Cincinnati Bell 2013 Annual Report Download - page 144

regulation legislation, and authorized pricing flexibility for ILEC basic local exchange service upon a
competitive showing by the ILEC. In December 2010, CBT filed an application with the PUCO under the new
rules to receive pricing flexibility in its four Ohio exchanges that did not have pricing flexibility under alternative
regulation. The application was approved in January 2011. Furthermore, the legislation provided cost savings and
revenue opportunities resulting from revision of the PUCO’s retail rules and service standards that were effective
in January 2011.
CBT entered into its existing alternative regulation plan in Kentucky in July 2006 under terms established
by the Kentucky General Assembly in House Bill No. 337. Under this plan, basic local exchange service prices
were capped in exchange for earnings freedom and pricing flexibility on other retail services. The caps on basic
local exchange service prices expired in July 2011 providing CBT with flexibility to increase rates for basic local
exchange service.
Ohio and Kentucky Cable Franchises
The states of Ohio and Indiana permit statewide video service authorization. The Company is now
authorized by Ohio and Indiana to provide service in our self-described territory with only 10-day notification to
the local government entity and other providers. The authorization can be amended to include additional territory
upon notification to the state. A franchise agreement with each local franchising authority is required in
Kentucky. The Company has reached an agreement with eight franchising authorities in Kentucky.
Recently Issued Accounting Standards
Refer to Note 2 of the consolidated financial statements for further information on recently issued
accounting standards. The adoption of new accounting standards did not have a material impact on the
Company’s financial results for the years ended December 31, 2013, 2012 or 2011.
Private Securities Litigation Reform Act of 1995 Safe Harbor Cautionary Statement
This Form 10-K contains “forward-looking” statements, as defined in federal securities laws including the
Private Securities Litigation Reform Act of 1995, which are based on our current expectations, estimates,
forecasts and projections. Statements that are not historical facts, including statements about the beliefs,
expectations and future plans and strategies of the Company, are forward-looking statements. Actual results may
differ materially from those expressed in any forward-looking statements. The following important factors,
among other things, could cause or contribute to actual results being materially and adversely different from
those described or implied by such forward-looking statements including, but not limited to:
•the Company’s substantial debt could limit its ability to fund operations, raise additional capital, and have
a material adverse effect on its ability to fulfill its obligations and on its businesses and prospects
generally;
•the Corporate Credit Agreement and other indebtedness impose significant restrictions on the Company;
•the Company depends on its Corporate Credit Agreement and Receivables Facility to provide for its short-
term financing requirements in excess of amounts generated by operations and the availability of those
funds may be reduced or limited;
•the servicing of the Company’s indebtedness requires a significant amount of cash, and its ability to
generate cash depends on many factors beyond its control;
•the Company depends on the receipt of dividends or other intercompany transfers from its subsidiaries and
investments;
•the Company’s access lines, which generate a significant portion of its cash flows and profits, are
decreasing in number;
•the Company may be unable to grow our revenue and cash flows despite the initiatives we have
implemented;
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Form 10-K Part II Cincinnati Bell Inc.