2q19 earnings presentation · 2019-08-08 · magic quadrant for unified communications as a...

2Q19 Earnings PresentationAugust 8, 2019

Windstream Holdings, Inc. claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast” and other words and terms of similar meaning. Forward-looking statements are subject to risks and uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements.

Forward-looking statements include, but are not limited to, projections regarding our 2019 Financial Plan; certain revenue and contribution margin trends in our business units; expected sales growth and opportunities in strategic products and services and expansion of these products for our small and medium sized business customers; increasing broadband penetration levels and availability of faster broadband speeds to more households within our service areas; benefits of Project Excel and other activities to drive broadband speeds; expected net growth our broadband subscribers; anticipated benefits of the results of the recent fixed wireless spectrum auction; statements concerning the current arrangement and related payments with Uniti Group, Inc.; expectations regarding expense management activities, including interconnection expense, and the timing and benefit of such activities; and any other statements regarding plans, objectives, expectations and intentions and other statements that are not historical facts. These statements, along with other forward-looking statements regarding Windstream’s overall business outlook, are based on estimates, projections, beliefs, and assumptions that Windstream believes are reasonable but are not guarantees of future events, performance or results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors.

Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to our voluntary filing for reorganization under Chapter 11 of the Bankruptcy Code (“Chapter 11 Cases”); our ability to pursue our business strategies and achieve our 2019 operational goals in light of the Chapter 11 Cases; diversion of management’s attention as a result of the Chapter 11 Cases; the volatility of our financial results due to the Chapter 11 Cases; risks associated with third party actions or motions in the Chapter 11 Cases; that the cost savings and expected synergies from the mergers with EarthLink Holdings Corp. and Broadview Networks Holdings, Inc. may not be fully realized or may take longer to realize than expected; that the expected benefits of cost reduction and expense management activities are not realized or adversely affect our sales and operational activities or are otherwise disruptive to our business and personnel; further adverse changes in economic conditions in markets served by the combined company; the impact of new, emerging, or competing technologies and our ability to utilize these technologies to provide services to our customers; general worldwide economic conditions and related uncertainties; and the effect of any changes in federal or state governmental regulations or statutes. For other risk factors that could cause actual results and events to differ materially from those expressed, please refer to our filings with the Securities and Exchange Commission. Windstream does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Safe Harbor Statement

2

Participants

3

Tony ThomasChief Executive Officer

Bob GundermanChief Financial Officer & Treasurer

Chris KingVP, Investor Relations

Second Quarter 2019 Highlights

4

$450 million in adjusted OIBDAR $3.6 million sequential improvement

Consolidated adjusted OIBDAR marginof 35.0% Up 140 bps y-o-y

Interconnection and Synergy achievements remain on schedule

Consumer broadband growth of 1,900 subscribers in 2Q19Broadband subscriber growth of 2.7% year-over-year

High-Speed Internet bundle revenues up sequentially

Continued acceleration in SD-WANand Strategic SalesLargest SD-WAN provider in country todayCurrently installing approximately 600 new locations a monthStrategic sales were over 69% of total Enterprise sales in 2Q19; up from 55% in 1Q19

5

Kinetic Speed Addressability Chart

38%

50%

57%61%

69%

0% 8%12%

15%

40%

2015 2016 2017 2018 Today

25 Meg+ 100 Meg+

% of Homes in ILEC Footprint with Access to Available Speeds

Delivered Broadband Subscriber Growth in 2Q

6

16 consecutive months of consumer broadband unit growth (through June 2019)

11% improvement in sales compared to 1H18

Driven by Project Excel investments and efforts to extend faster broadband speed tiers to more customers across ILEC footprint

Expecting approx. 30,000 net subscriber additions in 2019

Net Broadband Adds (in thousands)

Significant Improvement in Broadband Subscriber Growth (in thousands)

-38 -35 -40 -45

1530

-50-30-10103050

2014 2015 2016 2017 2018 2019

-16.6

-11.6

-16.2

-21.8

2.3 1.9

-25

-20

-15

-10

-5

0

5

2Q14 2Q15 2Q16 2Q17 2Q18 2Q19

E

Improved Broadband Speed Capabilities

7

1GB Fiber Internet Service now expanded to 100,000 business locations

14%18%

21%24%

28%32%

36%

41%44%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Customer Speed Distribution of 25 Mbps or Faster

Fixed Wireless Auction Results

8

Will be used to deliver speeds of up to 1 Gig per second

The spectrum and associated electronics and equipment will be wholly owned by Windstream.

In homes equipped with Gig service, consumers can engage in multiple bandwidth-intensive activities simultaneously – such as streaming music, 4K video and virtual reality applications and games – without buffering.

For businesses, Gig service enables next-generation network, cloud, voice, security and business continuity solutions.

Windstream successfully bidfor wireless spectrum

covering 5 million households(2 million ILEC households)

for $26.6 million

• Obtained 106 licenses for 450 MHz each in the 28 GHz band for $6.2 million

• Obtained 40 licenses for 100 MHz each in the 24 GHz band for $20.4 million

Accelerate Enterprise Strategic Products Adoption

9

Strategic products are defined as: SD-WAN, UCaaS, OfficeSuite, and associated network access products and services

~$280MAnnualized Strategic

Product Revenue (based on 2Q19 results)

43%Strategic Product

Revenue Growth Y-O-Y

Strategic Revenue % ofTotal Enterprise Service Revenue

535K+UCaaS Seats

Installed

~600SD-WAN Endpoint

Locations Installed Every Month

10

Expanding Windstream’s SD-WAN PortfolioVALUE PROPOSITION:SD-WAN with Fortinet enables a more cost-effective and highly secure solution with next generation firewall options that are integrated into the SD-WAN device.

Consolidating SD-WAN and security into a single device eliminates the complexity of managing two CPE devices and provides a consolidated installation footprint.

DIFFERENTIATORS:

Digital Experience

WE Connect, Mobile

Integrated Securityon same

appliance,PCI (Q3)

Customer Experienceinstallation,

management, monitoring,

maintenance

Flexibilityaccess agnostic,

purchasing options, design

options, Professional

Services

Cloud Core powered,

cloud aware solution

+ SD-WAN + NGFW Security on same appliance

+ Essential SD-WAN Capabilities

+ Best in class Next Generation Firewall (NGFW)

+ Diverse portfolio of CPE options to fit diverse deployments

+ Gartner Challenger for SD-WAN and Leader for Security Services

Price

Feature-rich

Windstream named in 2019 Gartner® Magic Quadrant for Unified Communications as a Service, Worldwide

11

Our first-time inclusion demonstrates emerging recognition, growth of OfficeSuite UC® solution and the unique combination of proprietary technology with a full range of network services.

Gartner recognized Windstream based on completeness of vision and ability to execute.

This validates that our strategy to become a “software powerhouse” is being

recognized in the market.*Gartner, Magic Quadrant for Unified Communications as a Service, Worldwide, Daniel O’Connell, Megan Fernandez, et al., 30 July 2019. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Adjusted Results Reporting Changes Effective 2Q19

12

Now reflects all non-Enterprise revenue from within geographic territory of ILEC

Small business revenue and wholesale revenue broken out separately

• Shifted certain small business customers from Enterprise to Kinetic that reside within the ILEC territory

• Shifted wholesale customers that reside within the ILEC territory from Wholesale to Kinetic

• Shifted government and resale customers from Wholesale to Enterprise

• Allocated certain corporate expenses (primarily property taxes) to the segments

• Reflects revenue break-out of core, strategic, legacy and other revenues

• Core revenues consist of dynamic IP, dedicated Internet access, MPLS, integrated voice and data, long-distance and managed services

• Strategic revenues consist of SD-WAN, UCaaS(including OfficeSuite), and associated network access products and services

• Legacy revenues consist of TDM voice and data services

• Other revenues consist of administrative service fees, subscriber line charges and non-recurring usage-based LD revenues

• Reflects revenue for products leveraging nationwide network outside of geographic territory of ILEC

• Core revenues consist of revenues from fiber connections, data transport and wireless backhaul services

2Q19 Financial Results

13

(1) Operating results for the consumer CLEC business sold on December 31, 2018 have been excluded from all prior periods(2) Adjusted OIBDAR is adjusted OIBDA before the annual cash payment due under the Uniti arrangement(3) Adjusted OIBDA is operating income (loss) before depreciation and amortization and goodwill impairment, excluding expense associated with the arrangement with Uniti, pension

expense, share-based compensation expense, restructuring charges, merger, integration and certain other costs(4) Margins are calculated by dividing the respective profitability measures by total revenues and sales.

$450 million in adjusted OIBDAR

Sequential improvement in adjusted OIBDAR

Consolidated adjusted OIBDAR margin of 35.0% represents 140 bps improvement over 2Q18 margins

Highest consolidated adjusted OIBDAR margin post-EarthLink acquisition

Enterprise margin up 120 bps y-o-y and 160 bps sequentially

Wholesale margins at record-high

Over $960 million in liquidity at quarter end

Financial Overview (1) 2018 2019 2019Q1 Q2 Q3 Q4 YE Q1 Q2

Revenue Kinetic $538 $532 $525 $519 $2,114 $514 $509Enterprise $755 $752 $737 $723 $2,968 $696 $673Wholesale $98 $97 $96 $94 $385 $93 $88

Segment Service Revenue $1,391 $1,381 $1,359 $1,336 $5,467 $1,302 $1,270Product Sales $19 $20 $20 $17 $75 $18 $16

Total Revenue and Sales $1,409 $1,401 $1,379 $1,353 $5,542 $1,321 $1,287

Contribution MarginKinetic $325 $315 $308 $308 $1,256 $309 $303Enterprise $127 $147 $145 $143 $562 $133 $139Wholesale $70 $70 $68 $66 $274 $63 $65

Segment Contribution Margin $522 $532 $521 $517 $2,092 $504 $508

Shared Expenses $61 $61 $64 $61 $246 $57 $57Adjusted OIBDAR (1) (2) (3) (4) $462 $471 $457 $456 $1,846 $447 $450

Margin % 32.7% 33.6% 33.1% 33.7% 33.3% 33.8% 35.0%

Segment Contribution Margin %Kinetic 59.9% 58.4% 57.8% 58.6% 58.7% 59.2% 58.7%

Enterprise 16.5% 19.2% 19.3% 19.5% 18.6% 18.8% 20.4% Wholesale 71.4% 72.2% 70.9% 70.0% 71.1% 67.7% 73.8%

2018(Dollars in Millions)

Sheet1

Financial Overview (1) 2018201820192019

Q1Q2Q3Q4YEQ1Q2

Revenue

Kinetic$538$532$525$519$2,114$514$509

Enterprise$755$752$737$723$2,968$696$673

Wholesale$98$97$96$94$385$93$88

Segment Service Revenue$1,391$1,381$1,359$1,336$5,467$1,302$1,270

$0

Product Sales$19$20$20$17$75$18$16

Total Revenue and Sales$1,409$1,401$1,379$1,353$5,542$1,321$1,287

Contribution Margin

Kinetic$325$315$308$308$1,256$309$303

Enterprise$127$147$145$143$562$133$139

Wholesale$70$70$68$66$274$63$65

Segment Contribution Margin$522$532$521$517$2,092$504$508

Shared Expenses$61$61$64$61$246$57$57

Adjusted OIBDAR (1) (2) (3) (4)$462$471$457$456$1,846$447$450

Margin %32.7%33.6%33.1%33.7%33.3%33.8%35.0%

Segment Contribution Margin %

Kinetic59.9%58.4%57.8%58.6%58.7%59.2%58.7%

Enterprise16.5%19.2%19.3%19.5%18.6%18.8%20.4%

Wholesale71.4%72.2%70.9%70.0%71.1%67.7%73.8%

Expanding Enterprise MarginsAnnual Interconnect Cost Reductions Greater than 10%

2Q19 annualized run-rate of almost $1.2 billion in interconnection expenses; annualized decline of over 10%

Legacy TDM represents almost $700 million of annualized expenses and last mile TDM access is falling by more than 25% a year

Cost improvements from migrating customer from other carrier networks to on-net fiber solutions and continued network grooming efforts to contract our legacy TDM network access costs

Increasing leverage of access-agnostic technologies such as SD-WAN and UCaaS

Significant Interconnection Cost Reduction Opportunities Remain

Interconnection Expenses (in millions)

14

2Q19 2Q vs. 1QAnnualized Sequential

TDM 400 (6.3%)IP/Ethernet 347 (2.0%)

Last Mile Access 747 (4.3%)TDM 298 (3.3%)IP/Ethernet 9 (2.0%)

Network Access 307 (3.2%) 0 0%Voice/Other 139 (27.5%)

Interconnect 1,193 (7.5%)

Var May

ReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

ProformaProformaProformaProformaCurrent_ForecastProformaCurrent_ForecastProformaCurrent_ForecastProformaCurrent_Forecast

FY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY18

FebMarAprMayMayQ-T-D(May)Q-T-D(May)Y-T-D(May)Y-T-D(May)Y-T-D(May)Y-T-D(May)

Interconnect Expense3 MO PRIORMTDQTDYTDY/Y

FebMarAprMayMayMayMayMayMayMayMayGrowth %

EntityFWGAccountActualActualActualActualForecastB/(W)InitiativesCodingCommentsActualForecastB/(W)ActualForecastB/(W)'17'18

WindstreamCost Center excluding M&IDS1 AccessDS1 Access- 0- 0- 0- 0- 0- 0$ (0.1)- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IWireless AccessWireless Access- 0- 0- 0- 0- 0- 0$ 0.2- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDS3 and AboveDS3 and Above- 0- 0- 0- 0- 0- 0$ (0.3)- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IEthernet Over FiberEthernet Over Fiber- 0- 0- 0- 0- 0- 0$ 0.0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IEthernet Over HFCEthernet Over HFC- 0- 0- 0- 0- 0- 0$ 0.0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN- 0- 0- 0- 0- 0- 0$ 0.1- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IInternational AccessInternational Access- 0- 0- 0- 0- 0- 0$ 0.0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDS0DS0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IOff-Net ResaleOff-Net Resale- 0- 0- 0- 0- 0- 0$ (0.3)- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Customer Access- 0- 0- 0- 0- 0- 0$ (0.2)$ (0.4)- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICharter DCharter D- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDSLDSL- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IHyperlink InterconnectHyperlink- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ISecurity VASSecurity VAS- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IWeb Hosting InterconnectWeb Hosting- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IConsumer Interconnect OtherConsumer Other- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Consumer Interconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamConsumer CLEC InterconnectNon-Recurring ChargesConsumer NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Consumer Interconnect- 0- 0- 0- 0- 0- 0$ - 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IMetro BackhaulMetro Backhaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IOther BackhaulOther Backhaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IColocation ChargesColocation Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILonghaulLonghaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&INetwork CoreNetwork Core- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IInternet TransitInternet Transit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IBroadband AccessBroadband Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IBuilding AccessBuilding Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IENNI AccessENNI Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Network Access- 0- 0- 0- 0- 0- 0$ 0.0$ 0.5Initiatives in line with plan.- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IPole Attachment RentPole Attachment Rent- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IFiber & ConduitFiber & Conduit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IIRU Lease ExpenseIRU Lease Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IRack & Floor SpaceRack & Floor Space- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ISwitch & Central OfficeSwitch & Central Office- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IOther Leased FacilitiesOther Leased Facilities- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IPole Attachment NRCPole Attachment NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILeased Network Facilities - NRCLeased Network Facilities - NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Leased Network Facility- 0- 0- 0- 0- 0- 0$ 0.0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILD MRCLD MRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ISS7 ExpenseSS7 Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICaller IDCaller ID- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IRecip CompRecip Comp- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILocal TransitLocal Transit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDirectory ListingDirectory Listing- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IOperator ServicesOperator Services- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDirectory AssistanceDirectory Assistance- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&I8YY Expense8YY Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IWireless UsageWireless Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IVoice Non-RecurringVoice Non-Recurring- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IWholesale LD UsageWholesale LD Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILong Distance UsageLong Distance Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Voice- 0- 0- 0- 0- 0- 0$ 1.0$ (0.1)- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ISettlement ChargesSettlement Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&INon-Exempt TaxesNon-Exempt Taxes- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IFractionalFractional- 0- 0- 0- 0- 0- 0OOP backbilling months and removal of grooms discos.- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IBB/MRC OOP DisputesBB/MRC OOP Disputes- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IMRC Charges OOPMRC Charges OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IMRC Projects OOPMRC Projects OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IMRC Ethernet OOPMRC Ethernet OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IEarly Termination FeeEarly Termination Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICancellation FeeCancellation Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDisconnect FeeDisconnect Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ILate FeeLate Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IExpedite FeeExpedite Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IProject FeeProject Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IRepairs and Maintenance FeeRepairs and Maintenance Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICreditsCredits- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IDisputes ReservesDisputes Reserves- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IBuilding Access NRCBuilding Access NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IOther InterconnectOther Interconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Non-Recurring Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamConsumer CLEC InterconnectNon-recurring ChargesConsumer NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%


WindstreamCost Center excluding M&IAT&TAT&T- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&ICenturylinkCenturylink- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IFrontierFrontier- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

WindstreamCost Center excluding M&IVerizonVerizon- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Spend Plan Credit- 0- 0- 0- 0- 0- 0$ 0.1CTL Spend Plans - L3 Shortfall- 0- 0- 0- 0- 0- 0- 0- 00%

Interconnect Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Var Apr

Windstream excl BroadviewReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

WindstreamProformaProformaProformaProformaCurrent_ForecastProformaCurrent_ForecastProformaCurrent_ForecastProformaCurrent_Forecast

Windstream excl BroadviewFY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY18

JanFebMarAprAprQ-T-D(Apr)Q-T-D(Apr)Y-T-D(Apr)Y-T-D(Apr)Y-T-D(Apr)Y-T-D(Apr)

Interconnect Expense3 MO PRIORMTDQTDYTDY/Y

JanFebMarAprAprAprAprAprAprAprAprGrowth %

EntityFWGAccountActualActualActualActualForecastB/(W)CommentsActualForecastB/(W)ActualForecastB/(W)'17'18

Windstream excl BroadviewCost Center excluding M&IDS1 AccessDS1 Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IWireless AccessWireless Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDS3 and AboveDS3 and Above- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IEthernet Over FiberEthernet Over Fiber- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IEthernet Over HFCEthernet Over HFC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IInternational AccessInternational Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDS0DS0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IOff-Net ResaleOff-Net Resale- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Customer Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICharter DCharter D- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDSLDSL- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IHyperlink InterconnectHyperlink- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ISecurity VASSecurity VAS- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IWeb Hosting InterconnectWeb Hosting- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IConsumer Interconnect OtherConsumer Other- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%


Windstream excl BroadviewConsumer CLEC InterconnectNon-Recurring ChargesConsumer NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%


Windstream excl BroadviewCost Center excluding M&IMetro BackhaulMetro Backhaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IOther BackhaulOther Backhaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IColocation ChargesColocation Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILonghaulLonghaul- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&INetwork CoreNetwork Core- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IInternet TransitInternet Transit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IBroadband AccessBroadband Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IBuilding AccessBuilding Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IENNI AccessENNI Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Network Access- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IPole Attachment RentPole Attachment Rent- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IFiber & ConduitFiber & Conduit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IIRU Lease ExpenseIRU Lease Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IRack & Floor SpaceRack & Floor Space- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ISwitch & Central OfficeSwitch & Central Office- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IOther Leased FacilitiesOther Leased Facilities- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IPole Attachment NRCPole Attachment NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILeased Network Facilities - NRCLeased Network Facilities - NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Leased Network Facility- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILD MRCLD MRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ISS7 ExpenseSS7 Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICaller IDCaller ID- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IRecip CompRecip Comp- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILocal TransitLocal Transit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDirectory ListingDirectory Listing- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IOperator ServicesOperator Services- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDirectory AssistanceDirectory Assistance- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&I8YY Expense8YY Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IWireless UsageWireless Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IVoice Non-RecurringVoice Non-Recurring- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IWholesale LD UsageWholesale LD Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILong Distance UsageLong Distance Usage- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Voice- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ISettlement ChargesSettlement Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&INon-Exempt TaxesNon-Exempt Taxes- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IFractionalFractional- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IBB/MRC OOP DisputesBB/MRC OOP Disputes- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IMRC Charges OOPMRC Charges OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IMRC Projects OOPMRC Projects OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IMRC Ethernet OOPMRC Ethernet OOP- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IEarly Termination FeeEarly Termination Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICancellation FeeCancellation Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDisconnect FeeDisconnect Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ILate FeeLate Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IExpedite FeeExpedite Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IProject FeeProject Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IRepairs and Maintenance FeeRepairs and Maintenance Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICreditsCredits- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IDisputes ReservesDisputes Reserves- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IBuilding Access NRCBuilding Access NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IOther InterconnectOther Interconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%


Windstream excl BroadviewConsumer CLEC InterconnectNon-recurring ChargesConsumer NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%


Windstream excl BroadviewCost Center excluding M&IAT&TAT&T- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&ICenturylinkCenturylink- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IFrontierFrontier- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Windstream excl BroadviewCost Center excluding M&IVerizonVerizon- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Spend Plan Credit- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Interconnect Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00%

Plan Grid

Ledger Type

ProForma

2018

March

WindstreamFWG Customer Access Expense76,655,334

WindstreamFWG Consumer Interconnect Exp4,920,525

WindstreamFWG Network Access Expense31,464,514

WindstreamFWG Spend Plan Credits(819,328)

WindstreamFWG Non-Recurring Charges6,303,443

WindstreamFWG Intercompany Circuits23,788,763

WindstreamFWG Intercompany Eliminations - Interconnect(23,757,662)

WindstreamFWG Interconnect excluding Voice118,555,589

WindstreamFWG Leased Network Facilities15,146,378

WindstreamFWG Voice9,126,770

WindstreamFWGInterconnect Expense142,828,737

Earnings Release

ReportingReportingReportingReportingReportingReporting

ProformaProformaProformaProformaProformaProforma

FY18FY18FY18FY17FY18FY17

Q-T-D(Jun)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Jun)Y-T-D(Jun)Y-T-D(Jun)

Interconnect Total

QTD Jun '18QTD Mar '18Q1 to Q2QTD Jun '18QTD Jun '17Q1 to Q1YTD Jun '18YTD Jun '17Y / Y

EntityFWGAccountActualActualVarActualActualVarActualActualVar

Windstream_ConsolidatedCC_EXCLEXTCustomer Access ExpenseCustomer Access- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTConsumer Interconnect ExpConsumer Interconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTNetwork Access ExpenseNetwork Access- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTNon-Recurring ChargesNon-Recurring Charges- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTLeased Network FacilitiesLeased Network Facilities- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTVoiceVoice- 0- 0- 0- 0- 0- 0- 0- 0- 0

Windstream_ConsolidatedCC_EXCLEXTSpend Plan CreditsSpend Plan- 0- 0- 0- 0- 0- 0- 0- 0- 0

Total Expense- 0- 0- 0A- 0- 0- 0B- 0- 0- 0C

WindstreamCC_EXCLEXTInterconnect Expense- 0- 0- 0- 0- 0- 0- 0- 0- 0

ABetter due to continued MRC initiative wins $12.7M. Rachel to speak to Organic.

BBetter due to continued MRC initiative wins $51M offset by decreased Spend Plan Credits ($13.5M) from exiting the AT&T Spend Plan at end of 2017 and lower tier achievement on Centurylink in 2018. Rachel to speak to Organic.

CBetter due to continued MRC initiative wins $100M offset by decreased Spend Plan Credits ($25M) from exiting the AT&T Spend Plan at end of 2017 and lower tier achievement on Centurylink in 2018. Rachel to speak to Organic.

Initiative Calculator:

MO 1MO 2MO 3TOTAL

Q11,5091,6791,3774,564

Q21,4731,1061,6254,203

Q11,5093,1884,5649,261

Q26,0377,1438,76821,948

12,687

APRMAYJUNJULAUGSEPOCTNOVDECJANFEBMARTOTAL

Q2 171,0451,2441,3491,2952,3421,1691,1591,2561,0941,5091,6791,3773,638

Q2 181,4731,1061,6254,203

Q2 171,0452,2893,6384,9347,2768,4459,60410,86011,95413,46315,14216,5186,972

Q2 1817,99119,09720,72257,809

50,837

JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDECTOTAL

Q2 171,7341,4091,0441,0451,2441,3491,2952,3421,1691,1591,2561,0944,187

Q2 181,5091,6791,3771,4731,1061,6254,564

Q2 171,7343,1434,1875,2336,4767,8269,12111,46312,63213,79115,04716,14128,599

Q2 1817,65019,32920,70622,17823,28424,909128,057

99,457

1Q 19

ReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

InvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestor

FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY19FY19FY19FY17FY17FY18FY18FY18FY18FY19

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)

Interconnect ExpenseBY MONTH

FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY19FY19FY19FY17FY17FY18FY18FY18FY18FY19

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecJanFebMarQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)

EntityFWGAccountActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActual

CustomerTDM150145136129124115107

CustomerIP/Ethernet95959596949389

CLEC Consumer- 0- 0- 0- 0- 0- 0- 0

NetworkTDM86838183827877

NetworkIP/Ethernet1414134222

Hardcode Update in Old FileTDM112

IP/Ethernet(11)(2)

W/ Hardcode Update in Old FileTDM9185827877

IP/Ethernet22222

Total Interconnect excl LNF367359356346330331322

391384379367352- 0- 0

WindstreamCost Center excluding M&IDS1 AccessDS1 Access33.232.732.131.631.130.730.129.028.427.927.126.426.525.825.124.423.522.922.421.721.497.993.487.581.477.470.865.6TDM

WindstreamCost Center excluding M&IWireless AccessWireless Access0.30.30.30.30.30.30.30.30.40.30.20.20.20.20.20.20.20.20.20.20.20.91.01.10.70.50.50.5IP/Ethernet

WindstreamCost Center excluding M&IDS3 and AboveDS3 and Above3.63.63.33.43.23.12.92.82.72.72.92.82.72.62.62.52.42.42.22.22.110.59.68.48.47.97.36.5TDM

WindstreamCost Center excluding M&IEthernet Over FiberEthernet Over Fiber30.030.730.730.630.330.330.430.330.031.030.730.430.230.029.829.729.329.127.927.527.291.491.290.692.290.088.182.6IP/Ethernet

WindstreamCost Center excluding M&IEthernet Over HFCEthernet Over HFC0.40.60.70.70.70.80.80.80.90.91.01.01.01.11.21.41.31.41.71.81.91.72.22.52.93.34.05.5IP/Ethernet

WindstreamCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN0.60.60.60.50.50.50.50.50.50.30.10.10.10.10.10.10.10.10.10.10.11.81.61.40.50.40.30.2TDM

WindstreamCost Center excluding M&IInternational AccessInternational Access0.30.30.20.20.20.20.20.20.20.00.00.0- 0- 0- 0- 0- 0- 0- 0- 0- 00.70.70.60.1- 0- 0- 0IP/Ethernet

WindstreamCost Center excluding M&IDS0DS05.25.85.75.65.55.65.55.55.35.25.15.15.04.95.04.84.84.74.64.54.516.616.716.315.415.014.313.6TDM

WindstreamCost Center excluding M&IOff-Net ResaleOff-Net Resale7.08.38.18.08.07.87.67.67.57.77.97.87.97.67.67.47.37.36.96.96.823.423.822.823.323.122.020.6TDM

WindstreamCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0TDM

Customer Access80.582.881.781.079.979.378.477.075.976.175.073.873.772.471.670.568.968.066.164.964.2245.0240.2231.3224.9217.6207.4195.1

WindstreamCost Center excluding M&ICharter DCharter D- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

WindstreamCost Center excluding M&IDSLDSL- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

WindstreamCost Center excluding M&IHyperlink InterconnectHyperlink- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

WindstreamCost Center excluding M&ISecurity VASSecurity VAS- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

WindstreamCost Center excluding M&IWeb Hosting InterconnectWeb Hosting- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

WindstreamCost Center excluding M&IConsumer Interconnect OtherConsumer Other- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0CLEC Consumer

Consumer MRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0

WindstreamConsumer CLEC InterconnectNon-Recurring ChargesConsumer NRC- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(0.0)0.0- 0(0.0)0.00.1(0.0)0.0(0.0)- 0- 0- 0- 00.00.1(0.0)

Consumer Interconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(0.0)0.0- 0- 0- 0- 0(0.0)0.0(0.0)- 0- 0- 0- 00.00.1(0.0)

WindstreamCost Center excluding M&IMetro BackhaulMetro Backhaul17.517.817.817.116.716.416.115.915.616.217.016.916.816.516.015.615.615.415.515.414.953.250.347.750.249.446.645.8TDM

WindstreamCost Center excluding M&IOther BackhaulOther Backhaul0.30.30.30.20.20.20.20.20.20.10.00.00.00.00.00.00.00.00.00.00.00.80.70.70.10.00.00.0TDM

WindstreamCost Center excluding M&IColocation ChargesColocation Charges8.79.09.09.09.09.09.09.18.99.29.29.39.29.19.09.09.09.09.19.19.026.727.127.027.627.427.027.2TDM

WindstreamCost Center excluding M&ILonghaulLonghaul2.42.32.32.32.22.22.12.12.01.20.10.00.00.00.00.00.00.00.00.00.07.06.76.21.30.00.00.0IP/Ethernet

WindstreamCost Center excluding M&INetwork CoreNetwork Core0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.00.0- 00.00.0- 00.30.30.20.00.00.00IP/Ethernet

WindstreamCost Center excluding M&IInternet TransitInternet Transit0.10.20.20.20.10.10.10.10.10.10.10.10.10.10.10.10.20.20.10.10.20.40.40.40.30.40.50.4IP/Ethernet

WindstreamCost Center excluding M&IBroadband AccessBroadband Access0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.00.00.00.00.00.00.20.20.20.00.00.00.0IP/Ethernet

WindstreamCost Center excluding M&IBuilding AccessBuilding Access0.40.40.40.40.40.40.40.40.40.40.40.40.40.50.50.40.50.50.50.50.51.11.21.21.31.41.41.4IP/Ethernet

WindstreamCost Center excluding M&IENNI AccessENNI Access1.61.61.61.61.61.61.61.61.60.90.20.20.20.20.10.10.10.10.10.10.14.84.94.71.30.50.40.4IP/Ethernet

Network Access31.131.831.731.030.530.129.729.529.028.227.027.026.826.425.825.325.425.225.325.324.794.591.788.382.279.075.975.3

WindstreamCost Center excluding M&IILEC - NetworkNetwork ILEC1.91.91.91.81.81.81.81.81.71.71.71.61.61.61.61.51.51.51.41.31.25.65.55.35.04.84.63.9TDM

WindstreamCost Center excluding M&IPole Attachment RentPole Attachment Rent3.33.23.23.23.23.23.33.33.33.33.33.33.33.33.33.33.33.33.33.33.39.79.79.89.89.89.810.0

WindstreamCost Center excluding M&IFiber & ConduitFiber & Conduit2.02.32.32.32.32.32.32.32.32.22.12.12.12.02.12.02.02.02.02.02.06.66.96.96.46.26.06.1

WindstreamCost Center excluding M&IIRU Lease ExpenseIRU Lease Expense2.42.42.42.42.42.42.42.52.42.52.62.72.82.92.93.03.03.03.03.13.17.27.27.37.88.69.09.2

WindstreamCost Center excluding M&IRack & Floor SpaceRack & Floor Space1.61.71.71.81.91.81.81.71.81.51.51.31.11.01.01.01.01.01.01.01.05.15.55.34.33.12.92.9

WindstreamCost Center excluding M&ISwitch & Central OfficeSwitch & Central Office3.23.33.33.33.43.43.53.53.53.53.53.53.63.63.63.63.63.63.73.73.79.910.210.410.510.710.811.1

WindstreamCost Center excluding M&IOther Leased FacilitiesOther Leased Facilities1.82.02.01.91.91.71.71.71.71.81.71.71.71.71.71.71.71.71.61.61.75.85.55.15.25.25.04.9

WindstreamCost Center excluding M&IPole Attachment NRCPole Attachment NRC0.0(0.3)0.1(0.3)0.0(0.2)(0.3)(0.4)(0.0)(0.0)0.00.1(0.1)(0.0)0.0(0.1)(0.2)0.00.1(0.2)0.0(0.2)(0.4)(0.7)0.1(0.1)(0.3)(0.0)

WindstreamCost Center excluding M&ILeased Network Facilities - NRCLeased Network Facilities - NRC0.40.4(0.2)0.5(0.4)(0.1)0.20.50.20.1(0.2)0.30.10.2(0.3)(0.0)0.10.10.50.31.00.60.00.90.20.00.21.8

Leased Network Facility14.715.014.915.314.814.514.915.015.114.814.614.814.514.714.314.514.414.615.314.915.844.644.645.044.243.543.546.0

WindstreamCost Center excluding M&ILD MRCLD MRC1.21.21.21.21.21.21.11.11.11.41.81.91.81.81.71.71.61.82.01.81.83.73.63.35.15.45.05.5

WindstreamCost Center excluding M&ISS7 ExpenseSS7 Expense0.50.60.50.50.60.60.50.50.50.40.80.40.30.40.40.30.30.30.30.30.31.61.71.61.71.10.90.9

WindstreamCost Center excluding M&ICaller IDCaller ID0.30.30.30.30.40.40.30.30.40.40.40.40.30.30.30.30.30.30.30.30.30.91.01.01.11.01.00.9

WindstreamCost Center excluding M&IRecip CompRecip Comp0.40.40.40.40.40.40.40.30.40.30.20.20.20.20.10.10.10.10.10.10.11.11.11.10.80.40.30.2

WindstreamCost Center excluding M&ILocal TransitLocal Transit0.20.20.20.20.20.20.20.20.20.20.20.20.20.10.20.20.20.20.20.20.20.60.60.50.50.50.60.6

WindstreamCost Center excluding M&IDirectory ListingDirectory Listing0.50.50.50.50.50.50.50.40.40.40.40.40.40.40.40.40.40.40.40.40.41.61.41.41.21.11.11.1

WindstreamCost Center excluding M&IOperator ServicesOperator Services0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.10.10.10.10.10.10.0

WindstreamCost Center excluding M&IDirectory AssistanceDirectory Assistance0.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.30.30.30.3

WindstreamCost Center excluding M&I8YY Expense8YY Expense0.20.40.30.20.20.20.30.20.20.20.20.20.20.20.20.30.20.20.20.20.20.90.60.70.70.70.70.5

WindstreamCost Center excluding M&IWireless UsageWireless Usage0.20.20.10.00.10.00.00.10.20.00.00.00.00.00.00.00.00.00.00.00.00.40.10.30.10.10.10.1

WindstreamCost Center excluding M&IVoice Non-RecurringVoice Non-Recurring(0.1)(0.2)(0.0)(0.1)(0.1)(0.1)(0.0)(0.0)(0.1)0.1(0.2)0.1(0.2)(0.3)(0.0)0.20.00.20.0(0.1)0.1(0.3)(0.3)(0.1)(0.0)(0.5)0.40.1

WindstreamCost Center excluding M&IWholesale LD UsageWholesale LD Usage0.10.00.0(0.0)0.00.0(0.0)(0.0)(0.0)0.00.0(0.0)(0.0)0.0(0.0)(0.0)0.00.00.00.00.00.10.0(0.0)0.00.00.00.0

WindstreamCost Center excluding M&ILong Distance UsageLong Distance Usage6.16.56.26.25.65.35.75.15.24.84.85.05.05.25.05.75.55.86.96.36.118.717.116.014.615.217.119.3

Voice9.710.29.89.79.18.79.18.48.78.58.88.98.48.68.49.48.89.410.59.69.529.727.426.226.225.427.529.6

WindstreamINTCNCT_excl_CON Settlement ChargesSettlement Charges0.40.30.30.40.40.30.30.30.40.30.30.10.20.20.20.20.2(0.1)- 0(0.3)- 01.01.11.10.60.50.3(0.3)

WindstreamINTCNCT_excl_CON Non-Exempt TaxesNon-Exempt Taxes0.50.40.50.70.60.50.60.60.60.60.80.60.90.70.70.70.60.70.70.70.91.51.81.82.02.32.12.2

WindstreamINTCNCT_excl_CON Fractional - InstallationFractional - Installation- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 01.21.31.31.8- 0- 0- 0- 0- 01.24.4

WindstreamINTCNCT_excl_CON Fractional - DisconnectFractional - Disconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(1.6)(1.4)(1.4)(1.5)- 0- 0- 0- 0- 0(1.6)(4.3)

WindstreamINTCNCT_excl_CON Fractional - ProjectFractional - Project- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(0.2)(0.0)0.00.1- 0- 0- 0- 0- 0(0.2)0.1

WindstreamINTCNCT_excl_CON Fractional - Rate ChangeFractional - Rate Change- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00.4(0.1)0.10.4- 0- 0- 0- 0- 00.40.4

WindstreamINTCNCT_excl_CON Fractional - OtherFractional - Other0.5(0.4)(0.3)(0.4)(0.3)(0.1)0.10.2(0.2)(0.0)0.3(0.2)0.4(1.1)(0.2)(0.4)(0.4)0.00.4(0.1)0.1(0.1)(0.8)0.10.1(0.8)(0.8)0.3

WindstreamINTCNCT_excl_CON BB/MRC OOP DisputesBB/MRC OOP Disputes(0.4)(2.4)(0.1)(1.3)(0.7)(0.4)(0.3)(1.5)(0.2)(1.5)(2.1)0.2(3.5)1.8(2.9)(0.7)(1.8)(0.0)0.10.1(0.1)(3.0)(2.3)(2.0)(3.4)(4.6)(2.5)0.1

WindstreamINTCNCT_excl_CON Disputes - Cost AvoidanceDisputes - Cost Avoidance- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(2.3)(1.6)(2.0)(2.9)- 0- 0- 0- 0- 0(2.3)(6.4)

WindstreamINTCNCT_excl_CON Disputes - InitiativeDisputes - Initiative- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(1.9)(0.6)(0.7)(2.0)- 0- 0- 0- 0- 0(1.9)(3.2)

WindstreamINTCNCT_excl_CON Disputes - OptimizationDisputes - Optimization- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00.20.40.3(0.0)- 0- 0- 0- 0- 00.20.6

WindstreamINTCNCT_excl_CON MRC Charges OOPMRC Charges OOP0.50.50.40.10.20.30.60.00.20.71.60.50.30.50.30.40.60.0(0.3)(0.1)0.11.30.50.92.71.11.0(0.3)

WindstreamINTCNCT_excl_CON MRC Projects OOPMRC Projects OOP0.40.50.10.10.50.50.90.91.10.80.81.80.70.81.00.81.50.82.10.91.31.01.12.93.42.63.14.3

WindstreamINTCNCT_excl_CON MRC Ethernet OOPMRC Ethernet OOP0.10.10.10.10.30.10.00.00.10.10.10.20.1- 0- 0- 0- 0- 0- 0- 0- 00.30.60.20.40.1- 0- 0

WindstreamINTCNCT_excl_CON Early Termination FeeEarly Termination Fee- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0

WindstreamINTCNCT_excl_CON Cancellation FeeCancellation Fee0.00.00.00.0(0.0)(0.0)- 0- 0- 0- 0(0.0)- 0(0.0)(0.0)(0.0)0.0(0.0)- 0- 0- 0- 00.0(0.0)- 0(0.0)(0.0)0.0- 0

WindstreamINTCNCT_excl_CON Disconnect FeeDisconnect Fee0.10.20.10.10.10.10.00.10.10.00.10.00.00.00.10.00.1- 00.0- 0- 00.40.20.20.10.10.10.0

WindstreamINTCNCT_excl_CON Late FeeLate Fee0.30.30.20.30.30.30.50.60.60.40.20.10.80.30.40.10.61.91.61.92.10.80.91.60.71.62.75.6

WindstreamINTCNCT_excl_CON Expedite FeeExpedite Fee(0.0)- 00.00.00.0- 00.00.00.0(0.0)- 0- 0- 0(0.0)- 0- 0- 0(0.0)- 0- 0- 0- 00.00.0(0.0)(0.0)(0.0)- 0

WindstreamINTCNCT_excl_CON Project FeeProject Fee0.30.40.50.50.51.00.30.40.30.40.90.80.70.80.50.30.90.10.00.20.21.21.91.02.11.91.30.4

WindstreamINTCNCT_excl_CON Repairs and Maintenance FeeRepairs and Maintenance Fee0.00.00.0- 00.0- 0- 0(0.0)- 0- 0(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)0.00.0- 0- 00.00.0(0.0)(0.0)(0.0)0.00.0

WindstreamINTCNCT_excl_CON CreditsCredits(0.2)(0.5)(0.4)(0.5)(0.4)(0.4)(0.3)(0.3)(0.2)(0.2)(0.0)(0.7)(0.3)(0.3)(0.3)(0.3)(0.3)(0.2)(0.2)(0.4)(0.7)(1.2)(1.3)(0.9)(0.8)(0.9)(0.8)(1.3)

WindstreamINTCNCT_excl_CON Disputes ReservesDisputes Reserves- 0- 0- 0(0.0)(0.0)(0.0)- 0(0.0)- 0- 0- 0- 0- 0- 0- 0- 0- 00.0- 00.0- 0- 0(0.0)(0.0)- 0- 00.00.0

WindstreamINTCNCT_excl_CON Building Access NRCBuilding Access NRC0.10.00.00.00.00.10.00.00.00.00.00.00.00.00.00.00.00.61.50.91.20.10.10.10.00.00.63.6

WindstreamINTCNCT_excl_CON Other InterconnectOther Interconnect0.3(2.3)0.3(0.0)0.00.2(0.0)0.01.5(0.2)1.21.00.3(0.1)(0.1)(0.0)0.21.20.10.00.5(1.7)0.21.51.90.11.30.7

Non-Recurring Charges (Includes Access Telephone)2.8(2.9)1.6(0.1)1.62.52.91.44.21.34.04.40.73.8(0.3)4.35.17.07.45.15.61.54.18.59.74.116.318.1

WindstreamCost Center excluding M&IAT&TAT&T(2.0)(2.1)(2.1)(2.0)(2.0)(3.3)(0.1)- 0- 0- 0- 0- 00.2- 0- 0- 0- 0- 0- 0- 0- 0(6.1)(7.3)(0.1)- 00.2- 0- 0

WindstreamCost Center excluding M&ICenturylinkCenturylink(1.0)(1.2)(1.1)(1.1)(1.1)(0.5)(1.0)(1.1)(0.8)(0.8)(0.6)(0.5)(0.8)(0.8)0.3- 0(0.8)0.00.00.10.0(3.3)(2.7)(2.9)(1.9)(1.3)(0.8)0.1

WindstreamCost Center excluding M&IFrontierFrontier- 00.1- 0- 0- 0- 0- 0- 0- 0- 0- 00.10.00.1- 0- 00.00.1- 00.10.00.1- 0- 00.10.10.10.1

WindstreamCost Center excluding M&IVerizonVerizon- 0- 0- 0- 0- 0(0.0)- 0- 0- 0- 0- 0- 0- 00.0- 0- 0- 0- 0- 0- 0- 0- 0(0.0)- 0- 00.0- 0- 0

Spend Plan Credit(3.0)(3.2)(3.2)(3.1)(3.1)(3.8)(1.1)(1.1)(0.8)(0.8)(0.6)(0.4)(0.6)(0.7)0.3- 0(0.8)0.10.00.20.0(9.4)(10.0)(3.0)(1.8)(1.0)(0.7)0.2

Interconnect Expense137.7135.5138.3135.6134.6133.1135.6132.0133.9129.7130.5130.3125.0126.8121.6125.4123.3125.8125.9121.2121.1411.5403.4401.5390.4373.4374.6368.2

111.0108.9111.1331.1322.3

Summ1Q19

Last Tweleve Months4Q vs. 3Q1Q vs. 4Q

3Q174Q171Q182Q183Q184Q181Q19LTM% OfBet / (Wor)Bet / (Wor)

TDM1511471391311261151074788.8%7.1%

IP/Ethernet959595969493893711.3%4.4%

Last Mile Access24624223422722020719584963%5.6%5.9%

TDM89848178773203.1%1.5%

IP/Ethernet432229-2.2%2.0%

Network Access928783807932924%3.0%1.6%

Voice/Other145142535350434819413%13.1%-10.6%`

Interconnect3913843793673523313221,373100%6.0%2.7%

Annualized1,5651,5361,5171,4691,4101,3251,28924.2%10.7%

Final 1Q19 Table

2Q192Q vs. 1Q

AnnualizedSequential

TDM400(6.3%)

IP/Ethernet347(2.0%)

Last Mile Access747(4.3%)

TDM298(3.3%)

IP/Ethernet9(2.0%)

Network Access307(3.2%)

- 00.0%

Voice/Other139(27.5%)

Interconnect1,193(7.5%)

4Q18

ReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

InvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestor

FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY17FY18FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)Q-T-D(Dec)


FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY17FY18FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepOctNovDecQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)Q-T-D(Dec)

EntityFWGAccountActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActual

CustomerTDM151147139131126116


CLEC Consumer- 0- 0- 0- 0- 0- 0




IP/Ethernet(11)(2)


IP/Ethernet2222

Total Interconnect excl LNF391384380367352341

391384379367352- 0

WindstreamCost Center excluding M&IDS1 AccessDS1 Access33.232.732.131.631.130.730.129.028.427.927.126.426.525.825.124.423.522.997.993.487.581.477.470.8TDM

WindstreamCost Center excluding M&IWireless AccessWireless Access0.30.30.30.30.30.30.30.30.40.30.20.20.20.20.20.20.20.20.91.01.10.70.50.5IP/Ethernet

WindstreamCost Center excluding M&IDS3 and AboveDS3 and Above3.63.63.33.43.23.12.92.82.72.72.92.82.72.62.62.52.42.410.59.68.48.47.97.3TDM

WindstreamCost Center excluding M&IEthernet Over FiberEthernet Over Fiber30.030.730.730.630.330.330.430.330.031.030.730.430.230.029.829.729.329.191.491.290.692.290.088.1IP/Ethernet

WindstreamCost Center excluding M&IEthernet Over HFCEthernet Over HFC0.40.60.70.70.70.80.80.80.90.91.01.01.01.11.21.41.31.41.72.22.52.93.34.0IP/Ethernet

WindstreamCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN0.60.60.60.50.50.50.50.50.50.30.10.10.10.10.10.10.10.11.81.61.40.50.40.3TDM

WindstreamCost Center excluding M&IInternational AccessInternational Access0.30.30.20.20.20.20.20.20.20.00.00.0- 0- 0- 0- 0- 0- 00.70.70.60.1- 0- 0IP/Ethernet

WindstreamCost Center excluding M&IDS0DS05.25.85.75.65.55.65.55.55.35.25.15.15.04.95.04.84.84.716.616.716.315.415.014.3TDM

WindstreamCost Center excluding M&IOff-Net ResaleOff-Net Resale7.08.38.18.08.07.87.67.67.57.77.97.87.97.67.67.47.37.323.423.822.823.323.122.0TDM

WindstreamCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds0.20.30.40.60.80.80.80.80.80.80.70.80.70.70.60.40.50.50.82.22.42.22.01.4TDM

Customer Access80.783.182.081.680.680.179.277.876.776.975.774.674.473.172.170.969.468.5245.8242.3233.7227.1219.6208.8

WindstreamCost Center excluding M&ICharter DCharter D2.62.52.42.42.32.32.22.22.12.12.02.02.01.91.91.91.81.87.57.06.66.15.75.4CLEC Consumer

WindstreamCost Center excluding M&IDSLDSL1.31.31.21.21.21.21.11.11.01.01.01.00.90.90.90.90.90.93.83.53.23.02.82.7CLEC Consumer

WindstreamCost Center excluding M&IHyperlink InterconnectHyperlink1.01.31.51.51.41.51.41.31.21.21.11.01.21.11.00.91.01.13.84.43.83.23.23.1CLEC Consumer

WindstreamCost Center excluding M&ISecurity VASSecurity VAS0.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.70.70.70.70.70.7CLEC Consumer

WindstreamCost Center excluding M&IWeb Hosting InterconnectWeb Hosting0.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.40.40.4CLEC Consumer

WindstreamCost Center excluding M&IConsumer Interconnect OtherConsumer Other0.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.60.60.60.50.50.5CLEC Consumer

Consumer MRC5.45.65.85.75.55.55.25.14.94.84.74.54.64.44.34.24.34.316.816.615.214.013.312.7

WindstreamConsumer CLEC InterconnectNon-Recurring ChargesConsumer NRC0.00.2(0.0)0.00.1(0.3)(0.1)(0.3)0.00.2(0.3)0.10.6(0.2)0.20.10.60.60.2(0.2)(0.4)0.10.61.3

Consumer Interconnect5.45.85.75.75.65.25.14.94.95.14.44.65.24.34.44.34.94.917.016.514.914.113.914.1

WindstreamCost Center excluding M&IMetro BackhaulMetro Backhaul17.117.317.416.916.616.216.015.815.616.217.617.217.016.716.215.915.715.451.849.747.451.049.947.0TDM

WindstreamCost Center excluding M&IOther BackhaulOther Backhaul0.30.30.30.20.20.20.20.20.20.10.00.00.00.00.00.00.00.00.80.70.70.10.00.0TDM

WindstreamCost Center excluding M&IColocation ChargesColocation Charges8.79.09.09.09.09.09.09.18.99.29.29.39.29.19.09.09.09.026.727.127.027.627.427.0TDM

WindstreamCost Center excluding M&ILonghaulLonghaul2.42.32.32.32.22.22.12.12.01.20.10.00.00.00.00.00.00.07.06.76.21.30.00.0IP/Ethernet

WindstreamCost Center excluding M&INetwork CoreNetwork Core0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.00.0- 00.30.30.20.00.00.0IP/Ethernet

WindstreamCost Center excluding M&IInternet TransitInternet Transit0.10.20.20.20.10.10.10.10.10.10.10.10.10.10.10.10.20.20.40.40.40.30.40.5IP/Ethernet

WindstreamCost Center excluding M&IBroadband AccessBroadband Access0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.00.00.00.20.20.20.00.00.0IP/Ethernet

WindstreamCost Center excluding M&IBuilding AccessBuilding Access0.40.40.40.40.40.40.40.40.40.40.40.40.40.50.50.40.50.51.11.21.21.31.41.4IP/Ethernet

WindstreamCost Center excluding M&IENNI AccessENNI Access1.61.61.61.61.61.61.61.61.60.90.20.20.20.20.10.10.10.14.84.94.71.30.50.4IP/Ethernet

Network Access30.631.231.230.730.330.029.629.429.028.227.627.326.926.626.025.625.525.293.191.088.083.079.576.3

WindstreamCost Center excluding M&IILEC - NetworkNetwork ILEC2.32.42.32.12.02.01.91.91.81.71.11.41.51.41.31.21.51.57.16.15.64.24.24.2TDM

WindstreamCost Center excluding M&IPole Attachment RentPole Attachment Rent3.33.23.23.23.23.23.33.33.33.33.33.33.33.33.33.33.33.39.79.79.89.89.89.8

WindstreamCost Center excluding M&IFiber & ConduitFiber & Conduit2.02.32.32.32.32.32.32.32.32.22.12.12.12.02.12.02.02.06.66.96.96.46.26.0

WindstreamCost Center excluding M&IIRU Lease ExpenseIRU Lease Expense2.42.42.42.42.42.42.42.52.42.52.62.72.82.92.93.03.03.07.27.27.37.88.69.0

WindstreamCost Center excluding M&IRack & Floor SpaceRack & Floor Space1.61.71.71.81.91.81.81.71.81.51.51.31.11.01.01.01.01.05.15.55.34.33.12.9

WindstreamCost Center excluding M&ISwitch & Central OfficeSwitch & Central Office3.23.33.33.33.43.43.53.53.53.53.53.53.63.63.63.63.63.69.910.210.410.510.710.8

WindstreamCost Center excluding M&IOther Leased FacilitiesOther Leased Facilities1.82.02.01.91.91.71.71.71.71.81.71.71.71.71.71.71.71.75.85.55.15.25.25.0

WindstreamCost Center excluding M&IPole Attachment NRCPole Attachment NRC0.0(0.3)0.1(0.3)0.0(0.2)(0.3)(0.4)(0.0)(0.0)0.00.1(0.1)(0.0)0.0(0.1)(0.2)0.0(0.2)(0.4)(0.7)0.1(0.1)(0.3)

WindstreamCost Center excluding M&ILeased Network Facilities - NRCLeased Network Facilities - NRC0.40.4(0.2)0.5(0.4)(0.1)0.20.50.20.1(0.2)0.30.10.2(0.3)(0.0)0.10.10.60.00.90.20.00.2

Leased Network Facility14.715.014.915.314.814.514.915.015.114.814.614.814.514.714.314.514.414.644.644.645.044.243.543.5

WindstreamCost Center excluding M&ILD MRCLD MRC1.21.21.21.21.21.21.11.11.11.41.81.91.81.81.71.71.61.83.73.63.35.15.45.0

WindstreamCost Center excluding M&ISS7 ExpenseSS7 Expense0.50.60.50.50.60.60.50.50.50.40.80.40.30.40.40.30.30.31.61.71.61.71.10.9

WindstreamCost Center excluding M&ICaller IDCaller ID0.30.30.30.30.40.40.30.30.40.40.40.40.30.30.30.30.30.30.91.01.01.11.01.0

WindstreamCost Center excluding M&IRecip CompRecip Comp0.40.40.40.40.40.40.40.30.40.30.20.20.20.20.10.10.10.11.11.11.10.80.40.3

WindstreamCost Center excluding M&ILocal TransitLocal Transit0.20.20.20.20.20.20.20.20.20.20.20.20.20.10.20.20.20.20.60.60.50.50.50.6

WindstreamCost Center excluding M&IDirectory ListingDirectory Listing0.50.50.50.50.50.50.50.40.40.40.40.40.40.40.40.40.40.41.61.41.41.21.11.1

WindstreamCost Center excluding M&IOperator ServicesOperator Services0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.10.10.10.10.10.1

WindstreamCost Center excluding M&IDirectory AssistanceDirectory Assistance0.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.30.30.3

WindstreamCost Center excluding M&I8YY Expense8YY Expense0.20.40.30.20.20.20.30.20.20.20.20.20.20.20.20.30.20.20.90.60.70.70.70.7

WindstreamCost Center excluding M&IWireless UsageWireless Usage0.20.20.10.00.10.00.00.10.20.00.00.00.00.00.00.00.00.00.40.10.30.10.10.1

WindstreamCost Center excluding M&IVoice Non-RecurringVoice Non-Recurring(0.1)(0.2)(0.0)(0.1)(0.1)(0.1)(0.0)(0.0)(0.1)0.1(0.2)0.1(0.2)(0.3)(0.0)0.20.00.2(0.3)(0.3)(0.1)(0.0)(0.5)0.4

WindstreamCost Center excluding M&IWholesale LD UsageWholesale LD Usage0.10.00.0(0.0)0.00.0(0.0)(0.0)(0.0)0.00.0(0.0)(0.0)0.0(0.0)- 00.00.00.10.0(0.0)0.00.00.0

WindstreamCost Center excluding M&ILong Distance UsageLong Distance Usage6.16.56.26.25.65.35.75.15.24.84.85.05.05.25.05.75.55.818.717.116.014.615.217.1

Voice9.710.29.89.79.18.79.18.48.78.58.88.98.48.68.49.48.89.429.727.426.226.225.427.5

WindstreamINTCNCT_excl_CON Settlement ChargesSettlement Charges0.40.30.30.40.40.30.30.30.40.30.30.10.20.20.20.20.2(0.1)1.01.11.10.60.50.3

WindstreamINTCNCT_excl_CON Non-Exempt TaxesNon-Exempt Taxes0.50.40.50.70.60.50.60.60.60.60.80.60.90.70.70.70.60.71.51.81.82.02.32.1

WindstreamINTCNCT_excl_CON Fractional - InstallationFractional - Installation- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 01.2- 0- 0- 0- 0- 01.2

WindstreamINTCNCT_excl_CON Fractional - DisconnectFractional - Disconnect- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(1.6)- 0- 0- 0- 0- 0(1.6)

WindstreamINTCNCT_excl_CON Fractional - ProjectFractional - Project- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(0.2)- 0- 0- 0- 0- 0(0.2)

WindstreamINTCNCT_excl_CON Fractional - Rate ChangeFractional - Rate Change- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00.4- 0- 0- 0- 0- 00.4

WindstreamINTCNCT_excl_CON Fractional - OtherFractional - Other0.5(0.4)(0.3)(0.4)(0.3)(0.1)0.10.2(0.2)(0.0)0.3(0.2)0.4(1.1)(0.2)(0.4)(0.4)0.0(0.1)(0.8)0.10.1(0.8)(0.8)

WindstreamINTCNCT_excl_CON BB/MRC OOP DisputesBB/MRC OOP Disputes(0.4)(2.4)(0.1)(1.3)(0.6)(0.4)(0.3)(1.5)(0.2)(1.5)(2.1)0.2(3.5)1.8(2.9)(0.7)(1.8)(0.0)(2.9)(2.3)(2.0)(3.4)(4.6)(2.5)

WindstreamINTCNCT_excl_CON Disputes - Cost AvoidanceDisputes - Cost Avoidance- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(2.3)- 0- 0- 0- 0- 0(2.3)

WindstreamINTCNCT_excl_CON Disputes - InitiativeDisputes - Initiative- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0(1.9)- 0- 0- 0- 0- 0(1.9)

WindstreamINTCNCT_excl_CON Disputes - OptimizationDisputes - Optimization- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 0- 00.2- 0- 0- 0- 0- 00.2

WindstreamINTCNCT_excl_CON MRC Charges OOPMRC Charges OOP0.50.50.40.10.20.30.60.00.20.71.60.50.30.50.30.40.60.01.30.50.92.71.11.0

WindstreamINTCNCT_excl_CON MRC Projects OOPMRC Projects OOP0.40.50.10.10.50.50.90.91.10.80.81.80.70.81.00.81.50.80.91.12.93.42.63.1

WindstreamINTCNCT_excl_CON MRC Ethernet OOPMRC Ethernet OOP0.10.10.10.10.30.10.00.00.10.10.10.20.1- 0- 0- 0- 0- 00.30.60.20.40.1- 0

WindstreamINTCNCT_excl_CON Early Termination FeeEarly Termination Fee0.61.31.11.11.51.11.21.01.01.10.41.11.11.50.81.11.02.23.03.73.32.53.44.2

WindstreamINTCNCT_excl_CON Cancellation FeeCancellation Fee0.20.40.40.30.40.40.30.30.50.30.20.20.40.40.20.30.3(0.0)1.01.11.10.71.10.6

WindstreamINTCNCT_excl_CON Disconnect FeeDisconnect Fee0.10.20.10.10.10.10.00.10.10.00.10.00.00.00.10.00.1- 00.40.20.20.10.10.1

WindstreamINTCNCT_excl_CON Late FeeLate Fee0.30.30.20.30.30.30.50.60.60.40.20.10.80.30.40.10.61.90.80.81.60.71.62.7

WindstreamINTCNCT_excl_CON Expedite FeeExpedite Fee0.00.00.00.00.00.00.0(0.0)0.00.00.00.00.00.00.00.00.00.10.10.10.00.00.00.1

WindstreamINTCNCT_excl_CON Project FeeProject Fee0.30.40.50.50.50.90.30.40.30.40.90.80.70.80.50.30.90.11.21.91.02.11.91.3

WindstreamINTCNCT_excl_CON Repairs and Maintenance FeeRepairs and Maintenance Fee0.70.80.70.70.60.60.50.50.50.50.20.60.50.60.40.50.70.72.21.91.51.31.51.9

WindstreamINTCNCT_excl_CON CreditsCredits(0.2)(0.5)(0.4)(0.5)(0.3)(0.4)(0.3)(0.3)(0.2)(0.2)(0.0)(0.7)(0.3)(0.3)(0.3)(0.3)(0.3)(0.2)(1.2)(1.3)(0.9)(0.8)(0.9)(0.8)

WindstreamINTCNCT_excl_CON Disputes ReservesDisputes Reserves0.0- 0- 0(0.0)(0.0)(0.0)- 0(0.0)- 0- 0- 0- 0- 0- 0- 0- 0- 00.00.0(0.0)(0.0)- 0- 00.0

WindstreamINTCNCT_excl_CON Building Access NRCBuilding Access NRC0.10.00.00.00.00.10.00.00.00.00.00.00.00.00.00.00.00.00.10.10.10.00.00.1

WindstreamINTCNCT_excl_CON Other InterconnectOther Interconnect0.3(2.2)0.3(0.0)0.00.2(0.0)0.01.5(0.2)1.21.00.3(0.1)(0.1)(0.0)0.21.7(1.7)0.21.51.90.11.9

Non-Recurring Charges4.3(0.3)3.82.14.24.65.03.16.33.24.86.42.76.41.13.04.23.97.810.814.414.310.111.1

WindstreamCost Center excluding M&IAT&TAT&T(2.0)(2.1)(2.1)(2.0)(2.0)(3.3)(0.1)- 0- 0- 0- 0- 00.2- 0- 0- 0- 0- 0(6.1)(7.3)(0.1)- 00.2- 0

WindstreamCost Center excluding M&ICenturylinkCenturylink(1.0)(1.2)(1.1)(1.1)(1.1)(0.5)(1.0)(1.1)(0.8)(0.8)(0.6)(0.5)(0.8)(0.8)0.3- 0(0.8)0.0(3.3)(2.7)(2.9)(1.9)(1.3)(0.8)

WindstreamCost Center excluding M&IFrontierFrontier- 00.1- 0- 0- 0- 0- 0- 0- 0- 0- 00.10.00.1- 0- 00.00.10.1- 0- 00.10.10.1

WindstreamCost Center excluding M&IVerizonVerizon- 0- 0- 0- 0- 0(0.0)- 0- 0- 0- 0- 0- 0- 00.0- 0- 0- 0- 0- 0(0.0)- 0- 00.0- 0

Spend Plan Credit(3.0)(3.2)(3.2)(3.1)(3.1)(3.8)(1.1)(1.1)(0.8)(0.8)(0.6)(0.4)(0.6)(0.7)0.3- 0(0.8)0.1(9.4)(10.0)(3.0)(1.8)(1.0)(0.7)

Interconnect Expense144.8144.3146.6144.0143.5141.2143.6139.4141.7137.5136.4137.6132.9134.4128.0128.9127.8128.2435.6428.7424.7411.4395.3384.8

Summ4Q

Last Tweleve Months3Q vs. 2Q4Q vs. 3Q

3Q174Q171Q182Q183Q184Q18LTM% OfBet / (Wor)Bet / (Wor)

TDM1511471391311261165124.2%7.7%

IP/Ethernet9595959694933772.1%1.3%

Last Mile Access24624223422722020988961%3.3%4.9%

TDM898481783324.0%3.1%

IP/Ethernet43221112.8%-2.4%

Network Access9287838034224%4.3%3.0%

Voice/Other1451425353505220915%6.8%-4.5%`

Interconnect3913843793673523411,440100%4.0%3.1%

Annualized1,5651,5361,5171,4691,4101,36516.2%12.6%

1,6001,6001,6001,6001,6001,600

2.2%4.0%5.2%8.2%11.9%14.7%

Please Update below Table

3Q183Q vs 2Q4Q182Q vs. 1Q

AnnualizedSequentialAnnualizedSequential

TDM5034.2%TDM4657.7%

IP/Ethernet3752.1%IP/Ethernet3711.3%

Last Mile Access8793.3%Last Mile Access8354.9%

TDM3234.0%TDM3133.1%

IP/Ethernet912.8%IP/Ethernet9(2.4%)

Network Access3324.3%Network Access3223.0%

0.0%00.0%

Voice/Other1996.8%Voice/Other208(4.5%)

Interconnect1,4104.0%Interconnect1,365.413.1%

3Q18

ReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

InvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestor

FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY17FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)


FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18FY18FY18FY18FY17FY17FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJunJulAugSepQ-T-D(Sep)Q-T-D(Dec)Q-T-D(Mar)Q-T-D(Jun)Q-T-D(Sep)

EntityFWGAccountActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActualActual

CustomerTDM151147139131126


CLEC Consumer- 0- 0- 0- 0- 0




IP/Ethernet(11)(2)


IP/Ethernet432

Total Interconnect excl LNF391.28383.98379.26367.29352.43

WindstreamCost Center excluding M&IDS1 AccessDS1 Access33.232.732.131.631.130.730.129.028.427.927.126.426.525.825.197.993.487.581.477.4TDM

WindstreamCost Center excluding M&IWireless AccessWireless Access0.30.30.30.30.30.30.30.30.40.30.20.20.20.20.20.91.01.10.70.5IP/Ethernet

WindstreamCost Center excluding M&IDS3 and AboveDS3 and Above3.63.63.33.43.23.12.92.82.72.72.92.82.72.62.610.59.68.48.47.9TDM

WindstreamCost Center excluding M&IEthernet Over FiberEthernet Over Fiber30.030.730.730.630.330.330.430.330.031.030.730.430.230.029.891.491.290.692.290.0IP/Ethernet

WindstreamCost Center excluding M&IEthernet Over HFCEthernet Over HFC0.40.60.70.70.70.80.80.80.90.91.01.01.01.11.21.72.22.52.93.3IP/Ethernet

WindstreamCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN0.60.60.60.50.50.50.50.50.50.30.10.10.10.10.11.81.61.40.50.4TDM

WindstreamCost Center excluding M&IInternational AccessInternational Access0.30.30.20.20.20.20.20.20.20.00.00.0- 0- 0- 00.70.70.60.1- 0IP/Ethernet

WindstreamCost Center excluding M&IDS0DS05.25.85.75.65.55.65.55.55.35.25.15.15.04.95.016.616.716.315.415.0TDM

WindstreamCost Center excluding M&IOff-Net ResaleOff-Net Resale7.08.38.18.08.07.87.67.67.57.77.97.87.97.67.623.423.822.823.323.1TDM

WindstreamCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds0.20.30.40.60.80.80.80.80.80.80.70.80.70.70.60.82.22.42.22.0TDM

Customer Access80.783.182.081.680.680.179.277.876.776.975.774.674.473.172.1245.8242.3233.7227.1219.6

WindstreamCost Center excluding M&ICharter DCharter D2.62.52.42.42.32.32.22.22.12.12.02.02.01.91.97.57.06.66.15.7CLEC Consumer

WindstreamCost Center excluding M&IDSLDSL1.31.31.21.21.21.21.11.11.01.01.01.00.90.90.93.83.53.23.02.8CLEC Consumer

WindstreamCost Center excluding M&IHyperlink InterconnectHyperlink1.01.31.51.51.41.51.41.31.21.21.11.01.21.11.03.84.43.83.23.2CLEC Consumer

WindstreamCost Center excluding M&ISecurity VASSecurity VAS0.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.70.70.70.70.7CLEC Consumer

WindstreamCost Center excluding M&IWeb Hosting InterconnectWeb Hosting0.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.40.4CLEC Consumer

WindstreamCost Center excluding M&IConsumer Interconnect OtherConsumer Other0.20.20.20.20.20.20.20.20.20.20.20.20.20.20.20.60.60.60.50.5CLEC Consumer

Consumer Interconnect5.45.65.85.75.55.55.25.14.94.84.74.54.64.44.316.816.615.214.013.3

WindstreamConsumer CLEC InterconnectNon-Recurring ChargesConsumer NRC0.00.2(0.0)0.00.1(0.3)(0.1)(0.3)0.00.2(0.3)0.10.6(0.2)0.20.2(0.2)(0.4)0.10.6

Consumer Interconnect5.45.85.75.75.65.25.14.94.95.14.44.65.24.34.417.016.514.914.113.9

WindstreamCost Center excluding M&IMetro BackhaulMetro Backhaul18.518.818.718.117.717.317.0044416.8044516.5577017.2886918.7683818.3112218.1424917.8541217.3154355.953.050.454.453.3TDM

WindstreamCost Center excluding M&IOther BackhaulOther Backhaul0.30.30.30.30.20.20.20.20.30.10.00.00.00.00.00.90.70.70.10.0TDM

WindstreamCost Center excluding M&IColocation ChargesColocation Charges8.79.09.09.09.09.09.09.18.99.29.29.39.29.19.026.727.127.027.627.4TDM

WindstreamCost Center excluding M&ILonghaulLonghaul2.82.72.72.62.62.52.42.42.31.40.10.00.00.00.08.17.77.21.50.0IP/Ethernet

WindstreamCost Center excluding M&INetwork CoreNetwork Core0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.30.30.30.10.0IP/Ethernet

WindstreamCost Center excluding M&IInternet TransitInternet Transit0.10.20.20.20.10.10.10.10.10.10.10.10.10.10.10.40.40.40.30.4IP/Ethernet

WindstreamCost Center excluding M&IBroadband AccessBroadband Access0.10.10.10.10.10.10.10.10.10.00.00.00.00.00.00.20.20.20.00.0IP/Ethernet

WindstreamCost Center excluding M&IBuilding AccessBuilding Access0.40.40.40.40.40.40.40.40.40.40.40.40.40.50.51.11.21.21.31.4IP/Ethernet

WindstreamCost Center excluding M&IENNI AccessENNI Access1.61.71.71.71.71.61.61.61.60.90.30.20.20.20.15.05.04.91.40.5IP/Ethernet

Network Access32.533.233.032.431.931.431.030.830.429.528.828.428.127.827.198.695.792.286.783.0

WindstreamCost Center excluding M&IPole Attachment RentPole Attachment Rent3.33.23.23.23.23.23.33.33.33.33.33.33.33.33.39.79.79.89.89.8

WindstreamCost Center excluding M&IFiber & ConduitFiber & Conduit2.02.32.32.32.32.32.32.32.32.22.12.12.12.02.16.66.96.96.46.2

WindstreamCost Center excluding M&IIRU Lease ExpenseIRU Lease Expense2.42.42.42.42.42.42.42.52.42.52.62.72.82.92.97.27.27.37.88.6

WindstreamCost Center excluding M&IRack & Floor SpaceRack & Floor Space1.61.71.71.81.91.81.81.71.81.51.51.31.11.01.05.15.55.34.33.1

WindstreamCost Center excluding M&ISwitch & Central OfficeSwitch & Central Office3.23.33.33.33.43.43.53.53.53.53.53.53.63.63.69.910.210.410.510.7

WindstreamCost Center excluding M&IOther Leased FacilitiesOther Leased Facilities1.82.02.01.91.91.71.71.71.71.81.71.71.71.71.75.85.55.15.25.2

WindstreamCost Center excluding M&IPole Attachment NRCPole Attachment NRC0.0(0.3)0.1(0.3)0.0(0.2)(0.3)(0.4)(0.0)(0.0)0.00.1(0.1)(0.0)0.0(0.2)(0.4)(0.7)0.1(0.1)

WindstreamCost Center excluding M&ILeased Network Facilities - NRCLeased Network Facilities - NRC0.40.4(0.2)0.5(0.4)(0.1)0.20.50.20.1(0.2)0.30.10.2(0.3)0.60.00.90.20.0

Leased Network Facility14.715.014.915.314.814.514.915.015.114.814.614.814.514.714.344.644.645.044.243.5

WindstreamCost Center excluding M&ILD MRCLD MRC1.31.31.31.31.31.21.21.21.11.52.02.01.91.91.83.93.83.55.45.7

WindstreamCost Center excluding M&ISS7 ExpenseSS7 Expense0.91.01.01.01.01.00.90.90.90.80.60.60.40.60.52.92.92.71.91.6

WindstreamCost Center excluding M&ICaller IDCaller ID0.30.30.30.30.40.40.30.30.40.40.40.40.30.30.30.91.01.01.11.0

WindstreamCost Center excluding M&IRecip CompRecip Comp0.40.40.40.40.40.40.40.30.40.30.20.20.20.20.11.11.11.10.80.4

WindstreamCost Center excluding M&ILocal TransitLocal Transit0.20.20.20.20.20.20.20.20.20.20.20.20.20.10.20.60.60.50.50.5

WindstreamCost Center excluding M&IDirectory ListingDirectory Listing0.50.50.50.50.50.50.50.40.40.40.40.40.40.40.41.61.41.41.21.1

WindstreamCost Center excluding M&IOperator ServicesOperator Services0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.10.10.10.10.1

WindstreamCost Center excluding M&IDirectory AssistanceDirectory Assistance0.10.10.10.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.30.3

WindstreamCost Center excluding M&I8YY Expense8YY Expense0.20.40.30.20.20.20.30.20.20.20.20.20.20.20.20.90.60.70.70.7

WindstreamCost Center excluding M&IWireless UsageWireless Usage0.20.20.10.00.10.00.00.10.20.00.00.00.00.00.00.40.10.30.10.1

WindstreamCost Center excluding M&IVoice Non-RecurringVoice Non-Recurring(0.1)(0.2)(0.0)(0.1)(0.1)(0.1)(0.0)(0.0)(0.1)0.1(0.2)0.1(0.2)(0.3)(0.0)(0.3)(0.3)(0.1)(0.0)(0.5)

WindstreamCost Center excluding M&IWholesale LD UsageWholesale LD Usage0.10.00.0(0.0)0.00.0(0.0)(0.0)(0.0)0.00.0(0.0)(0.0)0.0(0.0)0.10.0(0.0)0.00.0

WindstreamCost Center excluding M&ILong Distance UsageLong Distance Usage6.16.56.26.25.65.35.75.15.24.84.85.05.05.25.018.717.116.014.615.2

Voice10.210.710.410.29.59.29.58.99.18.98.79.18.68.88.731.228.927.526.726.2

WindstreamCost Center excluding M&ISettlement ChargesSettlement Charges0.40.30.30.40.40.30.30.30.40.30.30.10.20.20.21.01.11.10.60.5

WindstreamCost Center excluding M&INon-Exempt TaxesNon-Exempt Taxes0.50.40.50.70.60.70.60.70.60.60.80.70.90.70.71.52.01.82.12.3

WindstreamCost Center excluding M&IFractionalFractional0.6(0.1)(0.2)(0.5)(0.3)(0.1)0.10.1(0.3)(0.0)0.2(0.5)0.4(1.1)(0.2)0.2(0.9)(0.1)(0.3)(0.9)

WindstreamCost Center excluding M&IBB/MRC OOP DisputesBB/MRC OOP Disputes(0.5)(2.4)(0.3)(1.3)(0.6)(0.7)(0.5)(1.8)(0.4)(1.5)(2.4)0.1(3.5)1.5(3.0)(3.1)(2.6)(2.7)(3.9)(5.0)

WindstreamCost Center excluding M&IMRC Charges OOPMRC Charges OOP0.40.50.30.10.1(0.0)0.6(0.0)0.20.71.50.40.30.40.31.20.20.82.61.0

WindstreamCost Center excluding M&IMRC Projects OOPMRC Projects OOP0.40.50.10.10.50.50.90.91.10.80.81.80.70.81.01.01.12.93.42.6

WindstreamCost Center excluding M&IMRC Ethernet OOPMRC Ethernet OOP0.10.10.10.10.30.10.00.00.10.10.10.20.1- 0- 00.30.60.20.40.1

WindstreamCost Center excluding M&IEarly Termination FeeEarly Termination Fee0.61.31.11.11.71.31.41.11.31.30.51.61.81.71.03.04.13.83.44.6

WindstreamCost Center excluding M&ICancellation FeeCancellation Fee0.20.40.40.30.40.40.30.30.50.30.20.20.40.40.21.01.11.10.71.1

WindstreamCost Center excluding M&IDisconnect FeeDisconnect Fee0.10.20.10.10.10.10.00.10.10.00.10.00.00.00.10.40.20.20.10.1

WindstreamCost Center excluding M&ILate FeeLate Fee0.30.30.20.30.30.30.60.60.60.40.20.10.80.30.50.80.91.70.81.6

WindstreamCost Center excluding M&IExpedite FeeExpedite Fee0.00.00.00.00.00.00.0(0.0)0.00.00.00.00.00.00.00.10.10.00.00.0

WindstreamCost Center excluding M&IProject FeeProject Fee0.30.40.50.50.51.00.30.40.30.40.90.80.70.80.51.22.01.02.12.0

WindstreamCost Center excluding M&IRepairs and Maintenance FeeRepairs and Maintenance Fee0.70.80.70.70.60.60.50.50.50.50.20.60.50.60.42.31.91.51.31.5

WindstreamCost Center excluding M&ICreditsCredits(0.2)(0.5)(0.4)(0.5)(0.4)(0.4)(0.3)(0.3)(0.2)(0.2)(0.0)(0.7)(0.3)(0.3)(0.3)(1.2)(1.3)(0.9)(0.8)(0.9)

WindstreamCost Center excluding M&IDisputes ReservesDisputes Reserves0.0- 0- 0(0.0)(0.0)(0.0)- 0(0.0)- 0- 0- 0- 0- 0- 0- 00.0(0.0)(0.0)- 0- 0

WindstreamCost Center excluding M&IBuilding Access NRCBuilding Access NRC0.10.00.00.00.00.10.00.00.00.00.00.00.00.00.00.10.10.10.00.0

WindstreamCost Center excluding M&IOther InterconnectOther Interconnect0.3(2.3)0.30.00.00.2(0.0)0.01.5(0.2)1.21.00.3(0.1)(0.1)(1.7)0.21.52.00.1

Non-Recurring Charges4.3(0.0)3.82.14.34.34.92.86.33.44.56.53.26.21.38.010.714.014.410.7

WindstreamConsumer CLEC InterconnectNon-recurring ChargesConsumer NRC0.00.2(0.0)0.00.1(0.3)(0.1)(0.3)0.00.2(0.3)0.10.6(0.2)0.20.2(0.2)(0.4)0.10.6

Non-Recurring Charges4.30.23.72.14.44.04.82.66.33.74.26.63.86.11.48.210.513.714.511.3

WindstreamCost Center excluding M&IAT&TAT&T(2.0)(2.1)(2.1)(2.0)(2.0)(3.3)(0.1)- 0- 0- 0- 0- 00.2- 0- 0(6.1)(7.3)(0.1)- 00.2

WindstreamCost Center excluding M&ICenturylinkCenturylink(1.0)(1.2)(1.1)(1.1)(1.1)(0.5)(1.0)(1.1)(0.8)(0.8)(0.6)(0.5)(0.8)(0.8)0.3(3.3)(2.7)(2.9)(1.9)(1.3)

WindstreamCost Center excluding M&IFrontierFrontier- 00.1- 0- 0- 0- 0- 0- 0- 0- 0- 00.10.00.1- 00.1- 0- 00.10.1

WindstreamCost Center excluding M&IVerizonVerizon- 0- 0- 0- 0- 0(0.0)- 0- 0- 0- 0- 0- 0- 00.0- 0- 0(0.0)- 0- 00.0

Spend Plan Credit(3.0)(3.2)(3.2)(3.1)(3.1)(3.8)(1.1)(1.1)(0.8)(0.8)(0.6)(0.4)(0.6)(0.7)0.3(9.4)(10.0)(3.0)(1.8)(1.0)

Interconnect Expense144.8144.7146.5144.1143.7140.6143.4138.8141.7137.9135.8137.8134.0134.1128.4436.1428.4423.9411.5396.5

Summ3Q

Last Tweleve Months2Q vs. 1Q2Q182Q vs. 1Q

3Q174Q171Q182Q183Q18LTMBet / (Wor)AnnualizedSequential

TDM1511471391311265435.4%TDM5255.4%

IP/Ethernet9595959694380-1.0%IP/Ethernet383-1.0%

Last Mile Access2462422342272209232.8%Last Mile Access9092.8%0.62

TDM8984812535.1%TDM3365.1%

IP/Ethernet432828.5%IP/Ethernet1028.5%

Network Access9287832626.0%Network Access3476.0%0.24

Voice/Other145142535350298-0.2%Voice/Other214-0.2%0.15`

Interconnect3913843793673521,4833.2%Interconnect1,4693.2%

16000.1262004274

3523416938.2%

26745282754

(0)(0)

Please Update below Table

2Q182Q vs. 1Q3Q182Q vs. 1Q

AnnualizedSequentialAnnualizedSequential

TDM5255.4%TDM- 00.0%

IP/Ethernet383(1.0%)IP/Ethernet- 00.0%

Last Mile Access9092.8%Last Mile Access- 00.0%

TDM3365.1%TDM- 00.0%

IP/Ethernet1028.5%IP/Ethernet- 00.0%

Network Access3476.0%Network Access- 00.0%

Voice/Other214(0.2%)Voice/Other- 00.0%

Interconnect1,4693.2%Interconnect- 00.0%

2Q18

ReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReportingReporting

InvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestorInvestor

FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJun


FY17FY17FY17FY17FY17FY17FY18FY18FY18FY18FY18FY18

JulAugSepOctNovDecJanFebMarAprMayJun

EntityFWGAccountActualActualActualActualActualActualActualActualActualActualActualActual3Q174Q171Q182Q18

WindstreamCost Center excluding M&IDS1 AccessDS1 Access33.232.732.131.631.130.730.129.028.427.927.126.497.993.487.581.4TDM

WindstreamCost Center excluding M&IWireless AccessWireless Access0.30.30.30.30.30.30.30.30.40.30.20.20.91.01.10.7IP/Ethernet

WindstreamCost Center excluding M&IDS3 and AboveDS3 and Above3.63.63.33.43.23.12.92.82.72.72.92.810.59.68.48.4TDM

WindstreamCost Center excluding M&IEthernet Over FiberEthernet Over Fiber30.030.730.730.630.330.330.430.330.031.030.730.491.491.290.692.2IP/Ethernet

WindstreamCost Center excluding M&IEthernet Over HFCEthernet Over HFC0.40.60.70.70.70.80.80.80.90.91.01.01.72.22.52.9IP/Ethernet

WindstreamCost Center excluding M&IMPLS/Frame Relay/VPNMPLS/Frame Relay/VPN0.60.60.60.50.50.50.50.50.50.30.10.11.81.61.40.5TDM

WindstreamCost Center excluding M&IInternational AccessInternational Access0.30.30.20.20.20.20.20.20.20.00.00.00.70.70.60.1IP/Ethernet

WindstreamCost Center excluding M&IDS0DS05.25.85.75.65.55.65.55.55.35.25.15.116.616.716.315.4TDM

WindstreamCost Center excluding M&IOff-Net ResaleOff-Net Resale7.08.38.18.08.07.87.67.67.57.77.97.823.423.822.823.3TDM

WindstreamCost Center excluding M&ICustomer Disconnect HoldsCustomer Disconnect Holds0.20.30.40.60.80.80.80.80.80.80.70.80.82.22.42.2TDM

Customer Access80.783.182.081.680.680.179.277.876.776.975.774.6245.8242.3233.7227.1-0Check

WindstreamCost Center excluding M&ICharter DCharter D2.62.52.42.42.32.32.22.22.12.12.02.07.57.06.66.1CLEC Consumer

WindstreamCost Center excluding M&IDSLDSL1.31.31.21.21.21.21.11.11.01.01.01.03.83.53.23.0CLEC Consumer

WindstreamCost Center excluding M&IHyperlink InterconnectHyperlink1.01.31.51.51.41.51.41.31.21.21.11.03.84.43.83.2CLEC Consumer

WindstreamCost Center excluding M&ISecurity VASSecurity VAS0.20.20.20.20.20.20.20.20.20.20.20.20.70.70.70.7CLEC Consumer

WindstreamCost Center excluding M&IWeb Hosting InterconnectWeb Hosting0.10.10.10.10.10.10.10.10.10.10.10.10.40.40.40.4CLEC Consumer

WindstreamCost Center excluding M&IConsumer Interconnect OtherConsumer Other0.20.20.20.20.20.20.20.20.20.20.20.20.60.60.60.5CLEC Consumer

Consumer Interconnect5.45.65.85.75.55.55.25.14.94.84.74.516.816.615.214.037-0CheckFY18FY18FY18FY18FY18FY18

WindstreamConsumer CLEC InterconnectNon-Recurring ChargesJanFebMarAprMayJun

ActualActualActualActualActualActual

WindstreamCost Center excluding M&IMetro BackhaulMetro Backhaul18.518.818.718.117.717.319.819.619.319.018.818.355.953.058.756.0TDM-0.131

WindstreamCost Center excluding M&IOther BackhaulOther Backhaul0.30.30.30.30.20.21.01.01.00.40.00.00.90.73.00.4TDM-0.4

WindstreamCost Center excluding M&IColocation ChargesColocation Charges8.79.09.09.09.09.09.09.18.99.29.29.326.727.127.027.6TDM0.287

WindstreamCost Center excluding M&ILonghaulLonghaul2.82.72.72.62.62.50.20.20.10.10.10.08.17.70.60.2IP/Ethernet

WindstreamCost Center excluding M&INetwork CoreNetwork Core0.10.10.10.10.10.10.10.10.10.00.00.00.30.30.30.1IP/Ethernet

WindstreamCost Center excluding M&IInternet TransitInternet Transit0.10.20.20.20.10.10.10.10.10.10.10.10.40.40.40.3IP/Ethernet0.35

WindstreamCost Center excluding M&IBroadband AccessBroadband Access0.10.10.10.10.10.10.10.10.10.00.00.00.20.20.20.0IP/Ethernet

WindstreamCost Center excluding M&IBuilding AccessBuilding Access0.40.40.40.40.40.40.40.40.40.40.40.41.11.21.21.3IP/Ethernet

WindstreamCost Center excluding M&IENNI AccessENNI Access1.61.71.71.71.71.60.30.30.30.30.30.25.05.00.90.7IP/Ethernet-0.085

Network Access32.533.233.032.431.931.431.030.79330.35929.48128.828.498.695.792.286.7- 0Check0.02

2q19 earnings presentation · 2019-08-08 · magic quadrant for unified communications as a...

Documents