Cablevision 2013 Annual Report Download - page 17

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Lightpath
Lightpath operates as a CLEC in a highly competitive business telecommunications market and competes
against the very largest telecommunications companies - including ILECs, other CLECs, and long
distance companies. More specifically, Lightpath faces substantial competition from Verizon and AT&T,
which are the dominant providers of local telephone and broadband services in their respective service
areas. ILECs have significant advantages over Lightpath, including greater capital resources, an existing
fully operational local network, and long standing relationships with customers.
While Lightpath competes with the ILECs, it also enters into interconnection agreements with ILECs so
that its customers can make and receive calls to and from customers served by the ILECs and other
telecommunications providers. Federal and state law and regulations require ILECs to enter into such
agreements and provide such facilities and services, at prices subject to regulation. The specific price,
terms and conditions of each agreement, however, depend on the outcome of negotiations between
Lightpath and each ILEC. Agreements are also subject to approval by the state regulatory commissions.
Lightpath has entered into interconnection agreements with Verizon for New York, New Jersey, and
portions of Connecticut, and with AT&T for portions of Connecticut, which have been approved by the
respective state commissions. Lightpath also has entered into interconnection agreements with ILECs in
New York and New Jersey. These agreements, like all interconnection agreements, are for limited terms
and upon expiration are subject to renegotiation, potential arbitration, and approval under the laws in
effect at that time.
Lightpath also faces competition from one or more competitive access providers and other new entrants in
the local telecommunications and data marketplace. In addition to the ILECs and other CLECs, other
potential competitors capable of offering voice or broadband services include electric utilities, long
distance carriers, microwave carriers, wireless system operators (operating both mobile and fixed
networks), VoIP service providers, and private networks built by large end users. A continuing trend
toward business combinations and alliances in the telecommunications industry may create stronger
competition for Lightpath.
Newsday
Newsday operates in a highly competitive market, which may adversely affect advertising and circulation
revenues. Newsday faces significant competition for advertising revenue from a variety of media sources.
Newsday also faces competition from other newspapers that reach a similar audience in the same
geographic area, as well as from magazines, shopping guides, yellow pages, websites, mobile-device
platforms, broadcast and cable television, radio and direct marketing; particularly if those media sources
provide advertising services that could substitute for those provided by Newsday within the same
geographic area. Specialized websites for real estate, automobile and help wanted advertising have
become increasingly competitive with our newspapers and websites for classified advertising and further
development of additional targeted websites is likely.
The newspaper industry generally has experienced significant declines in advertising and circulation
revenue as circulation and readership levels continue to be adversely affected by competition from new
media news formats and less reliance on newspapers by some consumers, particularly younger
consumers, as a source of news and classifieds. Newsday has experienced similar advertising revenue
declines, while its circulation revenue remains stable. A prolonged decline in circulation levels would
also have a material adverse effect on the rate and volume of advertising revenues.