® ® To Quad or not to Quad: customers converting to cable digital phone (Verizon Bulks Up OUR SPOTLIGHT ON CURRENT DBS OFFERS for DIRECTV and DISH Network Bundles, Todd Spangler, Multichannel News, 2/5/2007). The that is the question. huge price tag on rolling out FiOS beyond its current footprint Information on these products as part of RBOC bundles can Ok, multiple choice: The Sprint, Comcast, Time Warner Cable, will keep Quad Play out of FiOS homes. be found on the chart inside. For more information, go to Additional Online Offer: Cox and Advance/Newhouse joint venture for the purchase of www.directv.com and www.dishnetwork.com. • Free installation wireless spectrum was to: In a recent Reuters interview (AT&T enters the “Quad-play” age, Sinead Carew, Reuters.com, 1/11/2007), AT&T’s Chief Marketing A full-service marketing company • Free portable DVD player DIRECTV A: offer wireless phone service as part of a Officer Rick Welday stated, “We’re all about the quadruple play.” • Free shipping ® “Quad Play” bundle Welday pointed to the transition of the Cingular Wireless brand PICK YOUR PACKAGE. LOCK YOUR PRICE. PLUS 3 into the new AT&T as the key to their Quad Play strategy. At this ® ® • Free HD or DVR upgrade FREE MONTHS OF HBO AND CINEMAX . B: use the spectrum for wireless applications for time, it is not known if this will include U-verse customers. What we know TM $10 bill credit per month locked in for 12 consecutive months the “last mile” of service to the home — a ® after mail-in coupon on these programming packages: DISH Network cable answer to Verizon’s FiOSSM service that Qwest is also joining the Quad Play game (Quadruple play is is in our name. uses fiber to the home on the way, Joyzelle Davis, Rocky Mountain News, 2/5/2007), • Choice Package $39.99/month for 12 months – regular Digital Home Advantage Lease Offer like Verizon offering DIRECTV along with DSL in its Quad bundle. Like A Bad Horror price $49.99/month (140+ channels, includes local • Lease of a DISH Network system with up to 4 receivers C: both of the above Video Acquisition channels where available) and remotes (maximum of 4 receivers with this plan) Because of these Quad Play threats from the Telcos, larger Movie, These Guys Just If you answered C, you are correct! MSOs have already begun to counter. Cable companies have Keep Coming Back! They’re doing it by delivering excellent customer - 3 FREE MONTHS OF HBO AND CINEMAX not available • “In-Home Service Plan®” been adding wireless in several areas: Comcast in Boston, Time service (DBS Tops Customer-Satisfaction Study, Winback with this package • Free delivery of all equipment Warner Cable in Cincinnati and Cox in Phoenix and San Diego. Just when cable Triple Play has brought a Digital Life America: DirecTV, EchoStar’s Dish sense of competitive security, cable nemeses • Choice Xtra Package $44.99/month for 12 months – It’s obvious that Verizon, Qwest and AT&T are forcing the hands Network Score High, Linda Moss, Multichannel DVR • Free standard installation of dish and each receiver Initially, cable wanted to deny or defer using the wireless from the past keep coming back to life regular price $54.99/month (185+ channels, includes local of cable to roll out limited Quad Play services. News, 3/19/2007) and niche programming, spectrum for Quad Play. All indications were pointing to the like horror movie villains. DTH, MMDS and channels where available) • $49.99 activation fee required – fee refunded with promising HDTV superiority and providing TV commitment to 18 months of qualifying programming use of WiMAX and long-term “last mile” applications (Time CableQuest will continue to provide information on the DSL continue to claw at cable’s dwindling service in telco bundles. Loyalty & Retention CQ- 3 FREE MONTHS OF HBO AND CINEMAX Warner to Avoid Marketing ‘Quad Play’, Tom Steinert-Threlkeld, market share ( competitions’ rollouts of Quad Play services, as shown on Cable Penetration Hits 17-Year Programming Offer - $100-Cash-Back ® ® ® • Plus Package $49.99/month for 12 months – regular price Multichannel News, 1/16/2007), but all bets seem to be off the inside pages of the CQ Competitive Review. For more Low, Steve Donohue, Multichannel News, AT&T , Verizon, Windstream and Qwest Digital Cable $59.99/month (185+ channels, includes local channels where • $100 credit (ten $10 credits) with programming since Verizon® and AT&T® began actively promoting their own information on marketing materials to combat 3/19/2007) at a time when cable thought it continue to prop up their DSL service by offering available) package of $29.98/month or higher “Quad Play” services. these and other competitive threats, go to had silenced these home intruders. DTH TV, adding phone service and calling it a Digital Phone - 3 FREE MONTHS OF HBO AND CINEMAX • Mail-in rebate required to get credits www.cablequestpartners.com or call us at bundle. AT&T added virtually no new U-verse Verizon is offering a bundle of services, 330-650-5300. The real long-term competition should TV subscribers in the 4th quarter of 2006, but is ® SM - DVR service with FREE DVR upgrade (after $99 • New residential customers only comprising its unlimited home phone come from Verizon FiOS (207,000 FiOS lurching back into several new markets this year. High Speed Data ® instant online rebate) • Must place order and activate system by 5/31/07 to be plan, DSL Internet service, DIRECTV and TV customers by the end of 2006) and it The U-verse version of FTTN is not much more • Choice Xtra + HD Package $54.98/month for 12 months eligible one of its existing wireless plans, primarily seems the eventual convergence of IPTV. than DSL in a fiber mask. Bundles – regular price $64.98/month (195+ channels, includes local in Florida and Texas. The move is really Technological advances, repackaging channels where available) $100 Back High-Speed Internet Offer intended to stop the bleeding of phone and good customer service have enabled “I’m not dead yet!” (Monty Python and the competitors from the past to maintain a pulse. Spring 2007 - 3 FREE MONTHS OF HBO AND CINEMAX • DSL purchased through DISH Network or DISH Network Holy Grail, Python Pictures, 1975) could be the High-Speed Internet Powered by WildBlue® mantra of Clearwire® Wireless Broadband, who Reports of the death of DBS have been greatly - HD Access with FREE HD receiver upgrade (after $99 has revived 1990s MMDS technology to provide instant online rebate) • Available to new and existing customers who purchase exaggerated. By the end of 2006, DIRECTV® and through 5/31/07 EchoStar Communications hit 25.2% penetration wireless Internet services. Despite lacking a • Plus HD Package $59.99/month for 12 months – regular price bundle, Clearwire is making cable hearts • Must submit completed Mail-In Redemption form with of the pay TV market! How can this be? These $69.99/month (195+ channels, includes local channels where beat faster with its WiMAX-like portable New Look – Same Book available) copies of billing statements within 60 days of your guys still don’t have a two-way answer and many are writing them out of future telecommunication broadband, recently launched VoIP service - 3 FREE MONTHS OF HBO AND CINEMAX high-speed Internet activation date Welcome to the new look, new name and scripts (see For DBS the Clock is Ticking, In a two- and aggressive marketing. Other restrictions and conditions apply, including credit - DVR service with FREE DVR upgrade (after $99 way world time is not on satellite’s side, Peter D. same competitive resolve of CableQuest’s approval and penalties for service cancellation. So what do all of these old villains have in instant online rebate) Shapiro, CableWorld, 1/8/2007). quarterly newsletter. The periodical formerly common? They are all coming back to life • Premier Package $65.99/month for 12 months – regular price known as the Quest Report is now the $89.99/month (250+ channels, includes local channels where Like the last scene from Carrie, Dr. John Malone in your franchised homes! Fortunately, one available) has his grasp back on one leg of the satellite cable marketing company — CableQuest aptly named CQ Competitive Review. We industry. It seems like just yesterday (actually it — has spent time researching these beasts - 3 FREE MONTHS OF HBO AND CINEMAX 330.650.5300 look forward to providing you with a useful 877.313.5300 was 1998) that the good doctor could not cure and developing marketing materials to drive - DVR service with FREE DVR upgrade (after $99 instant Kacy C. Wells Primestar’s wounds, and Primestar was eventually a stake into the heart of every one of them. snapshot of the market and competition, as online rebate) www.cablequestpartners.com transplanted into DIRECTV. Why would Malone’s Cable marketers can do what those helpless we have for the last seventeen issues! Liberty Media want to get back into this fray? - Includes 31 premium movie channels and over 30 1742 Georgetown Rd. horror victims never seem to think of: pick up specialty sports networks Suite A The fact is that satellite keeps taking market the phone and call for help! Offers end 5/1/2007 and are based on approved credit. New Hudson, OH 44236 Pete Rubin share from cable. DIRECTV finished 2006 with customers only (lease required). Lease fee $4.99/month for 15.13 million subscribers, up 5% over 2005. second and each additional receiver. DISH® Network added 1.065 million customers during 2006, finishing at 13.1 million subscribers. A full-service marketing company A full-service marketing company Competitive Overview The best way to beat your competition is to know what they are offering in your market. Here is a comprehensive look at your competitors and what they currently offer: A full-service marketing company

Provider AT&T® AT&T® AT&T® AT&T® Verizon® CQVerizon® Verizon® AT&T® BellSouth® AT&T® BellSouth® Qwest® Qwest® Windstream® Verizon Ultimate FreedomSM BellSouth Bundle 4 Services Plan Qwest Home Entertainment Windstream Connect Unlimited plus “Double Pak with Internet” + DISH® Network “Quad Pak” “AT&T HomezoneSM” “AT&T U-verseSM” Verizon Triple FreedomSM + DIRECTV® Verizon FiOSSM TV and Internet Service BellSouth Bundle 3 Services Plan Qwest Total Convenience Bundle Name (quad play services with (quad play services with (triple play services with Broadband & DISH Bundle (triple play (triple play services with DSL + satellite) (quad play services with DSL + satellite) (triple play services with DSL + satellite) (triple play services with FTTN) (triple play services with DSL + satellite) (triple play services with FTTH) (triple play services with DSL + satellite) (quad services with DSL + satellite) DSL + satellite) DSL + satellite) DSL + satellite) services with DSL + satellite)

Bundled Services in Package (local and long distance phone, (high-speed Internet, local and long (local and long distance phone, (local and long distance phone, (local and long distance phone, (local and long distance phone, DSL (high-speed Internet, VoIP telephone and (local and long distance phone, (local and long distance phone, DSL (local and long distance phone, (local and long distance phone, DSL (local and long distance phone, DSL Internet, satellite TV with DVR distance telephone and IPTV, from DSL Internet + satellite TV) DSL Internet + satellite TV) DSL Internet + satellite TV) Internet, satellite TV and wireless phone) IPTV all from Fiber To The Home) DSL Internet + satellite TV) Internet, satellite TV and wireless phone) DSL Internet + satellite TV) Internet, satellite TV and wireless phone) DSL Internet + satellite TV) and wireless phone) Fiber To The Node)

AT&T Yahoo!® High Speed Internet AT&T Yahoo!® High Speed Internet Qwest Choice™ DSL Deluxe with Qwest Choice™ DSL Deluxe with High Speed Internet Service AT&T Yahoo!® High Speed Internet Express AT&T Yahoo!® High Speed Internet Verizon Online DSL Internet Service Verizon Online DSL Internet Service Verizon FiOS Internet Service BellSouth FastAccess® DSL Ultra BellSouth FastAccess® DSL Ultra Windstream Broadband Express U-verse Enabled MSN® Premium DSL MSN® Premium DSL

Express Package - up to 1.5 Mbps Express Package - up to 1.5 Mbps Up to 5 Mbps/2 Mbps for $39.95/mo.; up to Broadband 1.5 Mbps Package Connection speeds: DSL Power Connection speeds: DSL Power 1.5 Mbps/256 Kbps Maximum 1.5 Mbps/256 Kbps Maximum Speeds up to 1.5 Mbps download Speeds up to 1.5 Mbps download Specs Express Package - up to 1.5 Mbps Express Package - up to 1.5 Mbps Pro Package - 1.5 to 3.0 Mbps Pro Package - 1.5 to 3.0 Mbps 15 Mbps/2 Mbps for $49.95/mo.; up to 30 Broadband 3.0 Mbps Package Package 3.0 Mbps/768 Kbps Package 3.0 Mbps/768 Kbps Downstream/Upstream Downstream/Upstream and up to 896 Kbps upload and up to 896 Kbps upload Elite Package - 3.0 to 6.0 Mbps Elite Package - 3.0 to 6.0 Mbps Mbps/5 Mbps for $199.95/mo. Broadband 6.0 Mbps Package

Arkansas, California, Connecticut, Local calling plans available in Local calling plans available in Arkansas, California, Connecticut, Illinois, Nationwide, but restricted to areas Limited availability along selected Illinois, Indiana, Kansas, Michigan, Alabama, Florida, Georgia, Kentucky, Alabama, Florida, Georgia, Kentucky, Primarily in 14 Western and Primarily in 14 Western and 16 States: AL, AR, FL, GA, KY, MO, MS, Available Locations Indiana, Kansas, Michigan, Missouri, Nevada, where AT&T Yahoo! High Speed Internet 15 markets nationwide 29 states and Washington, D.C. 29 states and Washington, D.C. corridors of CA, CT, DE, FL, IN, MA, MD, Missouri, Nevada, Ohio, Oklahoma, Louisiana, Mississippi, North Carolina, Louisiana, Mississippi, North Carolina, Midwestern States Midwestern States NC, NE, NM, NY, OH, OK, PA, SC and TX Ohio, Oklahoma, Texas and Wisconsin is available NH, NJ, NY, OR, PA, TX, VA, WA Texas and Wisconsin South Carolina, and Tennessee South Carolina, and Tennessee

TV Service DISH Network DISH® Network DISH® Network AT&T U-verse Digital Television DIRECTV DIRECTV® Verizon FiOS Digital Television DIRECTV® DIRECTV® DIRECTV® DIRECTV® DISH® Network

DISH Network package with library IPTV Packages: U200 Basic package FiOS TV Premier Package — DIRECTV TOTAL CHOICE® DIRECTV TOTAL CHOICE® of downloadable movies and music. — over 190 channels. U300 — over 240 TV Services — package most DISH Network — America’s Top DISH Network — America’s Top DIRECTV TOTAL CHOICE® programming DIRECTV TOTAL CHOICE® programming Local channels, over 200 programming — Over 155 channels programming — Over 155 channels DIRECTV PLUS™ package — DIRECTV TOTAL CHOICE® programming DISH Network — America’s Top View, store and organize digital photos. channels including The Movie Package. comparable to Digital Cable 200 package + Local Channels 200 package + Local Channels — starting at $49.99/mo. plus tax — starting at $49.99/mo. plus tax digital channels and 47 music starting at $49.99/mo. plus tax, starting at $49.99/mo. plus tax, Over 185 channels plus DVR service — Over 155 channels 200 package + Local Channels Access and control DVR remotely from U400 — over 300 channels channels for $42.99/mo. less $10 for bundle less $10 for bundle any web-connected PC including HBO and Cinemax

VoiceWing® (VoIP) Unlimited for DSL Local Phone Service All Distance® Online Select All Distance® Online Select All Distance® Select All Distance® Select Verizon Freedom Essentials Verizon Freedom Essentials The BellSouth PreferredPack® Plan The BellSouth PreferredPack® Plan Qwest Choice Home Qwest Choice Home Connect Unlimited and FiOS — $24.95

Local access line, unlimited local Local access line, unlimited local Local access line, unlimited Local access line, unlimited Unlimited local calling with 5 Unlimited local, regional toll plus Unlimited local, regional toll plus Unlimited local calling with 5 calling, Caller ID with Name, calling, Caller ID with Name, local calling, Caller ID with Name, local calling, Caller ID with Name, calling features: Caller ID Deluxe, Call Unlimited local phone service with Unlimited local phone service with 3 calling features: Home Voice Mail, 3 calling features: Home Voice Mail, calling features: Caller ID Deluxe, Unlimited local service, caller ID, call Specs LINE BACKER®/InLine® (IN) inside wire LINE BACKER®/InLine® (IN) inside wire LINE-BACKER®/InLine® (IN) inside wire LINE-BACKER®/InLine® (IN) inside wire Unlimited local and long distance Waiting Deluxe, Call Return, Privacy up to 3 of our most popular up to 3 of our most popular Caller ID, Call Waiting Caller ID, Call Waiting Call Waiting Deluxe, Call Return, Privacy waiting maintenance plan, plus your choice of maintenance plan, plus your choice of maintenance plan, plus your choice of maintenance plan, plus your choice of Directory® Service, and Three-Way calling features calling features Directory® Service, and Three-Way Calling. 8 additional calling features 8 additional calling features 2 additional calling features 2 additional calling features Calling.

VoiceWing (VoIP) Unlimited for DSL The BellSouth PreferredPack Long Distance Phone Service All Distance Online Select All Distance Online Select All Distance Select All Distance Select Verizon Freedom Essentials Verizon Freedom Essentials Advantage 5 Cents Value Plan Qwest 5 Cent Plan Qwest Choice Unlimited Long-Distance Connect Unlimited and FiOS — $24.95 Unlimited Plan

Specs Unlimited nationwide calling Unlimited nationwide calling Unlimited nationwide calling Unlimited nationwide calling Unlimited long distance Unlimited long distance Unlimited local and long distance Per-minute rate of 5¢ for $2.99 per mo. Unlimited long distance $.05 per min. to any U.S. city at anytime Unlimited long distance Unlimited long distance

Wireless Phone N/A Cingular® Nation 450 plan N/A N/A N/A America’s Choice® N/A N/A Cingular® Nation 450 with Rollover N/A Qwest Nationwide Wireless® N/A

450 anytime minutes and 5000 450 Minutes — 500 minute plan, plus a free Nokia® night and weekend minutes 450 anytime minutes, Unlimited IN Calling and 2125i wireless phone (after $10 per month with no roaming 5000 night and weekend minutes Specs N/A N/A N/A N/A Night & Weekend Minutes; N/A N/A N/A credit on 2nd or 3rd bill, with a two-year N/A or long distance charges, plus with unlimited Mobile-to-Mobile for no bundled discount for Verizon agreement) and free unlimited nights Unlimited Mobile-to-Mobile $39.99; minus $10.00 for bundle Wireless service and weekends starting at 9 p.m. and Rollover® Minutes

New AT&T residential customers Must retain qualifying services Must retain qualifying services Subject to availability in certain Online offer for one month free AT&T $13/mo. off high-speed Internet $13/mo. off high-speed Internet with and new DISH Network customers (Freedom Essentials, 3.0 Mbps (Freedom Essentials, 3.0 Mbps Not available in all areas. One-year locations. Must be a Windstream Yahoo! High Speed Internet after Price excludes taxes, fees and other Price excludes taxes, fees and other with two-year commitment; $10 off two-year commitment; $10 off DIRECTV Online offer for one month free AT&T only. AT&T Yahoo! High Speed Internet Verizon High Speed Internet, and Verizon High Speed Internet, and commitment required for FiOS wireline customer. New residential rebate. Credit approval and new charges, a $0.99/mo. carrier cost charges, a $0.99/mo. carrier cost DIRECTV PLUS package for 12 months PLUS package for 12 months after Yahoo! High Speed Internet after service and local phone line required. AT&T Yahoo! High Speed Internet Verizon Wireless or DIRECTV service Verizon Wireless or DIRECTV service services. $69 early termination fee may DISH Network customers only. Credit two-year service commitment on recovery fee for long distance. Available recovery fee for long distance. Available after mail-in rebate, plus $100 off DVR mail-in rebate, plus $100 off DVR lease rebate. 12-mo. commitment with $99 Cost includes $9.99/mo. (Homezone U-verse Enabled may not be through Verizon) for the duration of through Verizon) for the duration of the apply. $19.99 activation fee. Discounts approval required & pre-payment Restrictions eligible Cingular calling plan required. to new and existing customers. Savings to new and existing customers. Savings lease upgrade after mail-in rebate upgrade after mail-in rebate (exclusive to early termination fee. Available for Enablement Fee) and $5.98/mo. purchased separately; purchase of the promotional 1-year agreement promotional 1-year agreement plan. on service if prepaid for one year. may be required. If any required Substantial early termination fees require Voice service (qualifying local require Voice service (qualifying local (exclusive to new DIRECTV customers). new DIRECTV customers). Also includes residential AT&T Yahoo! High Speed (DVR service fee). Must have, AT&T U-verse TV required. plan. Either a one-time modem fee Either a one-time modem fee of $29.99 Set top box is required for all digital bundle component is disconnected, for each service. Prices may vary by service and $2.95/mo. or higher long service and $2.95/mo. or higher long Also includes additional $9 a month off additional $9 a month off bundle pricing Internet customers only. or purchase, a compatible Residential of $29.99 or shipping and activation or shipping and activation charge of programming services. VoiceWing all remaining components convert to location. Prices do not include taxes or distance plan). distance plan). bundle pricing for 12 mo. for 12 mo. Gateway available from AT&T charge of $19.99 will apply. Additional $19.99 will apply. Additional taxes and billed separately to a credit card. the regular tariffed monthly rate. Other other additional regulatory fees. Internet Services. taxes and surcharges may apply. surcharges may apply. restrictions may apply.

$114.00 (high speed “Pro Package” and $97.89 (based on $39.95 level of high $117.89 with Broadband Monthly Cost — Promotional $88.98 for 1 mo. $123.97 $108.95 (high-speed “Pro” package) $104.99 $134.99 $98.00 or less $135.00 or less $97.96 $117.95 U-verse 300 IPTV package) speed service at 5 Mbps/2 Mbps) 3.0 Mbps Package

$114.00 (high speed “Pro Package” and $107.89 (based on $39.95 level of high $127.89 with Broadband Monthly Cost — After Promotion $108.97 $147.97 $128.95 (high-speed “Pro” package) $109.99 $139.99 $108.00 or less $150.00 or less $139.96 $156.95 U-verse 300 IPTV package) speed service at 5 Mbps/2 Mbps) 3.0 Mbps Package

*All satellite and DSL competitive company prices and promotional information in this issue of the CQ Competitive Review were collected through various public sources and are subject to change. Prices may vary by location. All package & pricing information updated through 4/12/07