Cincinnati Bell 2012 Annual Report Download - page 78

The Company has expanded its voice and data services beyond its ILEC territory, particularly in Dayton and
Mason, Ohio, through the operations of Cincinnati Bell Extended Territories LLC (“CBET”), a competitive local
exchange carrier (“CLEC”) and subsidiary of CBT. CBET provides voice and data services on either its own
network or through purchasing unbundled network elements (“UNE-L” or “loops”) from various incumbent local
carriers. The ILEC and CLEC territories are linked through a Synchronous Optical Fiber Network (“SONET”),
which provides route diversity between the two territories via two separate paths.
Voice services
The Wireline segment provides voice services over a digital circuit switch-based network to end users via
access lines. In recent years, the Company’s voice access lines have decreased as its customers have increasingly
employed wireless technologies in lieu of wireline voice services (“wireless substitution”), have migrated to
competitors, including cable companies that offer VoIP solutions, or have been disconnected due to credit
problems. The Wireline segment had 573,900 voice access lines in service on December 31, 2012, which is an
8% and 15% reduction in comparison to 621,300 and 674,100 access lines in service at December 31, 2011 and
2010, respectively.
In order to minimize access line losses and to provide greater value to its customers, the Company provides
bundled offerings that enable customers to bundle two or more of the Company’s services, such as high-speed
internet and a phone line, at a lower price than if the services were purchased individually. The Company has
approximately 389,000 residential customers in Greater Cincinnati and Dayton, Ohio, 53% of which bundle two
or more Company products and 18% of which bundle three or more Company products.
The Wireline segment has been able to partially offset the effect of access line losses on revenue in recent
years by:
(1) increasing high-speed internet penetration, particularly with its Fioptics service;
(2) increasing entertainment revenue with more Fioptics fiber-to-the-home and internet protocol television
(“IPTV”) subscribers; and
(3) increasing the sale of audio conferencing, VoIP services and other fiber-based products to its enterprise-
class customers.
Data
Data revenue consists of data transport, DSL high-speed internet access, Fioptics high-speed internet access,
and LAN interconnection services. The Company’s wireline network includes the use of fiber optic cable, with
SONET rings linking Cincinnati’s downtown with other area business centers. These SONET rings offer
increased reliability and redundancy to CBT’s major business customers. CBT has an extensive business-oriented
data network, including connection to approximately 3,600 buildings and towers throughout Greater Cincinnati,
that offers high-speed and high capacity data transmission services over an interlaced ATM — Gig-E backbone
network.
The Company had 202,600, 218,000, and 228,900 DSL high-speed internet subscribers at December 31,
2012, 2011, and 2010, respectively. In addition, the Company also had 56,800, 39,300, and 27,200 Fioptics high-
speed internet customers at December 31, 2012, 2011, and 2010, respectively. The Company was able to provide
DSL high-speed internet service to 96% of its ILEC territory and its fiber-based Fioptics high-speed internet to
approximately 24% of its ILEC territory as of the end of 2012.
Long distance and VoIP services
The Company provides long distance and VoIP services primarily through its Cincinnati Bell Any Distance
Inc. (“CBAD”) and eVolve Business Solutions LLC (“eVolve”) subsidiaries. These entities provide long distance
and audio conferencing services to business and residential customers in the Greater Cincinnati and Dayton, Ohio
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Form 10-K Part I Cincinnati Bell Inc.