Cincinnati Bell
Business Data Service in an Internet Protocol Environment, WC Docket No. 16-143
Special Access Rates for Price Cap Local Exchange Carriers, WC Docket No. 05-25 and RM-10593
Cincinnati Bell Services & Subsidiaries
Entertainment & Communications Services • Cincinnati Bell Telephone Company (“CBT”) – ILEC serving greater Cincinnati for over 140 years • Cincinnati Bell Extended Territories (“CBET”) – CLEC serving areas around Dayton and Mason, Ohio • Cincinnati Bell Any Distance (“CBAD”) – CLEC and long distance provider • eVolve Business Solutions (“eVolve”) – VoIP service provider
IT Services and Hardware • Cincinnati Bell Technology Solutions (“CBTS”)
2 Cincinnati Bell ILEC Territory
3 Yesterday and Today
2006 2016 Voice Lines 887,000 525,000 DSL Internet Subs 198,000 121,700 Fioptics Internet Subs -- 175,000 Video Subs -- 126,800
2015 Revenue Total Cincinnati Bell Inc. $1,167.8 million Entertainment & Communications 743.7 million
4 Investing in the Future
More than $700 million spent on fiber build since 2010 Over 80% of 2015 capital expenditures were for fiber builds and carrier projects Fiber network now spans over 8,100 route miles
Fioptics Capital Expenditures • 2013 $ 79.5 million • 2014 $ 93.1 million • 2015 $179.5 million • 2016 $175.0million (projected) Fioptics currently available to over 509,500 locations – approx. 64% of our territory
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Competition in the Cincinnati Market
At least 6 competitive Ethernet providers offering wholesale service Market pressures are forcing significant reductions in wholesale rates TDM revenue declining as customers move to competitors and transition to Ethernet Ethernet competition will keep DS1/DS3 pricing in check without the need for forced reductions in TDM rates Dark fiber is also a competitive alternative and wireless providers are moving in this direction
6 One Size Does Not Fit All Recognize that the smaller carriers are uniquely situated • CBT operates in a single market • Disproportionately impacted by the proposed reductions • No wireless or significant CLEC operations with which to offset the proposed reductions • Large purchasers have significant leverage over small carriers
Solution • Extend forbearance to all Ethernet and packet-based services and circuit-based services delivering speeds in excess of 45 Mbps • Exclude the small carriers’ DS1/DS3 services from the additional rate reductions at this time and reexamine after 5 years
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