Time Warner Cable 2014 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2014 Time Warner Cable annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 150

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

restrictions and call transfer. TWC also provides a web-based customer portal, VoiceManager, which allows voice
customers to customize and manage the associated service features.
Trunks. TWC’s trunk service is offered either through a Primary Rate Interface (“PRI”) or a Session Initiation
Protocol (“SIP”) handoff to the customer. TWC’s PRI trunk service, Business Class PRI, offers medium-sized and
enterprise business customers a range of trunk packages with up to 23 simultaneous voice calls on each trunk and a set of
voice usage plans. TWC’s SIP trunk service, Business Class SIP, offers medium-sized and enterprise business customers a
range of trunk packages with up to 200 simultaneous voice calls with a set of voice usage plans. TWC also provides the
VoiceManager customer portal to enable each trunk service customer to customize and manage the associated service
features.
As of December 31, 2014, TWC served 323,000 business voice subscribers.
Managed and Outsourced IT Solutions and Cloud Services
TWC offers its data customers a number of managed and cloud services, including managed network security,
domain name registration, online backup, hosted Microsoft Exchange and SharePoint and web hosting. Furthermore,
through its NaviSite subsidiary, TWC provides a range of cloud solutions, including Infrastructure as a Service (“IaaS”)
and Desktop as a Service (“DaaS”), and customized managed hosting, managed application and messaging solutions
along with other related information technology (“IT”) solutions and professional services for medium-sized and
enterprise customers across a variety of industries.
Other Operations
TWC’s Other Operations segment principally consists of Time Warner Cable Media (“TWC Media”), the advertising
sales arm of TWC, and the Company’s regional sports networks, its local sports, news and lifestyle channels and
SportsNet LA. It also includes other operating revenue and costs, including those derived from the Advance/Newhouse
Partnership and home shopping network-related services. For more information about the Advance/Newhouse
Partnership, see “—TWE-A/N Partnership” below.
TWC Media
TWC Media sells video and online advertising inventory to local, regional and national advertising customers. Under
its cable network programming agreements, TWC is typically entitled to two or three minutes of advertising time per hour
that it can sell to third parties or retain for its own use. TWC also sells the advertising inventory of its owned and operated
local sports, news and lifestyle channels and its Time Warner Cable Central, or TWCC.com, portal, and advertising
inventory on the Company’s regional sports networks that carry Los Angeles Lakers’ basketball games and other sports
programming (Time Warner Cable SportsNet and Time Warner Cable Deportes and, collectively, the “Lakers’ RSNs”)
and on SportsNet LA, a regional sports network launched by American Media Productions, LLC (“American Media
Productions”), that carries Los Angeles Dodgers’ baseball games and other sports programing.
In many locations, TWC has formed advertising “interconnects” or entered into representation agreements with
contiguous cable system operators under which TWC sells advertising on behalf of those operators. This enables TWC to
deliver commercials across wider geographic areas, replicating the reach of the local broadcast stations as much as
possible. TWC also sells advertising inventory on behalf of other video distributors, including, among others, Verizon
Communications Inc.’s (“Verizon”) FiOS, AT&T Inc.’s (“AT&T”) U-verse and Charter, in a number of cities and online
display advertising on behalf of several third parties. In addition, TWC, together with Comcast and Cox Communications,
Inc. (“Cox”), owns National Cable Communications LLC (“National Cable Communications”), which, on behalf of a
number of cable operators, sells advertising time to national and regional advertisers. Through National Cable
Communications, TWC is a party to an agreement to sell certain DIRECTV Group Inc. (“DIRECTV”) and DISH
Network, LLC (“DISH Network”) advertising inventory.
5