Time Warner Cable 2006 Annual Report Download - page 14

Time Warner Cable Business Class. TWC offers commercial customers a variety of high-speed data services,
including Internet access, website hosting and managed security. These services are offered to a broad range of
businesses and are marketed under the “Time Warner Cable Business Class” brand. TWC expects that small to
medium-sized businesses will increasingly find the need to purchase high-speed data services and intends to pursue
opportunities in this area.
In addition to the residential subscribers and commercial accounts serviced through TWC’s cable systems,
TWC provides its Road Runner high-speed data service to third parties for a fee.
Voice Services
Digital Phone. Digital Phone is the newest of TWC’s core services, having been launched broadly across the
Legacy Systems in 2004. Most of TWC’s customers receive a Digital Phone package that provides unlimited local,
in-state and U.S., Canada and Puerto Rico long-distance calling and a number of calling features for a fixed monthly
fee. During 2006, TWC introduced a lower priced unlimited in-state only calling plan to serve those of its customers
that do not use long-distance services extensively, as well as second line service. TWC expects to introduce
additional calling plans in the future. TWC’s Digital Phone plans include, among others, the following calling
features:
• Call Waiting;
• Caller ID;
• Voicemail;
• Call Forwarding;
• Speed Dial;
• Anonymous Call Reject;
• International Direct Dial service;
• 3-way calling;
• Enhanced 911 Service, which allows TWC’s customers to contact local emergency services personnel by
dialing 911. With Enhanced 911 service, the customer’s address and phone number will automatically
display on the emergency dispatcher’s screen; and
• Customer Service (611).
As of December 31, 2006, Digital Phone had been launched in all of the Legacy Systems and was available to
nearly 94% of the homes passed in those systems. At that time, TWC had approximately 1.9 million Digital Phone
customers and penetration of voice service to serviceable homes was approximately 11%. Since no comparable
IP-based telephony service was available in the Acquired Systems at the time of acquisition, the continued
introduction of Digital Phone in the Acquired Systems, separately and as part of a bundle, is a high priority. As of
December 31, 2006, Digital Phone was available in some of the Acquired Systems on a limited basis. TWC expects
to roll out Digital Phone across the Acquired Systems during 2007.
As an adjunct to TWC’s existing commercial high-speed data business, TWC intends to introduce a
commercial voice service to small- to medium-sized businesses in most of the Legacy Systems during 2007.
Digital Phone is delivered over the same system facilities TWC uses to provide video and high-speed data
services. TWC provides customers with a voice-enabled cable modem that digitizes voice signals and routes them
as data packets, using IP technology, over its own managed broadband cable systems. Calls to destinations outside
of TWC’s cable systems are routed to the traditional public switched telephone network. Unlike Internet phone
providers, such as Vonage and Lingo, which utilize the Internet to transport telephone calls, TWC’s Digital Phone
service uses only TWC’s own managed network and the public switched telephone network to route calls. TWC
believes its managed approach to delivery of voice services allows it to better monitor and maintain call and service
quality.
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