Cincinnati Bell 2006 Annual Report Download - page 113

PART I
Item 1. Business
General
Cincinnati Bell Inc. (the “Company”) is a full-service local provider of data and voice communications
services and equipment and a regional provider of wireless and long distance communications services. The
Company provides telecommunications service primarily on its owned local and wireless networks with a well-
regarded brand name and reputation for service. The Company has five reportable business segments: Local,
Wireless, Technology Solutions (formerly referred to as Hardware and Managed Services), Other, and
Broadband. The Broadband segment no longer has any substantive, on-going operations.
The Company’s primary businesses consist of the Local and Wireless segments, which predominately
provide voice and data telecommunications services, and the Technology Solutions segment, which provides
business technology solutions such as data center and managed services, telecommunications equipment and
information technology hardware and professional services. For the year ended December 31, 2006, these three
segments generated 97% of the Company’s 2006 consolidated revenue and operating income. In its Other
segment, the Company operates Cincinnati Bell Any Distance Inc. (“CBAD”), which provides long distance
services, Cincinnati Bell Complete Protection Inc. (“CBCP”), which provides security monitoring services and
related surveillance hardware, the Company’s public payphone business (“Public”), and Cincinnati Bell
Entertainment (“CBE”), which does not currently have operations, but intends to eventually offer television
programming over the internet as an alternative to cable or satellite television service.
Although the Company operates in distinct business segments, it offers each of its operating segments’
services through common distribution channels. These channels include the Company’s direct sales force, 21
Company-run retail locations, independent agents, and the Company’s service centers. For its consumers and
small business customers, the Company markets the services of its operating segments in a combined package of
services. The most comprehensive package of services that the Company offers is the Custom ConnectionsSM
“Super Bundle,” comprised of a customized package of local, long distance, wireless, and digital subscriber line
(“DSL”) services on a single monthly bill and at a price that is discounted compared to the purchase price of each
service on an individual basis. As of December 31, 2006, the Company had approximately 173,000 Super Bundle
subscribers, which represents 32% of the Company’s primary in-territory consumer access lines.
The Company is an Ohio corporation, incorporated under the laws of Ohio in 1983. Its principal executive
offices are at 221 East Fourth Street, Cincinnati, Ohio 45202 (telephone number [phone] and website
address http://www.cincinnatibell.com). As soon as practicable after they have been electronically filed, the
Company makes available its reports on Form 10-K, 10-Q, and 8-K (as well as all amendments to these reports),
free of charge, on its website at the Investor Relations section.
The Company files annual, quarterly and current reports, proxy statements and other information with the
Securities and Exchange Commission (the “SEC”) under the Exchange Act. These reports and other information
filed by the Company may be read and copied at the Public Reference Room of the SEC, 100 F Street N.E.,
Washington, D.C. 20549. Information may be obtained about the Public Reference Room by calling the SEC at
1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy statements, and other
information about issuers, like the Company, which file electronically with the SEC. The address of that site is
http://www.sec.gov.
Local
The Local segment provides local voice, data, and other telephone services. Voice services include local
service, switched access, information services, and value-added services, such as caller identification, voicemail,
call waiting, and call return. Data services include dedicated network access, Gigabit Ethernet (“Gig-E”) and
Asynchronous Transfer Mode (“ATM”) based data transport, and DSL and dial-up Internet access. Other
services consist of inside wire installation for business enterprises and billing, clearinghouse and other ancillary
services primarily for inter-exchange (long distance) carriers. The Local segment provides these services through
the operations of Cincinnati Bell Telephone LLC (“CBT”), an Incumbent Local Exchange Carrier (“ILEC”)
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