Cincinnati Bell 2005 Annual Report Download - page 57

residential and business customers in the Company’s operating area, while Public provides public payphone
services principally in the Company’s ILEC operating area.
The Other segment produced revenue of $77.7 million, $78.6 million, and $81.1 million in 2005, 2004, and
2003, respectively, constituting approximately 6%, 7%, and 5% of consolidated revenue in 2005, 2004, and
2003, respectively. The Other segment produced operating income of $26.6 million, $18.0 million, and
$6.5 million in 2005, 2004, and 2003, respectively.
Cincinnati Bell Any Distance
CBAD provides long distance services to businesses and residential customers in the Greater Cincinnati and
Dayton, Ohio areas. At December 31, 2005, CBAD had approximately 564,000 subscribers, 413,000 residential
and 151,000 business, compared to 562,000 and 539,000 long distance subscribers at December 31, 2004 and
2003, respectively. For Local segment access lines for which a long distance carrier is chosen, CBAD’s market
share, as measured by the number of CBT lines for which a long distance carrier was selected, within the Greater
Cincinnati area increased in 2005, with residential and business market share growing to approximately 80% and
52%, respectively, from 76% and 48%, respectively, at the end of 2004. In 2005, CBAD produced $70.2 million
in revenue for the Other segment, representing approximately 6% of consolidated revenue, compared to
$64.1 million or 5% of consolidated revenue in 2004, and $64.5 million or 4% of consolidated revenue in 2003.
Cincinnati Bell Complete Protection Inc.
CBCP provides surveillance hardware and monitoring services to residential and business customers in the
Greater Cincinnati and Dayton, Ohio areas. At December 31, 2005 and 2004, CBCP had approximately 7,000
monitoring subscribers in comparison to 6,000 monitoring subscribers at December 31, 2003. CBCP produced
$2.9 million, $3.9 million, and $3.7 million in revenue in 2005, 2004, and 2003, respectively, for the Other
segment. At the end of 2004, CBCP decided to focus its operations on providing monitoring services in which it
could leverage operating synergies with the Company’s local operation. At that time, CBCP discontinued sales of
surveillance equipment to business customers who do not also have an on-going monitoring service relationship.
These sales comprised approximately $2 million of CBCP’s 2004 revenue; however, discontinuing these sales
did not reduce the Other segment’s 2005 profitability.
Payphone Business
In the fourth quarter of 2004, the Company sold its payphone assets located at correctional institutions and
those outside of the Company’s operating area for $1.4 million. Prior to the sale, Public provided public
payphone services to customers in a seven state regional area. Services are now provided in a three state regional
area – Ohio, Kentucky, and Indiana. Public had approximately 3,700, 4,600, and 8,100 stations in service as of
December 31, 2005, 2004, and 2003, respectively, and generated approximately $4.5 million, $10.6 million, and
$12.8 million in revenue in 2005, 2004, and 2003, respectively, or less than 1% of consolidated revenue in each
year. The revenue decrease is a result of fewer stations in service and reduced calls per line caused by continued
penetration of wireless communications and a targeted reduction in unprofitable lines. The out-of-territory assets
sold contributed approximately $2.6 million to the Other segment’s total revenue in 2004 with only marginal
contribution to the segment’s operating income.
Cincinnati Bell Entertainment
The Company created Cincinnati Bell Entertainment in 2005, which intends to offer in the future television
programming over the internet as an alternative to cable or satellite television service. The Company is reviewing
the rapidly evolving technologies involved with the internet protocol television (“IPTV”) product, and, while the
Company intends to provide this service to the customers in its operating areas, it does not expect significant
revenues to be associated with this product in 2006.
Broadband
The Broadband segment no longer has any substantive, on-going operations. On February 22, 2003, certain
of the Company’s subsidiaries entered into a definitive agreement to sell substantially all of the operating assets
of the Broadband segment for up to $129 million in cash and the assumption of certain long-term operating
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