NC: Frontier Communications Expansion to Create 200 Jobs in Durham | Trade and Industry Development

NC: Frontier Communications Expansion to Create 200 Jobs in Durham

Nov 18, 2015

Governor Pat McCrory, North Carolina Commerce Secretary John E. Skvarla, III and the Economic Development Partnership of North Carolina (EDPNC) announced Frontier Communications Corporation has committed to adding 200 jobs over the coming five years as part of a $4.3 million expansion in the City of Durham.

“Frontier Communications is the nation’s 4th largest telecom provider, and we’re glad North Carolina will continue to be a big part of its growth,” said Governor McCrory. “Frontier is an important economic development ally for our state, bringing telecommunications technologies that empower our communities and companies to compete globally.”

Since Governor McCrory took office in January of 2013, North Carolina has witnessed the net creation of nearly 240,000 private sectors jobs.

Frontier Communications provides communications services and solutions for small businesses, home offices, and companies across 28 states. Its offerings include broadband, video, voice wireless Internet access, data security solutions and bundled communications. Frontier serves 15 counties in the state, including several of North Carolina’s western communities. Durham is a key market for Frontier and was selected in October 2014 as the first launch site of the company’s gigabit fiber services. The company’s expanded facilities in Durham will provide advanced technical support to Frontier customers nationwide among other services.

Founded in 1935 and headquartered in Norwalk, Connecticut, Frontier Communications reported $4.16 billion in revenue for the first nine months of 2015. Its 18,600 employees are 100 percent U.S.-based and include approximately 250 employees in North Carolina. 

“This is how we like to grow jobs with the expansion of existing employers,” said Secretary Skvarla. “Frontier Communications will nearly double its number of employees in Durham over the next several years.” 

Once complete, Frontier Communications’ expansion will add nearly $9.4 million in annual payroll to the state. Newly created positions will include billing and support specialists, programming and networking design professionals, field installation technicians and more.

“Frontier is excited to expand its presence in Durham,” said Dennis Bloss, Vice President and General Manager of Frontier. “The public and private sectors benefit from state and local investment. We look forward to stimulating job creation and economic activity. Today’s news is good news for all.”

Under the terms of the company’s Job Development Investment Grant (JDIG), Frontier Communications is eligible to receive up to $880,500 in total reimbursements. Payments will occur in annual installments pending verification by NC Commerce and NC Revenue that the company has met incremental job creation and investment targets. JDIGs reimburse new and expanding companies a portion of the newly created tax-base stemming from the operations with the goal of increasing the overall tax benefit to the State of North Carolina. This JDIG is contingent upon the City of Durham offering local incentives.

By law, JDIG projects must result in a net revenue inflow to the state treasury over the life of the award. For projects in Tier 3 counties such as Durham County, 25 percent of the award amount is directed to the state’s Industrial Development Fund – Utility Account to help finance economic infrastructure in less populated Tier 1 and Tier 2 counties. Frontier’s expansion could provide as much as $293,500 in new funds for the Utility Account. More information on county tier designations is available at http://www.nccommerce.com/Portals/0/Incentives/CountyTier/2015%20Development%20Tier%20Rankings.pdf  

N.C. Commerce and the EDPNC partnered with the North Carolina General Assembly, the North Carolina Community College System, the City of Durham and the Greater Durham Chamber of Commerce to make Frontier Communications’ expansion possible.