Cincinnati Bell 2006 Annual Report Download - page 6
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$148
$167
$152
200620052004
Free Cash Flow
(in millions)
Strong Financial Condition Resulting in Strong, Stable
Free Cash Flow
In 2006, we delivered $148 million dollars of free cash
flow, which was essentially flat to 2005. Early in the
year, we used a portion of our free cash to complete the
purchase of the 20% interest in Cincinnati Bell Wireless
that was owned by Cingular. The remainder of the free
cash flow was used to reduce our net debt, leaving us
much more secure today and solidifying our financial
position in the future.
$2,007
$2,112 $2,069
200620052004
Net Debt
(in millions)
Investing for the Future
Cincinnati Bell’s 2006 performance positions us for
solid momentum and reinvestment in our business in
2007. We are extremely excited about the growth
opportunities available in our Technology Solutions
segment with increased data center space. We expect to
have the benefit of approximately twenty percent rate of
return on these centers as well as solidify relationships
with large business clients. We will see major
construction at two of our five data centers to meet
current customer demand. When this construction is
complete, we will have one Tier 2 data center and four
Tier 3 data centers for a total of 177,000 square feet.
Highly scalable fiber optic networks will connect the
Tier 3 data centers. This architecture allows us to
bundle traditional local data products with next
generation data monitoring, storage and recovery
products for continued growth in recurring services. By
bundling the enterprise space, we will not only grow
data center and managed services, but defend our
traditional wireline services as well as grow our wireless
business with these customers.
Furthermore, our investment in the 3G wireless
network will enable us to support the latest
technological advances in our industry such as
streaming video, as well as manufacture incremental
voice capacity at costs that will approach a near 50%
reduction in capital per minute of use.
In 2007 we also plan to focus resources and efforts to
attack underserved markets, grow expansion markets,
and leverage wireless and wireline interoperability.
4