TIME WARNER CABLE INC.

TIME WARNER CABLE INC.

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Company Overview
Time Warner Cable Inc., headquartered in Stamford, Connecticut, is the second-largest cable operator in the United States and an industry leader in developing and launching innovative video, data and voice services. The company is primarily engaged in the development and launching of video, high-speed data and voice services. It delivers its services to customers over technologically-advanced, well-clustered cable systems that pass approximately 26 million homes.
Time Warner Cable was formed in 1989 through the merger of Time Inc.’s cable television company, American Television and Communications Corp., and Warner Cable, a division of Warner Communications. It also includes the remnants of the defunct QUBE interactive TV service. In 1995, the company launched the Southern Tier On-Line Community, a cable modem service now known as Road Runner.
The company was the first or among the first cable operators to offer high speed data service, IP-based telephony service and a range of advanced digital video services, such as VOD, high definition television and set-top boxes equipped with DVRs. It offers products to its customers including High Definition Television (HDTV), Digital Video Recorders (DVRs), home networking, Digital Phone, Start Over, Quick Clips, PhotoShow TV on Demand, Active Advertising and more.
The company’s service passes more than 26 million U.S. homes, and serves approximately 13.5 million basic video customers. It serves customers in the following 33 states: Alabama, Arizona, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Maine, Michigan, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Virginia, Washington, Wisconsin, West Virginia and Wyoming.
Business Summary
Time Warner Cable Inc. (TWC) is a cable operator in the United States, with systems located mainly in five geographic areas: New York State (including New York City), the Carolinas, Ohio, southern California (including Los Angeles) and Texas. TWC offers video, high-speed data and voice services over its broadband cable systems to residential and commercial customers. In addition, TWC sells advertising to a variety of national, regional and local advertising customers. On March 12, 2009, TWC completed its separation from Time Warner Inc. (Time Warner).
Description and history
Time Warner Cable Inc. (TWC), incorporated on March 21, 2003, is a cable operator in the United States, with systems located mainly in five geographic areas: New York State (including New York City), the Carolinas, Ohio, southern California (including Los Angeles) and Texas. TWC offers video, high-speed data and voice services over its broadband cable systems to residential and commercial customers. In addition, TWC sells advertising to a variety of national, regional and local advertising customers. On March 12, 2009, TWC completed its separation from Time Warner Inc. (Time Warner).

Residential Services

TWC offers a range of residential video services, including advanced services such as On-Demand, high-definition (HD) and digital video recorder (DVR) services. It offers three main levels or tiers of video programming: Basic Service Tier (BST), Expanded Basic Service Tier (or Cable Programming Service Tier) (CPST) and Digital Basic Service Tier (DBT). BST generally includes broadcast television signals, satellite-delivered broadcast networks and superstations, local origination channels, a few specialty networks, such as C-SPAN and QVC, and public access, educational and government channels.

CPST enables BST subscribers to add to their service national, regional and local cable news, entertainment and other networks, such as Cable News Network (CNN), USA Network (USA) and Entertainment and Sports Programming Network (ESPN). In certain areas, BST and CPST also include local programming devoted to the communities TWC serves, including around-the-clock local news channels in a number of cities. DBT enables subscribers who receive digital video signals (digital video subscribers) to receive additional cable networks. The subscribers to any tier of video programming can purchase genre-based programming tiers, such as movies, sports and Spanish language tiers, and premium services, such as Home Box Office (HBO) and Showtime.

On-Demand services are generally available to digital video subscribers. Available On-Demand services include a selection of featured movies and special events, for which separate per-use fees are generally charged, and free access to selected movies, programming from broadcast stations and cable networks, music videos, local programming and other content. DVR service enables customers, among other things, to pause and/or rewind live television programs and record programs on the hard drive built into the set-top box. Start Over allows digital video subscribers using a TWC-provided set-top box to restart select in progress programs directly from the relevant channel, without the ability to fast-forward through commercials.

TWC offered residential high-speed data services to nearly all of its homes. It provides customers with always-on connection to the Internet. High-speed data subscribers connect to TWC’s cable systems using a cable modem, which TWC provides at no charge, or which subscribers can purchase on their own. TWC offers four tiers of Road Runner High-Speed Online service in all of its systems: Turbo, Standard, Basic and Lite. Turbo offers subscribers speeds of up to 20 megabits per second (Mbps) downstream and 2 Mbps upstream. TWC provides Turbo and Standard subscribers with Powerboost, which allows users to initiate brief download speed bursts when TWC’s network capacity permits.

TWC’s Road Runner High-Speed Online service provides communication tools and personalized services, including e-mail, personal computer (PC) security, parental controls and online radio, without any additional charge. The Roadrunner.com portal provides access to content and media from local, national and international providers and topic-specific channels, including entertainment, dating, games, news, sports, travel, music, movie listings, shopping, ticketing and coupon sites. In addition to Road Runner High-Speed Online, most of TWC’s cable systems provide their high-speed data subscribers with access to the services of certain other on-line providers, including Earthlink.

TWC launched Road Runner Mobile, a wireless mobile broadband service. Road Runner Mobile provides customers with wireless broadband Internet access on their computers via a TWC-provided data card. TWC offers service delivered over Clearwire Corporation’s (Clearwire) fourth-generation (4G) WiMax network and Sprint Corporation’s (Sprint) third-generation (3G) CDMA network.

Commercial Services

TWC offers video, high-speed data, voice, networking and transport services to commercial customers marketed under the Time Warner Cable Business Class brand. TWC offers small- and medium-sized businesses a range of video programming tiers and music services. Packages are designed with a variety of options to meet the specific demands of a business environment, with access to entertainment and news programming covering world events, local news, weather and financial markets. As of December 31, 2009, TWC served 160,000 commercial video subscribers.

TWC offers commercial customers a variety of high-speed data, networking and transport services. TWC provides high-speed data service to small businesses with speeds of up to 15 Mbps downstream and up to 2 Mbps upstream and, in New York City, up to 50 Mbps downstream and up to 5 Mbps upstream with Wideband. TWC also provides dedicated access to small- and medium-sized businesses through a fiber connection to the Internet.

TWC offers Metro Ethernet service that provides high capacity connections to the Internet for commercial customers with geographically dispersed locations with speeds ranging from up to sub-T1 to up to 10 gigabits per second (Gbps). TWC’s Metro Ethernet service also extends the reach of the customer’s local area network or (LAN) within and between metropolitan areas.

TWC offers its commercial voice service, Business Class Phone, to a range of businesses. Business Class Phone is a multi-line voice service developed for small businesses, which provides unlimited local, intrastate and long distance calling, along with other key business features, such as call restrictions, non-verified account codes and three-way call transfer.

TWC earns revenues by selling advertising to national, regional and local customers. In many locations, TWC has formed advertising interconnects, to deliver locally inserted commercials across geographic areas, replicating the reach of the local broadcast stations.

The Company competes with AT&T Inc., Verizon Communications Inc., Frontier Communications Corporation, Cincinnati Bell, Inc., DISH Network Corporation, DirecTV Group Inc., Netflix Inc., Apple Inc., Sprint, T-Mobile USA, Inc., Clearwire, Vonage, Skype, magicJack and Google Voice.

Formed through the merger of Time Inc.’s cable television company, American Television and Communications Corp., and Warner Cable, a division of Warner Communications

Business Line
Cable operator in the United States and engaged in developing and launching innovative video, data and voice services
Subsidiary
CLEARWIRE CORPORATION
Advisor
ERNST & YOUNG LLP
IPO date

US SIC Code
4841
Company Address
17th Floor
60, Columbus Circle
City province or state postal code
10023, NEW YORK, NY
Phone: +1 212 364 8200
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.timewarnercable.com