Cincinnati Bell 2012 Annual Report Download - page 100

Item 2. Properties
As of December 31, 2012, we owned or maintained properties in Ohio, Texas, Kentucky, Indiana, Illinois,
Arizona, England and Singapore. Principal office locations were in Cincinnati, Ohio and Carrollton, Texas.
Our property comprises telephone plant and equipment in its local telephone franchise area (i.e., Greater
Cincinnati), the infrastructure associated with its wireless business in the Greater Cincinnati and Dayton, Ohio
operating areas, and data center facilities. Each of the Company’s subsidiaries maintains some investment in
furniture and office equipment, computer equipment and associated operating system software, application
system software, leasehold improvements, and other assets.
With regard to its local telephone operations, the Company owns substantially all of the central office
switching stations and the land upon which they are situated. Some business and administrative offices are
located in rented facilities, some of which are recorded as capital leases. The Company’s out-of-territory
Wireline network assets include a fiber network plant, internet protocol and circuit switches and integrated access
terminal equipment.
In its wireless operations, CBW primarily leases the locations that house its switching and messaging
equipment. CBW leases substantially all of its tower sites, primarily from tower companies and other wireless
carriers. CBW’s tower leases are typically either for a fixed 20-year term ending in December 2029 or renewable
on a long-term basis at CBW’s option, both with predetermined rate escalations. In addition, CBW leases ten
company-run retail locations.
As of December 31, 2012, CyrusOne, our former Data Center Colocation segment, owned and leased the
following properties:
Market Owned Leased
Data Center
Colocation
(sq. ft. in thousands)
Cincinnati .................................. 4 3 412
Houston ................................... 2 1 189
Dallas ..................................... 1 4 171
Austin ..................................... — 2 57
San Antonio ................................ 1 — 36
Phoenix .................................... 1 — 36
Other ...................................... 1 4 31
10 14 932
As of December 31, 2012, CyrusOne also owned 140 acres of land for future expansion of its data centers
located in Phoenix, Cincinnati and Houston. Data centers provide power, environmental controls, high-speed and
high-bandwidth point-to-point optical network connections, and 24-hour monitoring of the customer’s computer
equipment. The lease of certain data center facilities represents the “lease of the building shell,” and the capital
expenditures required to transform the leased building shells into top-tier data centers represent amounts that are
several times the value of the leased building shells. For additional information about the Company’s properties,
see Note 5 to the Consolidated Financial Statements.
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Form 10-K Part I Cincinnati Bell Inc.