Cincinnati Bell 2009 Annual Report Download - page 119

Ohio and Kentucky Cable Franchises
Ohio statewide video service authorization legislation was enacted in May 2007. This legislation allows the
Company to apply for one statewide video franchise agreement rather than negotiating individual agreements
with all local entities in Ohio. This legislation holds no build-out requirements for the Company, limits the
franchise fee to the federally authorized maximum of 5% of gross revenues from the Company’s cable operations
and holds PEG requirements to a minimum. In October 2007, CBET applied for statewide video service
authorization, which was granted in December 2007. CBET is now authorized to provide service in our self-
described territory with only 10-day notification to the local government entity and other providers.
Authorizations can be amended to include additional territory upon notification to the state. A franchise
agreement with each local entity is required in Kentucky. The Company initiated discussions with local
jurisdictions in Kentucky in 2008 and has reached agreement with seven local jurisdictions.
Recently Issued Accounting Standards
In June 2009, new accounting guidance under ASC 860, “Transfers and Servicing,” was issued. The
guidance eliminates the concept of a qualifying special-purpose entity, changes the requirements for
derecognizing financial assets, and requires additional disclosures that will provide greater transparency about
transfers of financial assets, including securitization transactions, and an entity’s continuing involvement in and
exposure to the risks related to transferred financial assets. Such guidance is effective for fiscal years beginning
after November 15, 2009. The Company does not expect the impact of this guidance to be material to the
Company’s financial statements.
In September 2009, new accounting guidance under ASC 605 related to revenue arrangements with multiple
deliverables was issued. The guidance addresses the unit of accounting for arrangements involving multiple
deliverables, how arrangement consideration should be allocated to the separate units of accounting and
eliminates the criterion that objective and reliable evidence of fair value of any undelivered items must exist for
the delivered item to be considered a separate unit of accounting. Such guidance is effective for fiscal years
beginning on or after June 15, 2010. Early adoption is permitted. The Company has not yet assessed the impact
of this guidance on the Company’s financial statements.
In September 2009, new accounting guidance under ASC 605 was issued regarding tangible products
containing both software and non-software components that function together to deliver the product’s essential
functionality. Such guidance is effective for fiscal years beginning on or after June 15, 2010. Early adoption is
permitted. The Company has not yet assessed the impact of this guidance on the Company’s financial statements.
Private Securities Litigation Reform Act of 1995 Safe Harbor Cautionary Statement
This Form 10-K contains “forward-looking” statements, as defined in federal securities laws including the
Private Securities Litigation Reform Act of 1995, which are based on Cincinnati Bell Inc.’s current expectations,
estimates and projections. Statements that are not historical facts, including statements about the beliefs,
expectations and future plans and strategies of the Company, are forward-looking statements. These include any
statements regarding:
•future revenue, operating income, profit percentages, income tax refunds, realization of deferred tax
assets, earnings per share or other results of operations;
•the continuation of historical trends;
•the sufficiency of cash balances and cash generated from operating and financing activities for future
liquidity and capital resource needs;
•the effect of legal and regulatory developments; and
•the economy in general or the future of the communications services industries.
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Form 10-K