Cincinnati Bell 2005 Annual Report Download - page 53

Part I
Item 1. Business
General
Cincinnati Bell Inc. (the “Company”) is a full-service local provider of data and voice communications
services and equipment and a regional provider of wireless and long distance communications services. The
Company provides telecommunications service on its owned local and wireless networks with a well-regarded
brand name and reputation for service. The Company has five reportable business segments: Local, Wireless,
Hardware and Managed Services, Other, and Broadband. The Broadband segment no longer has any substantive,
on-going operations.
The Company’s primary businesses consist of the Local and Wireless segments, which predominately
provide voice and data telecommunications services. For the year ended December 31, 2005, these two segments
generated 82% of the Company’s 2005 consolidated revenue and 87% of the Company’s 2005 consolidated
operating income. The Hardware and Managed Services (“HMS”) segment provides information technology
consulting and data center collocation services. The HMS segment also sells equipment, typically located on the
customer’s premises, through which the Company provides its telecommunications and managed services. In its
Other segment, the Company operates Cincinnati Bell Any Distance Inc. (“CBAD”), which provides long
distance services, Cincinnati Bell Complete Protection Inc. (“CBCP”), which provides security monitoring
services and related surveillance hardware, the Company’s public payphone business (“Public”), and Cincinnati
Bell Entertainment (“CBE”), which intends to offer in the future television programming over the internet as an
alternative to cable or satellite television service.
In 2003, the Company sold substantially all of the assets of its broadband business. These assets were held
by the Company’s wholly-owned subsidiary, BRCOM Inc. (f/k/a Broadwing Communications Inc.). Refer to
Note 16 to the Consolidated Financial Statements for a detailed discussion of the sale.
In addition to the sale of substantially all of the broadband assets, on June 13, 2003, the Company’s
subsidiaries entered into agreements with the buyer of the broadband assets whereby the Company will continue
to market Broadwing Communications LLC’s (“Broadwing”) (f/k/a C III Communications Operations LLC)
broadband products to business customers and purchase capacity on Broadwing’s national network in order to
sell long distance services, under the CBAD brand, to residential and business customers in the Greater
Cincinnati area market.
Although the Company operates in distinct business segments, it offers each of its operating segments’
services through common distribution channels. These channels include the Company’s direct sales force, 20
Company-run retail locations, independent agents, and the Company’s service centers. For its consumers and
small business customers, the Company markets the services of its operating segments in a combined package of
services. The most comprehensive package of services that the Company offers is the Custom ConnectionsSM
“Super Bundle,” comprised of a customized package of local, long distance, wireless, and digital subscriber line
(“DSL”) services on a single monthly bill and at a price that is discounted compared to the purchase price of each
service on an individual basis. As of December 31, 2005, the Company had approximately 150,000 subscribers in
this comprehensive bundling package, which represents 16% of the Company’s primary consumer and business
access lines.
The Company is an Ohio corporation, incorporated under the laws of Ohio in 1983. Its principal executive
offices are at 201 East Fourth Street, Cincinnati, Ohio 45202 (telephone number [phone] and website
address http://www.cincinnatibell.com). The Company makes available on its website at the investor relations tab
(http://investor.cincinnatibell.com) its reports on Form 10-K, 10-Q, and 8-K (as well as all amendments to these
reports), free of charge, as soon as practicable after they have been electronically filed.
The Company files annual, quarterly and special reports, proxy statements and other information with the
Securities and Exchange Commission (the “SEC”) under the Exchange Act. These reports and other information
filed by the Company may be read and copied at the Public Reference Room of the SEC, 100 F Street N.E.,
Washington, D.C. 20549. Information may be obtained about the Public Reference Room by calling the SEC at
1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy statements, and other
information about issuers, like the Company, which file electronically with the SEC. The address of that site is
http://www.sec.gov.
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