Time Warner Cable 2006 Annual Report Download - page 13

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• eBay on TV — allows TWC’s customers to place bids, track their progress, and raise their bids via set-top
box alerts and their remote controls;
• Football and Baseball Trackers — allow TWC’s customers to set a roster of players for whom they would
like up-to-date statistics and alerts (e.g., such as when they score a touchdown or are injured); and
• Bill paying and subscription upgrades — enable customers to engage in “self-help” for these frequent
interactions with the cable company using their remote control.
High-speed Data Services
TWC offers residential and commercial high-speed data services to nearly 99% of its homes passed as of
December 31, 2006. TWC’s high-speed data services provide customers with a fast, always-on connection to the
Internet. Subscribers pay a monthly flat fee based on the level of service received. Due to their different
characteristics, commercial and bulk subscribers are charged at different rates from residential subscribers.
The following table presents some statistical data regarding TWC’s high-speed data services:
2004 2005 2006
As of December 31,
(in thousands, except
percentages)
Service-ready homes passed
(1)
............................... 15,870 16,227 25,691
Residential high-speed data subscribers ........................ 3,368 4,141 6,644
Residential high-speed data penetration
(2)
...................... 21.2% 25.5% 25.9%
Commercial high-speed data subscribers . . . .................... 151 183 245
(1)
Service-ready homes passed represent the number of high-speed data service-ready single residence homes, apartment and condo-
minium units and commercial establishments passed by TWC’s cable systems without further extending its transmission lines.
(2)
Residential high-speed data penetration represents residential high-speed data subscribers as a percentage of high-speed data service-
ready homes passed.
High-speed data subscribers connect their personal computers or other broadband ready devices to TWC’s
cable systems using a cable modem, which TWC provides at no charge or which subscribers can purchase
themselves if they wish. TWC’s high-speed data service enables subscribers to connect to the Internet at speeds
much greater than traditional dial-up telephone modems. In contrast to dial-up services, subscribers to TWC’s high-
speed data service do not have to log in to their account each time they wish to access the service and can remain
connected without being disconnected because of inactivity.
Road Runner. As of December 31, 2006, TWC offered its Road Runner branded, high-speed data service to
residential subscribers in virtually all of the Legacy Systems and approximately 80% of the Acquired Systems.
TWC was providing the same high-speed data service provided prior to the Transactions in the rest of the Acquired
Systems on a temporary basis. TWC expects to transition these pre-existing high-speed data services to Road
Runner before the end of 2007.
TWC’s Road Runner service provides communication tools and personalized services, including e-mail, PC
security, parental controls, news group, online radio and personal home pages. Electronic messages can be
personalized with photo attachments or video clips. The Road Runner portal provides access to content and media
from local, national and international providers and topic-specific channels including games, news, sports, autos,
kids, music, movie listings, and shopping sites.
TWC offers multiple tiers of Road Runner service, each with different operating characteristics and a different
monthly fee. In recent years, TWC has steadily increased maximum download speeds in response to competitive
factors and TWC anticipates that it will continue to be able to do so for the foreseeable future.
Road Runner was a recipient of the SATMetrics award for highest consumer “likelihood to recommend” in
2006, well ahead of all other cable providers, digital subscriber line (“DSL”) providers, and other Internet service
providers (“ISPs”). In addition to Road Runner, most of TWC’s cable systems provide high-speed access to the
services of certain other on-line providers, including EarthLink.
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