Time Warner Cable 2007 Annual Report Download - page 12

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2007 2006 2005
December 31,
(in thousands)
Double play
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,703 4,647 3,099
Triple play
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,363 1,523 760
(1)
TWC customers who subscribe to two of TWC’s primary services (video, high-speed data and voice).
(2)
TWC customers who subscribe to all three of TWC’s primary services (video, high-speed data and voice).
Cross-platform Features
In support of its bundled services strategy, TWC is developing features that operate across two or more of its
services. For example, TWC has begun to provide digital video subscribers who both use a TWC-provided set-top
box and subscribe to Digital Phone, at no extra charge, a Caller ID on TV feature that displays incoming call
information on the customer’s television set. TWC has introduced a feature called “PhotoShowTV” in two of its
divisions that gives digital video subscribers who both use a TWC-provided set-top box and subscribe to TWC’s
Road Runner high-speed data service the ability to create and share their personal photo shows and videos with
other TWC digital video subscribers using its VOD technology. TWC expects to expand the roll out of this service
in 2008. TWC is also developing other cross-platform features, such as remote DVR management, which would
allow customers who subscribe to TWC’s DVR service to use the Internet to program their DVRs, and a residential
phone web portal, which would allow Digital Phone subscribers to use the Internet to modify Digital Phone features,
make payments and listen to voicemail, which it expects to launch during 2008.
Commercial Services
TWC has provided video and high-speed data services to businesses for over a decade and, in 2007, it
introduced in the majority of its systems a commercial Digital Phone service, Business Class Phone, geared to
small- and medium-sized businesses. The introduction of Business Class Phone enables TWC to offer its
commercial customers a bundle of video, high-speed data and voice services and to compete against bundled
services from its competitors.
Video Services
TWC offers business customers a full range of video programming tiers marketed under the “Time Warner
Cable Business Class” brand. Packages are designed to meet the demands of a business environment by offering a
wide variety of video services that enable businesses to entertain customers or stay abreast of news, weather and
financial information.
High-speed Data Services
TWC offers business 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. Business subscribers pay a flat monthly fee based on the level of
service received. Due to their different characteristics, commercial subscribers are charged at different rates than
residential subscribers. As of December 31, 2007, TWC had 280,000 commercial high-speed data subscribers.
In addition, TWC provides its high-speed data services to other cable operators for a fee, including Advance/
Newhouse Communications, who in turn provide high-speed data services to their customers.
Voice Services
In addition to TWC’s existing commercial video and high-speed data businesses, TWC recently introduced
Business Class Phone, a business-grade phone service geared to small- and medium-sized businesses. TWC
launched Business Class Phone in the majority of its systems during 2007 and expects to complete the roll-out of
Business Class Phone in the remainder of its systems during 2008.
Commercial Networking and Transport Services
TWC provides dedicated transmission capacity on its network to customers that desire high-bandwidth
connections between locations. TWC also offers point-to-point circuits to wireless telephone providers and to other
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