Time Warner Cable 2006 Annual Report Download - page 4

Making Investments to Drive
Growth in 2008 and Beyond
Today, we are making focused investments
in our businesses to lay the groundwork for
growth in 2008 and beyond.
The first of these is commercial phone, which
represents an important complement to our
existing commercial high-speed data business.
In 2006, our commercial video and data
business generated approximately $500 million
in revenues. We estimate that commercial
customers spend $12 billion to $15 billion
annually for telephone service in our footprint.
In 2007, we plan to launch commercial phone
for small- and medium-sized businesses in
most of our legacy footprint.
Our second initiative is advanced advertising.
On the Internet, advertisers are able to target
specific audiences; they can measure viewer-
ship and results; they can offer more depth
through interactivity; and they can place
advertising on a real-time basis through an
auction process. We believe that we can
use our technology to bring these features
to television. We are actively working with
others to make this idea a reality over the
next several years.
The third is wireless. As with all of our
efforts, our wireless strategy starts with our
customers’ needs. We know that there is
interest in bringing an element of mobility
to our video, high-speed data and voice
products. Our approach is to learn more
specifically what consumers want—and are
willing to pay for—before we commit more
significant resources to this opportunity.
Accordingly, we are offering our first set of
products in conjunction with Sprint in several
cities. These products include integrated
voicemail for cell phones and our Digital
Phone, mobile access to Road Runner e-mail
and a TV offering with local and national
content. It is just a beginning, and we plan
to roll it out further this year.
Integrated Into the Communities
We Serve
Ultimately, our success is related to our ability
to meet customers’ needs in hundreds of
thousands of transactions every day. To that
end, we are fortunate to have 43,000
dedicated and hard-working employees,
who live and work in the communities
where we do business.
We’re committed to enhancing the extent to
which our employees reflect the communities
we serve, and we have extended our diversity
efforts to our relationships with diverse
vendors, our philanthropic endeavors and
the content we provide. Our emphasis on
employee training is in step with our com-
pany’s efforts in education, the keystone of
our community and philanthropic activities.
Two signature initiatives, Time To Read, a
literacy / mentoring program, and our National
Teacher Awards, now in its 18th year, are
modeled and expanded upon in every Time
Warner Cable operation. And increasingly,
we’re working to minimize our impact on the
environment through a variety of efforts,
including the vehicles we buy and the way we
recycle components from used equipment.
Closing
In closing, we take pride in strong execution,
and we’re enthusiastic about our prospects.
As a newly public company, we are fortunate
to have an outstanding board of directors
with strong independent representation to
guide and shape our company. On their
behalf, I would like to thank you for your
continuing support.
Glenn A. Britt
President & Chief Executive Officer
April 2007