Cincinnati Bell 2006 Annual Report Download - page 5
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528
470 474 481 496
2005200420032002 2006
Wireless Subscribers
(in thousands)
Solid Progress in a Challenging Environment
The telecommunications industry continues rapid
evolution, mandating rapid changes and challenges.
With challenge, comes opportunity. Strong promotions
and bundling success led to net additions of 36,000
DSL subscribers, or a 22% increase in subscribers from
2005. This growing DSL subscriber base helps to offset
the impact of lower local voice revenue – a challenge
faced by everyone in this industry. Over one third of
our in-territory consumer primary lines subscribe to
DSL.
In a highly competitive environment, we also
experienced our best DSL churn in company history. A
churn rate of 1.9% demonstrates the dedication and
commitment of our employees to offering our
customers a superior price/value relationship. In
addition, we launched our out-of-territory DSL product
in May and quickly realized a penetration of primary
consumer lines of 15% by the end of 2006.
75
100
131
162
2005200420032002 2006
DSL Subscribers
(in thousands)
198
We, as well as all other companies in this industry, are
experiencing continued access line loss in our core
wireline business. We believe there are primarily three
reasons we are experiencing in-territory consumer access
line erosion. Wireless substitution continues to be the
primary driver and to a lesser extent, consumer
involuntary disconnects and competitive activity. Overall
growth in expansion markets and stability in business
access lines partially offset this decline. Our ability to
diversify our service revenue and customer base also
allows us to mitigate our ongoing risk. In 2006, more
than half of our total revenue came from business
customers. We continued to maintain business access
lines and actively grew relationships with key enterprise
customers. In addition, 64% of revenue came from other
areas besides traditional wireline voice. In other words, by
achieving growth in wireless, data, and Technology
Solutions products, we continue to lessen the impact of
lower local voice revenue.
3