | $ | 77,107 |   |   | $ | (229,549 | ) |   |   | (34,131 | ) |   | $ | (433,286 | ) |   | $ | 13,003 |   |   | $ | 5,209,743 |   |
| Stock plans                     |   |                  | -         |   |    |   | -       |       |   |   | (9,325 | ) |   |   | - |   |   |   | - |   |   |   | 1,282 |   |   |   | 18,289 |   |   |   | - |   |   |   | 8,964 |   |
| Dividends on common stock       |   |                  | -         |   |    |   | -       |       |   |   | (559,803 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (559,803 | ) |
| Net income                      |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | 107,367 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,993 |   |   |   | 112,360 |   |
| Other comprehensive income, net |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of tax              |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | 8,324 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,324 |   |
| Distributions                   |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,000 | ) |   |   | (3,000 | ) |
| Balance September 30, 2011      |   |                  | 1,027,986 |   |    |   | 256,997 |       |   |   | 4,956,343 |   |   |   | 184,474 |   |   |   | (221,225 | ) |   |   | (32,849 | ) |   |   | (414,997 | ) |   |   | 14,996 |   |   |   | 4,776,588 |   |
| Stock plans                     |   |                  | -         |   |    |   | -       |       |   |   | 3,624 |   |   |   | - |   |   |   | - |   |   |   | (9 | ) |   |   | (4 | ) |   |   | - |   |   |   | 3,620 |   |
| Dividends on common stock       |   |                  | -         |   |    |   | -       |       |   |   | (186,584 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (186,584 | ) |
| Net income                      |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | 42,247 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,001 |   |   |   | 45,248 |   |
| Other comprehensive income, net |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of tax              |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | (165,738 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (165,738 | ) |
| Distributions                   |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,000 | ) |   |   | (4,000 | ) |
| Balance December 31, 2011       |   |                  | 1,027,986 |   |    |   | 256,997 |       |   |   | 4,773,383 |   |   |   | 226,721 |   |   |   | (386,963 | ) |   |   | (32,858 | ) |   |   | (415,001 | ) |   |   | 13,997 |   |   |   | 4,469,134 |   |
| Stock plans                     |   |                  | -         |   |    |   | -       |       |   |   | (37,867 | ) |   |   | - |   |   |   | - |   |   |   | 3,325 |   |   |   | 46,423 |   |   |   | - |   |   |   | 8,556 |   |
| Dividends on common stock       |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | (299,547 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (299,547 | ) |
| Net income                      |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | 111,757 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,358 |   |   |   | 124,115 |   |
| Other comprehensive income, net |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of tax              |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | 12,142 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12,142 |   |
| Distributions                   |   |                  | -         |   |    |   | -       |       |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,000 | ) |   |   | (11,000 | ) |
| Balance September 30, 2012      |   |                  | 1,027,986 |   |    | $      | 256,997 |       |   | $ | 4,735,516 |   |   | $ | 38,931 |   |   | $ | (374,821 | ) |   |   | (29,533 | ) |   | $ | (368,578 | ) |   | $ | 15,355 |   |   | $ | 4,303,400 |   |
|                            |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |                  |      |   |    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                  |   | 2012   |      |   | 2011   |   |
|-----------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                  |   |   |      |   |   |   |
| Cash flows provided by (used in) operating activities:                |   |   |      |   |   |   |
| Net income                                                            |   | $      | 124,115   |   |   | $      | 112,360 |   |
| Adjustments to reconcile net income to net cash provided by           |   |   |      |   |   |   |   |   |
|    operating activities:                               |   |   |      |   |   |   |   |   |
| Depreciation and amortization expense                                 |   |   | 962,763   |   |   |   | 1,062,150 |   |
| Stock based compensation expense                                      |   |   | 12,950    |   |   |   | 10,729 |   |
| Pension/OPEB costs                                                    |   |   | 24,220    |   |   |   | 22,515 |   |
| Losses on early extinguishment of debt                                |   |   | 71,063    |   |   |   | - |   |
| Other non-cash adjustments                                            |   |   | 7,040     |   |   |   | (3,320 | ) |
| Deferred income taxes                                                 |   |   | 59,794    |   |   |   | 20,219 |   |
| Change in accounts receivable                                         |   |   | 19,941    |   |   |   | 16,162 |   |
| Change in accounts payable and other liabilities                      |   |   | (131,027  | )      |   |   | (36,458 | ) |
| Change in prepaid expenses, income taxes and other current assets     |   |   | 9,426     |   |   |   | 68,297 |   |
| Net cash provided by operating activities                             |   |   | 1,160,285 |   |   |   | 1,272,654 |   |
|                                                                  |   |   |      |   |   |   |   |   |
| Cash flows provided from (used by) investing activities:              |   |   |      |   |   |   |   |   |
| Capital expenditures - Business operations                            |   |   | (571,107  | )      |   |   | (636,569 | ) |
| Capital expenditures - Integration activities                         |   |   | (38,768   | )      |   |   | (62,641 | ) |
| Network expansion funded by Connect America Fund                      |   |   | (854      | )      |   |   | - |   |
| Grant funds received for network expansion from Connect America Fund  |   |   | 47,986    |   |   |   | - |   |
| Cash transferred from escrow                                          |   |   | 47,356    |   |   |   | 26,586 |   |
| Other assets purchased and distributions received, net                |   |   | (12,251   | )      |   |   | (4,350 | ) |
| Net cash used by investing activities                                 |   |   | (527,638  | )      |   |   | (676,974 | ) |
|                                                                  |   |   |      |   |   |   |   |   |
| Cash flows provided from (used by) financing activities:              |   |   |      |   |   |   |   |   |
| Long-term debt borrowings                                             |   |   | 1,100,000 |   |   |   | - |   |
| Financing costs paid                                                  |   |   | (22,754   | )      |   |   | - |   |
| Long-term debt payments                                               |   |   | (571,472  | )      |   |   | (78,990 | ) |
| Premium paid to retire debt                                           |   |   | (52,560   | )      |   |   | - |   |
| Dividends paid                                                        |   |   | (299,547  | )      |   |   | (559,803 | ) |
| Repayment of customer advances for construction,                      |   |   |      |   |   |   |   |   |
|    distributions to noncontrolling interests and other |   |   | (12,919   | )      |   |   | (2,333 | ) |
| Net cash provided from (used by) financing activities                 |   |   | 140,748   |   |   |   | (641,126 | ) |
|                                                                  |   |   |      |   |   |   |   |   |
|                                                                  |   |   |      |   |   |   |   |   |
| Increase/(Decrease) in cash and cash equivalents                      |   |   | 773,395   |   |   |   | (45,446 | ) |
| Cash and cash equivalents at January 1,                               |   |   | 326,094   |   |   |   | 251,263 |   |
|                                                                  |   |   |      |   |   |   |   |   |
| Cash and cash equivalents at September 30,                            |   | $      | 1,099,489 |   |   | $      | 205,817 |   |
|                                                                  |   |   |      |   |   |   |   |   |
| Supplemental cash flow information:                                   |   |   |      |   |   |   |   |   |
| Cash paid (received) during the period for:                           |   |   |      |   |   |   |   |   |
| Interest                                                              |   | $      | 445,121   |   |   | $      | 447,645 |   |
| Income taxes (refunds)                                                |   | $      | 4,093     |   |   | $      | (16,247 | ) |
|                                                                  |   |   |      |   |   |   |   |   |
| Non-cash investing and financing activites:                           |   |   |      |   |   |   |   |   |
| Financing obligation for contribution of real property                |   |   |      |   |   |   |   |   |
|      to pension plan                         |   | $      | -         |   |   | $      | 58,100 |   |
| Reduction of pension obligation                                       |   | $      | -         |   |   | $      | (58,100 | ) |
|                                                                  |   |   |      |   |   |   |   |   |

| (1)   | Summary of Significant Accounting Policies: |
|-----------------|---------------------------------------------|

| (a)   | Basis of Presentation and Use of Estimates: |
|-----------------|---------------------------------------------|

| (b)   | Revenue Recognition: |
|-----------------|----------------------|

| (c)   | Goodwill and Other Intangibles: |
|-----------------|---------------------------------|

----

----

|    ($ in thousands)                                             |   | September  30, 2012 |     |   | December 31, 2011 |   |     |
|--------------------------------------------------------------------------------|--------|-------------------------------|----------|--------|-------------------|--------|----------|
|                                                            |   |                          |     |   |              |   |     |   |   |
|     Retail and Wholesale                                   |   | $                        | 624,852  |   |              | $      | 639,842  |   |   |
|     Other                                                  |   |                          | 40,446   |   |              |   | 52,363   |   |   |
|     Less: Allowance for doubtful accounts                  |   |                          | (107,725 | )      |              |   | (107,048 | ) |   |
|          Accounts receivable, net |   | $                             | 557,573  |   |              | $      | 585,157  |   |   |
|                                                                           |   |                          |     |   |              |   |     |   |   |

|    ($ in thousands)                                                       |   | September  30, 2012 |       |   | December 31, 2011 |   |       |
|------------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|-------------------|--------|------------|
|                                                                      |   |                          |       |   |              |   |       |   |   |
|     Property, plant and equipment                                    |   | $                        | 14,133,935 |   |              | $      | 13,638,136 |   |   |
|     Less:  Accumulated depreciation                        |   |                          | (6,651,035 | )      |              |   | (6,090,613 | ) |   |
|          Property, plant and equipment, net |   | $                             | 7,482,900  |   |              | $      | 7,547,523  |   |   |
|                                                                                     |   |                          |       |   |              |   |       |   |   |

----

|    ($ in thousands)                                                 |   | September  30, 2012 |       |   | December 31, 2011 |   |      |
|------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|-------------------|--------|-----------|
|                                                                |   |                          |       |   |              |   |      |   |   |
| Goodwill:                                                                          |   | $                             | 6,337,719  |   |              | $      | 6,337,719 |   |   |
|                                                                               |   |                          |       |   |              |   |      |   |   |
| Other Intangibles:                                                                 |   |                          |       |   |              |   |      |   |   |
|     Customer base                                              |   | $                        | 2,697,763  |   |              | $      | 2,697,413 |   |   |
|     Software licenses                                          |   |                          | 105,019    |   |              |   | 105,019   |   |   |
|     Trade name and license                                     |   |                          | 135,285    |   |              |   | 135,285   |   |   |
|           Other intangibles      |   |                          | 2,938,067  |   |              |   | 2,937,717 |   |   |
|     Less: Accumulated amortization                             |   |                          | (1,307,102 | )      |              |   | (973,212  | ) |   |
|          Total other intangibles, net |   | $                             | 1,630,965  |   |              | $      | 1,964,505 |   |   |
|                                                                               |   |                          |       |   |              |   |      |   |   |

|             | September 30, 2012     |   | December 31, 2011      |
|------------------|------------------------|--------|------------------------|
|             | Carrying               |   |                   |   | Carrying |   |   |
| ($ in thousands) | Amount                 |   | Fair Value             |   | Amount |   | Fair Value |
|             |                   |   |                   |   |   |   |   |
| Long-term debt   | $  8,257,599 |   | $  8,650,919 |   | $  8,205,841 |   | $   7,958,873 |

----

|                                        |   |         |      |   | Nine months ended  |   |     |       |   |   |          |   |
|---------------------------------------------|--------|--------------|-----------|--------|--------------------|--------|----------|------------|--------|--------|---------------|--------|
|                                        |   |         |      |   | September 30, 2012 |   |     |       |   |   | Interest      |   |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   | Rate* at |   |
|                                        |   | December 31, |      |   |               |   |     | New        |   |   | September 30, |   |   | September 30, |   |
| ($ in thousands)                            |   | 2011         |      |   | Payments           |   |     | Borrowings |   |   | 2012          |   |   | 2012 |   |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |
|   Senior Unsecured Debt           |   | $            | 8,325,774 |   |               | $      | (570,691 | )          |   | $      | 1,100,000     |   |   | $ | 8,855,083 |   |   |   | 7.88 | % |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|   Industrial Development          |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|      Revenue Bonds |   |         | 13,550    |   |               |   | -        |       |   |   | -             |   |   |   | 13,550 |   |   |   | 6.33 | % |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|   Rural Utilities Service         |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|     Loan Contracts      |   |         | 10,197    |   |               |   | (781     | )          |   |   | -             |   |   |   | 9,416 |   |   |   | 6.15 | % |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
| TOTAL LONG-TERM DEBT                        |   | $            | 8,349,521 |   |               | $      | (571,472 | )          |   | $      | 1,100,000     |   |   | $ | 8,878,049 |   |   |   | 7.87 | % |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|   Less: Debt Discount             |   |         | (49,664   | )      |               |   |     |       |   |   |          |   |   |   | (23,905 | ) |   |   |   |   |
|   Less: Current Portion           |   |         | (94,016   | )      |               |   |     |       |   |   |          |   |   |   | (596,545 | ) |   |   |   |   |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |
|                                        |   | $            | 8,205,841 |   |               |   |     |       |   |   |          |   |   | $ | 8,257,599 |   |   |   |   |   |
|                                        |   |         |      |   |               |   |     |       |   |   |          |   |   |   |   |   |   |   |   |   |

----

| ($ in thousands)                                             | September 30, 2012 |                  | December 31, 2011 |
|--------------------------------------------------------------|--------------------|-----------------------|-------------------|
|                                                         |               | Principal             |              |   | Interest |   |   |   | Principal |   |   | Interest |   |
|                                                         |               | Outstanding           |              |   | Rate |   |   |   | Outstanding |   |   | Rate |   |
|                                                         |               |                  |              |   |   |   |   |   |   |   |   |   |   |
| Senior Notes and   Debentures Due:            |               |                  |              |   |   |   |   |   |   |   |   |   |   |
|    1/15/2013                                  | $                  |   502,658   |              |   | 6.250% |   |   | $ | 580,724 |   |   | 6.250% |   |
|    5/1/2014                                   |               | 200,000               |              |   | 8.250% |   |   |   | 600,000 |   |   | 8.250% |   |
|    3/15/2015                                  |               | 300,000               |              |   | 6.625% |   |   |   | 300,000 |   |   | 6.625% |   |
|    4/15/2015 *                                |               | 450,500               |              |   | 7.875% |   |   |   | 500,000 |   |   | 7.875% |   |
|    10/14/2016 **                              |               | 531,875               |              |   | 3.095% (Variable) |   |   |   | 575,000 |   |   | 3.175% (Variable) |   |
|    4/15/2017 *                                |               | 1,100,000             |              |   | 8.250% |   |   |   | 1,100,000 |   |   | 8.250% |   |
|    10/1/2018                                  |               | 600,000               |              |   | 8.125% |   |   |   | 600,000 |   |   | 8.125% |   |
|    3/15/2019                                  |               | 434,000               |              |   | 7.125% |   |   |   | 434,000 |   |   | 7.125% |   |
|    4/15/2020                                  |               | 1,100,000             |              |   | 8.500% |   |   |   | 1,100,000 |   |   | 8.500% |   |
|    7/1/2021                                   |               | 500,000               |              |   | 9.250% |   |   |   | - |   |   | - |   |
|    4/15/2022                                  |               | 500,000               |              |   | 8.750% |   |   |   | 500,000 |   |   | 8.750% |   |
|    1/15/2023 *                                |               | 600,000               |              |   | 7.125% |   |   |   | - |   |   | - |   |
|    11/1/2025                                  |               | 138,000               |              |   | 7.000% |   |   |   | 138,000 |   |   | 7.000% |   |
|    8/15/2026                                  |               | 1,739                 |              |   | 6.800% |   |   |   | 1,739 |   |   | 6.800% |   |
|    1/15/2027                                  |               | 345,858               |              |   | 7.875% |   |   |   | 345,858 |   |   | 7.875% |   |
|    8/15/2031                                  |               | 945,325               |              |   | 9.000% |   |   |   | 945,325 |   |   | 9.000% |   |
|    10/1/2034                                  |               | 628                   |              |   | 7.680% |   |   |   | 628 |   |   | 7.680% |   |
|    7/1/2035                                   |               | 125,000               |              |   | 7.450% |   |   |   | 125,000 |   |   | 7.450% |   |
|    10/1/2046                                  |               | 193,500               |              |   | 7.050% |   |   |   | 193,500 |   |   | 7.050% |   |
|                                                         |               |   8,569,083 |              |   |   |   |   |   | 8,039,774 |   |   |   |   |
|                                                         |               |                  |              |   |   |   |   |   |   |   |   |   |   |
| Subsidiary Senior Notes   and Debentures Due: |               |                  |              |   |   |   |   |   |   |   |   |   |   |
|    12/1/2012                                  |               | 36,000                |              |   | 8.050% |   |   |   | 36,000 |   |   | 8.050% |   |
|    2/15/2028                                  |               | 200,000               |              |   | 6.730% |   |   |   | 200,000 |   |   | 6.730% |   |
|    10/15/2029                                 |               | 50,000                |              |   | 8.400% |   |   |   | 50,000 |   |   | 8.400% |   |
|                                                         |               |                  |              |   |   |   |   |   |   |   |   |   |   |
| Total                                                        | $                  | 8,855,083             |              |   | 7.88% |   |   | $ | 8,325,774 |   |   | 7.93% |   |
|                                                         |               |                  |              |   |   |   |   |   |   |   |   |   |   |

----

|                          |   | Principal |
|-------------------------------|--------|-----------|
| ($ in thousands)              |   | Payments  |
|           |   |      |
| 2012 (remaining three months) | $      | 50,470    |
| 2013                          | $      | 560,550   |
| 2014                          | $      | 257,916   |
| 2015                          | $      | 808,442   |
| 2016                          | $      | 345,466   |
| 2017                          | $      | 1,100,501 |

|                                                 |   |   For the three months ended                             |   | For the nine months ended |
|------------------------------------------------------|--------|---------------------------------------------------------------|--------|---------------------------|
|                                                 |   |   September 30,                                          |   |   September 30,      |
|                                                 |   | 2012                                                          |   |                      | 2011 |   |   | 2012 |   | 2011 |
|                                                 |   |                                                          |   |                      |   |   |   |   |   |   |
| Consolidated tax provision at federal statutory rate |   | 35.0%                                                         |   |                      | 35.0% |   |   | 35.0% |   | 35.0% |
| Reversal of tax credits                              |   |           - |   |                      |           - |   |   |           - |   |           5.9 |
| State income tax provisions, net of federal income   |   |                                                          |   |                      |   |   |   |   |   |   |
|     tax benefit                  |   |         4.5           |   |                      |         9.6 |   |   |         3.7 |   |           3.8 |
| Tax reserve adjustment                               |   |       (7.1)                     |   |                      |     (91.2) |   |   |       (4.0) |   |         (8.1) |
| All other, net                                       |   |         0.9           |   |                      |         1.4 |   |   |         0.1 |   |           0.7 |
| Effective tax rate                                   |   | 33.3%                                                         |   |                      | (45.2%) |   |   | 34.8% |   | 37.3% |
|                                                 |   |                                                          |   |                      |   |   |   |   |   |   |

----

|                                                                 |   | For the three months ended |    |   | For the nine months ended |   |
|----------------------------------------------------------------------|--------|----------------------------|---------|--------|---------------------------|--------|
| ($ and shares in thousands, except per share amounts)                |   | September 30,              |    |   | September 30,             |   |
|                                                                 |   | 2012                       |    |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
| Net income used for basic and diluted earnings                       |   |                       |    |   |                      |   |   |   |   |   |   |   |
|    per common share:                                  |   |                       |    |   |                      |   |   |   |   |   |   |   |
| Net income attributable to common shareholders of Frontier           |   | $                          | 67,000  |   |                      | $      | 20,395 |   |   | $ | 111,757 |   |   | $ | 107,367 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Less:  Dividends paid on unvested restricted stock awards  |   |                       | (717    | )      |                      |   | (914 | ) |   |   | (2,189 | ) |   |   | (2,835 | ) |
| Total basic and diluted net income attributable to common            |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    shareholders of Frontier                           |   | $                          | 66,283  |   |                      | $      | 19,481 |   |   | $ | 109,568 |   |   | $ | 104,532 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per common share:                                     |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total weighted average shares and unvested restricted stock awards   |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    outstanding - basic                                |   |                       | 998,488 |   |                      |   | 995,188 |   |   |   | 997,437 |   |   |   | 994,642 |   |
| Less:  Weighted average unvested restricted stock awards   |   |                       | (7,193  | )      |                      |   | (4,929 | ) |   |   | (7,137 | ) |   |   | (4,917 | ) |
| Total weighted average shares outstanding - basic                    |   |                       | 991,295 |   |                      |   | 990,259 |   |   |   | 990,300 |   |   |   | 989,725 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share attributable to common shareholders of Frontier |   | $                          | 0.07    |   |                      | $      | 0.02 |   |   | $ | 0.11 |   |   | $ | 0.11 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per common share:                                   |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total weighted average shares outstanding - basic                    |   |                       | 991,295 |   |                      |   | 990,259 |   |   |   | 990,300 |   |   |   | 989,725 |   |
| Effect of dilutive shares                                            |   |                       | 163     |   |                      |   | 535 |   |   |   | 667 |   |   |   | 1,478 |   |
| Effect of dilutive stock units                                       |   |                       | -       |   |                      |   | 490 |   |   |   | - |   |   |   | 490 |   |
| Total weighted average shares outstanding - diluted                  |   |                       | 991,458 |   |                      |   | 991,284 |   |   |   | 990,967 |   |   |   | 991,693 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income per share attributable to common shareholders of Frontier |   | $                          | 0.07    |   |                      | $      | 0.02 |   |   | $ | 0.11 |   |   | $ | 0.11 |   |
|                                                                 |   |                       |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                          |                       |            |   |                                                                                       | Weighted         |                    |       |       |
|-------------------------------|----------------------------|-----------------|--------|--------------------------------------------------------------------------------------------|------------------|-------------------------|------------|------------|
|                          |                       |            |   |                                                                                       | Average          |                    |       |       |
|                          |                       |  Number of |   |                                                                                       |  Grant Date |                    |       | Aggregate  |
|                          |                       |  Shares    |   |                                                                                       |  Fair Value |                    |       | Fair Value |
| Balance at January 1, 2012    | 4,847,000                  |            |   | $               8.40 | $                |    24,962,000 |       |
|                          | Restricted stock granted   | 3,941,000       |   | $                                                                                          | 4.17             |                    | $          | 19,390,000 |
|                          | Restricted stock vested    | (1,332,000)     |   | $                                                                                          | 8.84             |                    | $          | 6,554,000  |
|                          | Restricted stock forfeited | (289,000)       |   | $                                                                                          | 6.08             |                    |       |       |
| Balance at September 30, 2012 | 7,167,000                  |            | $      | 6.09                                                                                       |             | $                       | 35,259,000 |

----

|                              |                                  |             |   |   | Weighted           |   | Weighted            |   |   |        |
|-----------------------------------|---------------------------------------|------------------|--------|--------|--------------------|--------|---------------------|--------|--------|-------------|
|                              |                                  | Shares           |   |   | Average            |   | Average             |   |   | Aggregate   |
|                              |                                  |  Subject to |   |   |  Option Price |   |  Remaining     |   |   | Intrinsic   |
|                              |                                  |  Option     |   |   |  Per Share    |   |  Life in Years |   |   |  Value |
| Balance at January 1, 2012        | 895,000                               |             | $      | 9.94   |               | 1.3    |                | $      | -      |
|                              | Options granted                       | -                |   | $      | -                  |   |                |   |   |        |
|                              | Options exercised                     | -                |   | $      | -                  |   |                |   |   |        |
|                              | Options canceled, forfeited or lapsed | (355,000)        |   | $      | 8.35               |   |                |   |   |        |
| Balance at September 30, 2012     | 540,000                               |             | $      | 11.00  |               | 1.1    |                | $      | -      |
|                              |                                  |             |   |   |               |   |                |   |   |        |
| Exercisable at September 30, 2012 | 540,000                               |             | $      | 11.00  |               | 1.1    |                | $      | -      |
|                              |                                  |             |   |   |               |   |                |   |   |        |

|                                                         |   | For the three months ended September 30, |   |   | For the nine months ended September 30, |   |
|--------------------------------------------------------------|--------|------------------------------------------|--------|--------|-----------------------------------------|--------|
| ($ in thousands)                                             |   | 2012                                     |   |   | 2011                                    |   |   | 2012 |   |   | 2011 |   |
|                                                         |   |                                     |   |   |                                    |   |   |   |   |   |   |   |
| Interest and dividend income                                 |   | $                                        | 323    |   |                                    | $      | 87 |   |   | $ | 3,159 |   |   | $ | 2,971 |   |
| Investment gain                                              |   |                                     | -      |   |                                    |   | - |   |   |   | 9,780 |   |   |   | 1,071 |   |
| Equity earnings (loss)                                       |   |                                     | -      |   |                                    |   | (753 | ) |   |   | (522 | ) |   |   | (1,418 | ) |
|      Total investment income (loss) |   | $                                        | 323    |   |                                    | $      | (666 | ) |   | $ | 12,417 |   |   | $ | 2,624 |   |
|                                                         |   |                                     |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                   |   | For the three months ended September 30, |   |   | For the nine months ended September 30, |   |
|--------------------------------------------------------|--------|------------------------------------------|--------|--------|-----------------------------------------|--------|
| ($ in thousands)                                       |   | 2012                                     |   |   | 2011                                    |   |   | 2012 |   |   | 2011 |   |
|                                                   |   |                                     |   |   |                                    |   |   |   |   |   |   |   |
| Gain on expiration/settlement of customer advances     |   | $                                        | 4,335  |   |                                    | $      | 1,268 |   |   | $ | 7,798 |   |   | $ | 7,605 |   |
| All other, net                                         |   |                                     | (56    | )      |                                    |   | 234 |   |   |   | (1,221 | ) |   |   | (190 | ) |
|     Total other income (loss), net |   | $                                        | 4,279  |   |                                    | $      | 1,502 |   |   | $ | 6,577 |   |   | $ | 7,415 |   |
|                                                   |   |                                     |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |

|                                     |   | September 30, |     |   | December 31, |   |
|------------------------------------------|--------|---------------|----------|--------|--------------|--------|
| ($ in thousands)                         |   | 2012          |     |   | 2011         |   |
|                                     |   |          |     |   |         |   |
| Pension costs                            |   | $             | 552,895  |   |         | $      | 575,163 |   |
| Postretirement costs                     |   |          | 43,709   |   |         |   | 41,811 |   |
| Deferred taxes on pension and OPEB costs |   |          | (221,931 | )      |         |   | (230,161 | ) |
| All other                                |   |          | 148      |   |         |   | 150 |   |
|                                     |   | $             | 374,821  |   |         | $      | 386,963 |   |
|                                     |   |          |     |   |         |   |   |   |

|                                               |   |  For the three months ended September 30, |   |
|----------------------------------------------------|--------|------------------------------------------------|--------|
|                                               |   |  2012                                     |   |   |  2011 |   |
|                                               |   | Before-Tax                                     |   |   | Tax Expense/ |   | Net-of-Tax |   |   | Before-Tax |   |   | Tax Expense/ |   |   | Net-of-Tax |   |
| ($ in thousands)                                   |   | Amount                                         |   |   | (Benefit) |   |   | Amount |   |   | Amount |   |   | (Benefit) |   |   | Amount |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of pension and postretirement costs - |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    other comprehensive income       |   | $                                              | 6,080  |   |   | $ | 3,772 |   |   | $ | 2,308 |   |   | $ | 3,334 |   |   | $ | - |   |   | $ | 3,334 |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                               |   |  For the nine months ended September 30,  |   |
|                                               |   |  2012                                     |   |   |  2011 |   |
|                                               |   | Before-Tax                                     |   |   | Tax Expense/ |   | Net-of-Tax |   |   | Before-Tax |   |   | Tax Expense/ |   |   | Net-of-Tax |   |
|                                               |   | Amount                                         |   |   | (Benefit) |   |   | Amount |   |   | Amount |   |   | (Benefit) |   |   | Amount |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of pension and postretirement costs   |   | $                                              | 20,370 |   |   | $ | 8,228 |   |   | $ | 12,142 |   |   | $ | 10,003 |   |   | $ | 1,199 |   |   | $ | 8,804 |   |
| All other                                          |   |                                           | -      |   |   |   | - |   |   |   | - |   |   |   | (480 | ) |   |   | - |   |   |   | (480 | ) |
|    Other comprehensive income       |   | $                                              | 20,370 |   |   | $ | 8,228 |   |   | $ | 12,142 |   |   | $ | 9,523 |   |   | $ | 1,199 |   |   | $ | 8,324 |   |
|                                               |   |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                   |   | Pension Benefits                         |                                                                         |   |   Pension Benefits           |
|--------------------------------------------------------|--------|------------------------------------------|------------------------------------------------------------------------------|--------|----------------------------------------|
|                                                   |   |     For the three months ended |                                                                         |   |    For the nine months ended |
|                                                   |   |    September 30,               |                                                                         |   |    September 30,             |
|                                                   |   |                                     | 2012                                                                         |   |                                   | 2011 |   |   |   | 2012 |   |   | 2011 |
| ($ in thousands)                                       |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
| Components of net periodic pension benefit cost        |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
| Service cost                                           |   | $                                        | 11,782                                                                       |   | $                                      | 9,615 |   |   | $ | 32,766 |   | $  |      28,844 |
| Interest cost on projected benefit obligation          |   |                                     |        19,204                             |   |                                   |        21,172 |   |   |   |        58,520 |   |   |         63,516 |
| Expected return on plan assets                         |   |                                     |      (23,655)                                       |   |                                   |      (25,589) |   |   |   |      (71,833) |   |   |       (76,766) |
| Amortization of prior service cost /(credit)           |   |                                     |             (50) |   |                                   |             (50) |   |   |   |           (150) |   |   |            (150) |
| Amortization of unrecognized loss                      |   |                                     |          6,845                  |   |                                   |          4,435 |   |   |   |        22,419 |   |   |         13,306 |
| Net periodic pension benefit cost                      |   | $                                        | 14,126                                                                       |   | $                                      | 9,583 |   |   | $ | 41,722 |   | $  |       28,750 |
|                                                   |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
|                                                   |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
|                                                   |   | Postretirement Benefits                  |                                                                         |   |   Postretirement Benefits         |
|                                                   |   | Other Than Pensions (OPEB)               |                                                                         |   |   Other Than Pensions (OPEB)      |
|                                                   |   |   For the three months ended        |                                                                         |   |  For the nine months ended        |
|                                                   |   |   September 30,                     |                                                                         |   |                                   | September 30, |
|                                                   |   |                                     | 2012                                                                         |   |                                   | 2011 |   |   |   | 2012 |   |   | 2011 |
| ($ in thousands)                                       |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
| Components of net periodic postretirement benefit cost |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |
| Service cost                                           |   | $                                        | 2,999                                                                        |   | $                                      | 4,206 |   |   | $ | 8,109 |   | $  |      12,662 |
| Interest cost on projected benefit obligation          |   |                                     |          4,462                  |   |                                   |          5,986 |   |   |   |        13,382 |   |   |         18,642 |
| Expected return on plan assets                         |   |                                     |             (19) |   |                                   |             (79) |   |   |   |           (129) |   |   |            (242) |
| Amortization of prior service cost/(credit)            |   |                                     |        (2,545)                            |   |                                   |        (2,552) |   |   |   |        (7,551) |   |   |         (7,651) |
| Amortization of unrecognized loss                      |   |                                     |          1,830                  |   |                                   |             607 |   |   |   |          5,652 |   |   |           3,604 |
| Net periodic postretirement benefit cost               |   | $                                        | 6,727                                                                        |   | $                                      | 8,168 |   |   | $ | 19,463 |   | $  |       27,015 |
|                                                   |   |                                     |                                                                         |   |                                   |   |   |   |   |   |   |   |   |

----

----

| (18) Subsequent Events: |
|-------------------------|

----

| ·   | The risk that the growth opportunities from the Transaction may not be fully realized or may take longer to realize than expected; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of greater than anticipated competition requiring new pricing, marketing strategies or new product or service offerings and the risk that we will not respond on a timely or profitable basis; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reductions in the number of our voice customers that cannot be offset by increases in broadband subscribers and sales of other products and services; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of competition from cable, wireless and other wireline carriers; |
|--------------------|------------------------------------------------------------------------------|

| ·   | Our ability to maintain relationships with customers, employees or suppliers; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | The effects of ongoing changes in the regulation of the communications industry as a result of federal and state legislation and regulation, or changes in the enforcement or interpretation of such legislation and regulation; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of any unfavorable outcome with respect to any current or future legal, governmental or regulatory proceedings, audits or disputes; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of changes in the availability of federal and state universal funding to us and our competitors; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to adjust successfully to changes in the communications industry and to implement strategies for growth; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Continued reductions in switched access revenues as a result of regulation, competition or technology substitutions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to effectively manage service quality in our territories and meet mandated service quality metrics; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to successfully introduce new product offerings, including our ability to offer bundled service packages on terms that are both profitable to us and attractive to customers; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Changes in accounting policies or practices adopted voluntarily or as required by generally accepted accounting principles or regulations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to effectively manage our operations, operating expenses and capital expenditures, and to repay, reduce or refinance our debt; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of changes in both general and local economic conditions on the markets that we serve, which can affect demand for our products and services, customer purchasing decisions, collectability of revenues and required levels of capital expenditures related to new construction of residences and businesses; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The effects of technological changes and competition on our capital expenditures and product and service offerings, including the lack of assurance that our network improvements will be sufficient to meet or exceed the capabilities and quality of competing networks; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of increased medical, pension and postemployment expenses and related funding requirements; |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | The effects of state regulatory cash management practices that could limit our ability to transfer cash among our subsidiaries or dividend funds up to the parent company; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to successfully renegotiate union contracts in 2012 and thereafter; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Changes in pension plan assumptions and/or the value of our pension plan assets, which could require us to make increased contributions to the pension plan in 2013 and beyond; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of customer bankruptcies and home foreclosures, which could result in difficulty in collection of revenues and loss of customers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adverse changes in the credit markets or in the ratings given to our debt securities by nationally accredited ratings organizations, which could limit or restrict the availability, or increase the cost, of financing; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our ability to pay dividends on our common shares, which may be affected by our cash flow from operations, amount of capital expenditures, debt service requirements, cash paid for income taxes and liquidity; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effects of severe weather events such as hurricanes, tornadoes, ice storms or other natural or man-made disasters. |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

----

----

----

|           | % of Households in |
|----------------|--------------------|
|           | Frontier           |   | Acquired |   | Total |
| (In excess of) | Legacy             |   | Territories |   | Company |
|           |               |   |   |   |   |
| 1 Mbps         | 92%                |   | 84% |   | 86% |
| 3 Mbps         | 79%                |   | 80% |   | 80% |
| 4 Mbps         | 75%                |   | 78% |   | 77% |
| 6 Mbps         | 65%                |   | 68% |   | 67% |
| 12 Mbps        | 37%                |   | 53% |   | 48% |
| 20 Mbps        | 30%                |   | 35% |   | 34% |

----

----

----

----

----

----

| OTHER FINANCIAL AND OPERATING DATA |
|------------------------------------|
|                               |   |   |   |   |   |   |   |
|                               |   | As of |   | As of |   | % Increase |   |
|                               |   | September 30, 2012 |   | September 30, 2011 |   | (Decrease) |   |
|                               |   |   |   |   |   |   |   |
| Customers                          |   |   | 3,223,557 |   |   | 3,494,294 |   |   | (8%) |   |
|                               |   |   |   |   |   |   |   |   |   |   |
| Access lines:                      |   |   |   |   |   |   |   |   |   |   |
|    Residential      |   |   | 3,025,928 |   |   | 3,344,758 |   |   | (10%) |   |
|    Business         |   |   | 1,916,594 |   |   | 2,029,101 |   |   | (6%) |   |
| Total access lines                 |   |   | 4,942,522 |   |   | 5,373,859 |   |   | (8%) |   |
|                               |   |   |   |   |   |   |   |   |   |   |
| Broadband subscribers              |   |   | 1,782,278 |   |   | 1,754,842 |   |   | 2% |   |
| Video subscribers (1)              |   |   | 388,257 |   |   | 556,552 |   |   | (30%) |   |

|   |                                                                                                                                                                                |   |    For the three months ended September 30,   |   |      |   |   |   |      |       |   For the nine months ended September 30, |   |       |    |                                                   |   |             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|------------|------------------------------------------------|--------|------------|---------|--------------------------------------------------------|--------|------------------|
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      | $ Increase |                                           |   | % Increase |    |                                                   |   |             |   |   |   |   |   | $ Increase |   |   | % Increase |   |
|   |                                                                                                                                                                                |   | 2012                                                    |   |      | 2011   |   |   |      | (Decrease) |                                           |   | (Decrease) |    |                                                   | 2012   |             |   | 2011 |   |   |   | (Decrease) |   |   | (Decrease) |   |
|   | Revenue (in 000's):                                                                                                                                                                 |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |
|   |    Residential                                                                                                                                                       |   | $                                                       |   | 531,397   |   |   | $      | 560,913   |       |                                           |   | $          | (29,516 | )                                                      |   |             | (5%) |   |   | $ | 1,601,322 |   |   | $ | 1,726,383 |   |   |   | $ | (125,061 | ) |   |   | (7%) |   |
|   |    Business                                                                                                                                                          |   |                                                    |   | 581,097   |   |   |   | 581,993   |       |                                           |   |       | (896    | )                                                      |   |             | 0% |   |   |   | 1,742,761 |   |   |   | 1,761,409 |   |   |   |   | (18,648 | ) |   |   | (1%) |   |
|   | Customer revenue                                                                                                                                                                    |   |                                                    |   | 1,112,494 |   |   |   | 1,142,906 |       |                                           |   |       | (30,412 | )                                                      |   |             | (3%) |   |   |   | 3,344,083 |   |   |   | 3,487,792 |   |   |   |   | (143,709 | ) |   |   | (4%) |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Switched access and subsidy                                                                                                                                       |   |                                                    |   | 139,975   |   |   |   | 148,033   |       |                                           |   |       | (8,058  | )                                                      |   |             | (5%) |   |   |   | 435,217 |   |   |   | 472,099 |   |   |   |   | (36,882 | ) |   |   | (8%) |   |
|   | Total revenue                                                                                                                                                                       |   | $                                                       |   | 1,252,469 |   |   | $      | 1,290,939 |       |                                           |   | $          | (38,470 | )                                                      |   |             | (3%) |   |   | $ | 3,779,300 |   |   | $ | 3,959,891 |   |   |   | $ | (180,591 | ) |   |   | (5%) |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Switched access minutes of use                                                                                                                                                      |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    (in millions)                                                                                                                                                     |   |                                                    |   | 4,481     |   |   |   | 4,626     |       |                                           |   |       |    |                                                   |   |             | (3%) |   |   |   | 13,769 |   |   |   | 14,412 |   |   |   |   |   |   |   |   | (4%) |   |
|   | Average monthly total revenue                                                                                                                                                       |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     per customer                                                                                                                                                |   | $                                                       |   | 128.48    |   |   | $      | 121.68    |       |                                           |   |       |    |                                                   |   |             | 6% |   |   | $ | 126.73 |   |   | $ | 121.09 |   |   |   |   |   |   |   |   | 5% |   |
|   | Average monthly total customer                                                                                                                                                      |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |     revenue per customer                                                                                                                                        |   | $                                                       |   | 114.12    |   |   | $      | 107.72    |       |                                           |   |       |    |                                                   |   |             | 6% |   |   | $ | 112.14 |   |   | $ | 106.66 |   |   |   |   |   |   |   |   | 5% |   |
|   | Average monthly total revenue per                                                                                                                                                   |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    access line                                                                                                                                                       |   | $                                                       |   | 83.38     |   |   | $      | 79.22     |       |                                           |   |       |    |                                                   |   |             | 5% |   |   | $ | 82.15 |   |   | $ | 79.21 |   |   |   |   |   |   |   |   | 4% |   |
|   | Average monthly customer revenue                                                                                                                                                    |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    per access line                                                                                                                                                   |   | $                                                       |   | 74.06     |   |   | $      | 70.14     |       |                                           |   |       |    |                                                   |   |             | 6% |   |   | $ | 72.69 |   |   | $ | 69.77 |   |   |   |   |   |   |   |   | 4% |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |                                                                                                                                                                                |   |  As of or for the three months ended September 30, |   |      |   |   |   |      |       |                                           |   |       |    |  As of or for the nine months ended September 30, |   |             |   |   |   |   |   |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |  % Increase |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  % Increase |   |
|   |                                                                                                                                                                                |   |                                                    |   | 2012      |   |   |   | 2011      |       |                                           |   |       |    |                                                   |   | (Decrease)       |   |   |   | 2012 |   |   |   | 2011 |   |   |   |   |   |   |   | (Decrease) |   |
|   | Residential customer metrics:                                                                                                                                                       |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Customers                                                                                                                                                         |   |                                                    |   | 2,932,163 |   |   |   | 3,174,915 |       |                                           |   |       |    |                                                   |   |             | (8%) |   |   |   | 2,932,163 |   |   |   | 3,174,915 |   |   |   |   |   |   |   |   | (8%) |   |
|   |    Revenue (in 000's)                                                                                                                                                |   | $                                                       |   | 531,397   |   |   | $      | 560,913   |       |                                           |   |       |    |                                                   |   |             | (5%) |   |   | $ | 1,601,322 |   |   | $ | 1,726,383 |   |   |   |   |   |   |   |   | (7%) |   |
|   |    Average monthly residential                                                                                                                                       |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |      revenue per customer (2)                                                                                                                              |   | $                                                       |   | 58.72     |   |   | $      | 57.52     |       |                                           |   |       |    |                                                   |   |             | 2% |   |   | $ | 57.95 |   |   | $ | 57.49 |   |   |   |   |   |   |   |   | 1% |   |
|   |    Customer monthly churn                                                                                                                                            |   |                                                    |   | 1.63      | %      |   |   | 1.72      | %          |                                           |   |       |    |                                                   |   |             | (5%) |   |   |   | 1.58 | % |   |   | 1.72 | % |   |   |   |   |   |   |   | (8%) |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Business customer metrics:                                                                                                                                                          |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |    Customers                                                                                                                                                         |   |                                                    |   | 291,394   |   |   |   | 319,379   |       |                                           |   |       |    |                                                   |   |             | (9%) |   |   |   | 291,394 |   |   |   | 319,379 |   |   |   |   |   |   |   |   | (9%) |   |
|   |    Revenue (in 000's)                                                                                                                                                |   | $                                                       |   | 581,097   |   |   | $      | 581,993   |       |                                           |   |       |    |                                                   |   |             | 0% |   |   | $ | 1,742,761 |   |   | $ | 1,761,409 |   |   |   |   |   |   |   |   | (1%) |   |
|   |    Average monthly business                                                                                                                                          |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   |      revenue per customer                                                                                                                                  |   | $                                                       |   | 659.01    |   |   | $      | 600.48    |       |                                           |   |       |    |                                                   |   |             | 10% |   |   | $ | 645.52 |   |   | $ | 591.56 |   |   |   |   |   |   |   |   | 9% |   |
|   |                                                                                                                                                                                |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)    | Decline in video subscribers is due to the loss of 203,100 DirecTV subscribers in the third quarter of 2012 as Frontier no longer provides DirecTV as part of its bundled packages. |   |
| (2)    | Calculation excludes the Mohave Cellular Limited Partnership.                                                                                                                       |   |                                                    |   |      |   |   |   |      |       |                                           |   |       |    |                                                   |   |             |   |   |   |   |   |   |   |   |   |   |   |

----

|                             |                                     |      |   |   |   |      |       |   |       |       |   |
|----------------------------------|------------------------------------------|-----------|--------|--------|--------|-----------|------------|--------|------------|------------|--------|
| ($ in thousands)                 | For the three months ended September 30, |      |   |   |   |      |       |   |
|                             |                                     |      |   |   |   |      | $ Increase |   |       | % Increase |   |
|                             | 2012                                     |      |   | 2011   |   |      | (Decrease) |   |       | (Decrease) |   |
|                             |                                     |      |   |   |   |      |       |   |       |       |   |
| Local and long distance services | $                                        | 556,353   |   |   | $      | 605,593   |       |   | $          | (49,240    | )      |   |   | (8%) |   |
| Data and internet services       |                                     | 461,212   |   |   |   | 457,934   |       |   |       | 3,278      |   |   |   | 1% |   |
| Other                            |                                     | 94,929    |   |   |   | 79,379    |       |   |       | 15,550     |   |   |   | 20% |   |
| Customer revenue                 |                                     | 1,112,494 |   |   |   | 1,142,906 |       |   |       | (30,412    | )      |   |   | (3%) |   |
| Switched access and subsidy      |                                     | 139,975   |   |   |   | 148,033   |       |   |       | (8,058     | )      |   |   | (5%) |   |
| Total revenue                    | $                                        | 1,252,469 |   |   | $      | 1,290,939 |       |   | $          | (38,470    | )      |   |   | (3%) |   |
|                             |                                     |      |   |   |   |      |       |   |       |       |   |   |   |   |   |
|                             |                                     |      |   |   |   |      |       |   |       |       |   |   |   |   |   |
|                             | For the nine months ended September 30,  |      |   |   |   |      |       |   |       |       |
|                             |                                     |      |   |   |   |      |       |   | $ Increase |       |   | % Increase |   |
|                             |                                     | 2012      |   |   |   | 2011      |       |   | (Decrease) |       |   | (Decrease) |   |
|                             |                                     |      |   |   |   |      |       |   |       |       |   |   |   |   |   |
| Local and long distance services | $                                        | 1,688,352 |   |   | $      | 1,858,451 |       |   | $          | (170,099   | )      |   |   | (9%) |   |
| Data and internet services       |                                     | 1,366,588 |   |   |   | 1,378,060 |       |   |       | (11,472    | )      |   |   | (1%) |   |
| Other                            |                                     | 289,143   |   |   |   | 251,281   |       |   |       | 37,862     |   |   |   | 15% |   |
| Customer revenue                 |                                     | 3,344,083 |   |   |   | 3,487,792 |       |   |       | (143,709   | )      |   |   | (4%) |   |
| Switched access and subsidy      |                                     | 435,217   |   |   |   | 472,099   |       |   |       | (36,882    | )      |   |   | (8%) |   |
| Total revenue                    | $                                        | 3,779,300 |   |   | $      | 3,959,891 |       |   | $          | (180,591   | )      |   |   | (5%) |   |
|                             |                                     |      |   |   |   |      |       |   |       |       |   |   |   |   |   |

----

----

| ($ in thousands) | For the three months ended September 30, |    |   |   |   |    |       |   |
|------------------|------------------------------------------|---------|--------|--------|--------|---------|------------|--------|
|             |                                     |    |   |   |   |    | $ Increase |   |   | % Increase |   |
|             | 2012                                     |    |   | 2011   |   |    | (Decrease) |   |   | (Decrease) |   |
|             |                                     |    |   |   |   |    |       |   |   |   |   |
| Network access   | $                                        | 102,051 |   |   | $      | 119,941 |       |   | $ | (17,890 | ) |   |   | (15%) |   |
|             |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |
|             | For the nine months ended September 30,  |    |   |   |   |    |       |   |   |   |
|             |                                     |    |   |   |   |    |       |   | $ Increase |   |   | % Increase |   |
|             |                                     | 2012    |   |   |   | 2011    |       |   | (Decrease) |   |   | (Decrease) |   |
|             |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |
| Network access   | $                                        | 333,053 |   |   | $      | 397,854 |       |   | $ | (64,801 | ) |   |   | (16%) |   |
|             |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |

----

|                         |                                     |      |   |   |   |       |   |       |       |   |
|------------------------------|------------------------------------------|-----------|--------|--------|--------|------------|--------|------------|------------|--------|
| ($ in thousands)             | For the three months ended September 30, |      |   |   |   |       |   |
|                         |                                     |      |   |   |   | $ Increase |   |       | % Increase |   |
|                         | 2012                                     |      |   | 2011   |   | (Decrease) |   |       | (Decrease) |   |
|                         |                                     |      |   |   |   |       |   |       |       |   |
| Wage and benefit expenses    | $                                        | 315,468   |   |   | $      | 289,014    |   | $          | 26,454     |   |   |   | 9% |   |
| All other operating expenses |                                     | 256,880   |   |   |   | 282,374    |   |       | (25,494    | )      |   |   | (9%) |   |
|                         | $                                        | 572,348   |   |   | $      | 571,388    |   | $          | 960        |   |   |   | 0% |   |
|                         |                                     |      |   |   |   |       |   |       |       |   |   |   |   |   |
|                         |                                     |      |   |   |   |       |   |       |       |   |   |   |   |   |
|                         | For the nine months ended September 30,  |      |   |   |   |       |   |       |       |
|                         |                                     |      |   |   |   |       |   | $ Increase |       |   | % Increase |   |
|                         |                                     | 2012      |   |   |   | 2011       |   | (Decrease) |       |   | (Decrease) |   |
|                         |                                     |      |   |   |   |       |   |       |       |   |   |   |   |   |
| Wage and benefit expenses    | $                                        | 902,726   |   |   | $      | 858,727    |   | $          | 43,999     |   |   |   | 5% |   |
| All other operating expenses |                                     | 761,116   |   |   |   | 871,097    |   |       | (109,981   | )      |   |   | (13%) |   |
|                         | $                                        | 1,663,842 |   |   | $      | 1,729,824  |   | $          | (65,982    | )      |   |   | (4%) |   |
|                         |                                     |      |   |   |   |       |   |       |       |   |   |   |   |   |

----

|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
|---------------------------------|---------|--------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|----------------------------------------------------------------------|--------|------------|
| ($ in thousands)                |    | For the three months ended September 30,                                             |   |   |                                                                                                                                                                      |   |    |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    | $ Increase                                                           |   | % Increase |
|                            |    | 2012                                                                                 |   |   | 2011                                                                                                                                                                      |   |    | (Decrease)                                                           |   | (Decrease) |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
| Depreciation  expense | $  |          209,947                        |   | $      | 226,702                                                                                                                                                                   |   | $  |        (16,755)                   |   | (7%)       |
| Amortization expense            |    |              88,469 |   |   |                            125,205 |   |    |           (36,736) |   | (29%)      |
|                            | $  |          298,416                        |   | $      | 351,907                                                                                                                                                                   |   | $  |         (53,491)             |   | (15%)      |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
|                            |    | For the nine months ended September 30,                                              |   |   |                                                                                                                                                                      |   |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    | $ Increase                                                           |   | % Increase |
|                            |    | 2012                                                                                 |   |   | 2011                                                                                                                                                                      |   |    | (Decrease)                                                           |   | (Decrease) |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
| Depreciation  expense | $  |          628,823                        |   | $      | 671,171                                                                                                                                                                   |   | $  |         (42,348)             |   | (6%)       |
| Amortization expense            |    |            333,940            |   |   |                            390,979 |   |    |           (57,039) |   | (15%)      |
|                            | $  |          962,763                        |   | $      | 1,062,150                                                                                                                                                                 |   | $  |         (99,387)             |   | (9%)       |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |
|                            |    |                                                                                 |   |   |                                                                                                                                                                      |   |    |                                                                 |   |       |

----

|              |    | For the three months ended September 30,                                            |   |   |    |   |    |
|-------------------|---------|-------------------------------------------------------------------------------------|--------|--------|---------|--------|---------|
| ($ in thousands)  |    |                                                                                |   |   |    |   |    | $ Increase |   | % Increase |
|              |    | 2012                                                                                |   |   | 2011    |   |    | (Decrease) |   | (Decrease) |
|              |    |                                                                                |   |   |    |   |    |   |   |   |
| Integration costs | $  |              4,458 |   | $      | 67,412  |   | $  |        (62,954) |   | (93%) |
|              |    |                                                                                |   |   |    |   |    |   |   |   |
|              |    |                                                                                |   |   |    |   |    |   |   |   |
|              |    | For the nine months ended September 30,                                             |   |   |    |   |    |
|              |    |                                                                                |   |   |    |   |    | $ Increase |   | % Increase |
|              |    | 2012                                                                                |   |   | 2011    |   |    | (Decrease) |   | (Decrease) |
|              |    |                                                                                |   |   |    |   |    |   |   |   |
| Integration costs |  $ |            68,204            |   | $      | 100,899 |   | $  |         (32,695) |   | (32%) |
|              |    |                                                                                |   |   |    |   |    |   |   |   |

|                                   |   | For the three months ended September 30, |    |   |   |   |    |       |
|----------------------------------------|--------|------------------------------------------|---------|--------|--------|--------|---------|------------|
| ($ in thousands)                       |   |                                     |    |   |   |   |    | $ Increase |   |   | % Increase |   |
|                                   |   | 2012                                     |    |   | 2011   |   |    | (Decrease) |   |   | (Decrease) |   |
|                                   |   |                                     |    |   |   |   |    |       |   |   |   |   |
| Investment income (loss)               |   | $                                        | 323     |   |   | $      | (666    | )          |   | $ | 989 |   |   |   | 148% |   |
| Losses on early extinguishment of debt |   | $                                        | (245    | )      |   | $      | -       |       |   | $ | (245 | ) |   |   | (100%) |   |
| Other income (loss), net               |   | $                                        | 4,279   |   |   | $      | 1,502   |       |   | $ | 2,777 |   |   |   | 185% |   |
| Interest expense                       |   | $                                        | 172,188 |   |   | $      | 165,755 |       |   | $ | 6,433 |   |   |   | 4% |   |
| Income tax expense (benefit)           |   | $                                        | 35,739  |   |   | $      | (6,948  | )          |   | $ | 42,687 |   |   | NM |   |
|                                   |   |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |
|                                   |   | For the nine months ended September 30,  |    |   |   |   |    |       |   |   |
|                                   |   |                                     |    |   |   |   |    |       |   | $ Increase |   |   | % Increase |   |
|                                   |   |                                     | 2012    |   |   |   | 2011    |       |   | (Decrease) |   |   | (Decrease) |   |
|                                   |   |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |
| Investment income                      |   | $                                        | 12,417  |   |   | $      | 2,624   |       |   | $ | 9,793 |   |   | NM |   |
| Losses on early extinguishment of debt |   | $                                        | (71,063 | )      |   | $      | -       |       |   | $ | (71,063 | ) |   |   | (100%) |   |
| Other income (loss), net               |   | $                                        | 6,577   |   |   | $      | 7,415   |       |   | $ | (838 | ) |   |   | (11%) |   |
| Interest expense                       |   | $                                        | 509,104 |   |   | $      | 500,034 |       |   | $ | 9,070 |   |   |   | 2% |   |
| Income tax expense                     |   | $                                        | 66,150  |   |   | $      | 66,809  |       |   | $ | (659 | ) |   |   | (1%) |   |
|                                   |   |                                     |    |   |   |   |    |       |   |   |   |   |   |   |   |   |

----

----

----

| (a)   | Evaluation of disclosure controls and procedures |
|-----------------|--------------------------------------------------|

| (b)   | Changes in internal control over financial reporting |
|-----------------|------------------------------------------------------|

----

----

|  ISSUER PURCHASES OF EQUITY SECURITIES   |
|---------------------------------------------------------|
|                                                    |   |   |   |   |   |
| Period                                                  | Total Number of Shares Purchased |   |   |   |  Average Price Paid per Share |
|                                                    |   |   |   |   |   |
| July 1, 2012 to July 31, 2012                           |   |   |   |   |   |
| Employee Transactions (1)                               | 80,357 |   |  $ | 3.68 |
|                                                    |   |   |   |   |   |
| August 1, 2012 to August 31, 2012                       |   |   |   |   |   |
| Employee Transactions (1)                               | 1,437 |   |  $ | 4.19 |
|                                                    |   |   |   |   |   |
| September 1, 2012 to September 30, 2012                 |   |   |   |   |   |
| Employee Transactions (1)                               | 1,344 |   |  $ | 4.62 |
|                                                    |   |   |   |   |   |
|                                                    |   |   |   |   |   |
| Totals July 1, 2012 to September 30, 2012               |   |   |   |   |   |
| Employee Transactions (1)                               | 83,138 |   |  $ | 3.70 |
|                                                    |   |   |   |   |   |

| (1)   | Includes restricted shares withheld (under the terms of grants under employee stock compensation plans) to offset minimum tax withholding obligations that occur upon the vesting of restricted shares.  The Company’s stock compensation plans provide that the value of shares withheld shall be the average of the high and low price of the Company’s common stock on the date the relevant transaction occurs. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|          (a) | Exhibits:             |                                                                                                                                                     |
|------------------------------------------------------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                 |                       |                                                                                                                                                     |
|                                                 |                       |                                                                                                                                                     |
|                                                 | 31.1                       | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.                                  |
|                                                 | 31.2                       | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.                                  |
|                                                 | 32.1                       | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |
|                                                 | 32.2                       | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |
|                                                 | 101.INS     | XBRL Instance Document.                                                                                                                             |
|                                                 | 101.SCH          | XBRL Taxonomy Extension Schema Document.                                                                                                                 |
|                                                 | 101.PRE          | XBRL Taxonomy Presentation Linkbase Document.                                                                                                            |
|                                                 | 101.CAL          | XBRL Taxonomy Calculation Linkbase Document.                                                                                                        |
|                                                 | 101.LAB          | XBRL Taxonomy Label Linkbase Document.                                                                                                                   |
|                                                 | 101.DEF          | XBRL Taxonomy Extension Definition Linkbase Document.                                                                                               |
|                                                 |                       |                                                                                                                                                     |

----

|                   | FRONTIER COMMUNICATIONS CORPORATION                                                                                                                                                                           |
|------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | (Registrant)                                                                                                                                                                                                  |
|                   |                                                                                                                                                                                                          |
|                   |                                                                                                                                                                                                          |
|                   | By:  /s/ Susana D’Emic                                                                                                                                                                        |
|                   | Susana D’Emic                                                                                                                                                                                           |
|                   |                              Senior Vice President and Controller |
|                   |                                                                                                                                                                                                          |
|                   |                                                                                                                                                                                                          |
| Date: November 8, 2012 |                                                                                                                                                                                                          |
|                   |                                                                                                                                                                                                          |