Cincinnati Bell 2009 Annual Report Download - page 99
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2007 primarily due to increased usage by third party users. Data revenue also increased by an additional $5.3
million in 2008 compared to 2007 due to an increase in DSL subscribers of 11,700, bringing total DSL
subscribers to 233,200 at December 31, 2008.
Long distance and VoIP revenue increased $19.0 million in 2008 compared to 2007. The increase was
primarily due to the acquisition of eGIX, which generated revenue of $13.0 million during 2008. The remaining
increase was due to an increase in minutes of use for long distance, VoIP and new broadband services including
private line and MPLS. The Company had 531,600 subscribed long distance access lines as of December 31,
2008 compared to 548,300 as of December 31, 2007. The decrease in subscribers was due to a 6% decline in
residential lines, consistent with the access line loss, partially offset by a 3% increase in business subscribers.
Other revenue decreased $8.7 million from 2007 due to lower revenue on customer premise wiring projects,
$9.5 million of which came from a large one-time business customer project in 2007.
Costs and Expenses
Cost of services and products decreased by $10.7 million in 2008 compared to 2007. The decrease in cost of
services and products was due to $7.5 million in lower benefit costs, mainly lower pension and postretirement
costs from plan changes announced in the third quarter of 2007, a $9.0 million decrease from costs associated
with a large one-time business customer premise wiring project in 2007, and $4.4 million in lower wages
primarily related to the restructuring plan announced in the fourth quarter 2007 and the union agreement signed
in February 2008. These decreases were partially offset by an increase of $5.7 million in network costs to support
the growth in long distance, VoIP, broadband services, and CLEC revenues, and $5.8 million in costs due to the
acquisition of eGIX.
Selling, general and administrative expenses increased $5.0 million in 2008 versus 2007. The increase was
primarily due to the acquisition of eGIX, which had $6.2 million of costs, and an increase in commissions. These
increases were partially offset by lower pension and postretirement costs due to plan changes announced in the
third quarter of 2007.
Restructuring expenses for 2008 and 2007 were primarily related to the restructuring plans announced in the
fourth quarter of 2007 and first quarter of 2008 to reduce costs and increase operational efficiencies.
29
Form 10-K