Profile: Cincinnati Bell Inc. (CBB)

Cincinnati Bell Inc., incorporated in 1983, is a full-service provider of data and voice communications services and equipment over wireline and wireless networks. The Company provides telecommunications service primarily on its owned local and wireless networks. In addition, the Company provides business customers with office communications systems and information technology solutions, including data center and managed services, telecommunications equipment, and information technology hardware. The Company operates in three segments: Wireline, Wireless and Technology Solutions. In May 2009, the Company announced the acquisition of Cintech LLC. Cintech provides Internet protocol (IP)-based voice and data communications services, including notification, response and interaction scheduling.

Wireline

The Wireline segment combines the operations of Cincinnati Bell Telephone Company LLC (CBT) and Cincinnati Bell Extended Territories LLC (CBET), and the operations of Cincinnati Bell Any Distance Inc. (CBAD), Cincinnati Bell Complete Protection Inc. (CBCP), the Company’s payphone business and Cincinnati Bell Entertainment Inc. (CBE). The Wireline segment provides local voice, data, long-distance and other services. Local voice services include local telephone service, switched access, information services, such as directory assistance, and value-added services, such as caller identification, voicemail, call waiting, call return and text messaging. Data services include digital subscriber line (DSL), which provides high-speed data transmission via the Internet, dial-up Internet access, dedicated network access, and gigabit Ethernet (Gig-E) and asynchronous transfer mode (ATM)-based data transport, which businesses principally utilize to transport large amounts of data over a private network.

Long distance services include long distance, voice, audio conferencing, voice-over Internet protocol (VoIP) services, and broadband services, including private line and multi protocol labeling switching (MPLS). Other services offered by the Wireline segment consist of security monitoring services, public payphones, television over coaxial cable and fiber optical cable in limited areas, DirecTV commissioning over its entire operating area, inside wire installation for business enterprises, billing, clearinghouse and other ancillary services primarily for inter-exchange (long distance) carriers. The Company provides wireline voice and data services to territory in southwestern Ohio, northern Kentucky and southeastern Indiana through the operations of CBT, an incumbent local exchange carrier (ILEC).

CBET, a subsidiary of CBT, operates as a competitive local exchange carrier (CLEC) and provides all of its voice and data services on its own network or through purchasing unbundled network elements (UNE-L or loops) from incumbent local carriers. The Wireline segment provides voice services over a 100% digital, circuit switch-based network to end users through access lines. As of December 31, 2008, the Wireline segment had approximately 779,700 voice access lines in service. CBAD provides long distance, audio conferencing and VoIP services to businesses and residential customers in the Greater Cincinnati and Dayton, Ohio areas. At December 31, 2008, CBAD had approximately 531,600 long distance subscribers, consisting of 352,700 residential and 178,900 business subscribers.

CBCP provides surveillance hardware and monitoring services to residential and business customers in the Greater Cincinnati area. At December 31, 2008, CBCP had approximately 11,800 monitoring subscribers. The Company’s public payphone business (Public) provides public payphone services primarily within the geographic area of the Wireline segment. Public had approximately 1,900 stations in service as of December 31, 2008. Wireline offers cable television (TV) to 3,900 customers in Lebanon, Ohio.

Wireless

Through Cincinnati Bell Wireless LLC (CBW), the Wireless segment provides advanced digital wireless voice and data communications services through the operation of a global system for mobile communications/general packet radio service (GSM) network with a 3G Universal Mobile Telecommunications System (3G) network overlay in the Company’s licensed service territory, which includes Greater Cincinnati and Dayton, Ohio, and areas of northern Kentucky and southeastern Indiana. Its digital wireless network is connected to approximately 440 towers utilizing 50 megahertz of its licensed wireless spectrum in the Cincinnati Basic Trading Area and 40 megahertz of its licensed spectrum in the Dayton Basic Trading Area. As of December 31, 2008, the Wireless segment served approximately 550,600 subscribers, of which 403,700 were postpaid subscribers who are billed monthly in arrears, and 146,900 were prepaid i-wireless subscribers who purchase service in advance.

Technology Solutions

The Technology Solutions segment provides outsourced telecommunications and information technology (IT) solutions, through the Company’s subsidiary, Cincinnati Bell Technology Solutions Inc. (CBTS) and GramTel Inc. (GramTel). Technology Solutions sells products, software, and labor services to customers in three separate product lines: telecom and IT equipment distribution, data center and managed services, and professional services. Technology Solutions provides end-to-end IT telecommunications infrastructure management.

The data center and managed services product line operates nine data centers that provides off-site infrastructure monitoring, and a range of IT infrastructure management products, including network management, electronic data storage, disaster recovery, and data security management. Data center services include around the clock monitoring of the customer’s computer equipment in the data center, power, and environmental controls.

The Company competes with Time Warner Cable, AT&T, Verizon, Sprint Nextel, T-Mobile and Leap.