Profile: Cincinnati Bell Inc (CBB)
9 Dec 2013
Cincinnati Bell Inc., incorporated on July 5, 1983, is a full-service provider of data and voice communications services over wireline and wireless networks, a full-service provider of data center colocation and related managed services, and a reseller of information technology (IT) and telephony equipment. The Company provides telecommunications service to businesses and consumers in the Greater Cincinnati and Dayton areas on its owned wireline and wireless networks. The Company also provides business customers with outsourced data center colocation operations and related managed services in data center facilities, located in Cincinnati, Houston, Dallas, and Austin. The Company operates in four segments: Wireline, Wireless, Data Center Colocation, and IT Services and Hardware. In November 2011, CyrusOne, a wholly owned subsidiary of the Company, purchased 175,000-square-foot building in Houston West site. In January 2012, the Company acquired data center facility in Texas. In January 2012, the Company purchased a 700,000 square foot building on 30 acres of land in Dallas, Texas.
The Wireline segment provides local voice, data, long distance, entertainment, voice over Internet protocol (VoIP), and other services over its owned and other wireline networks. Local voice services include local telephone service, switched access, and value-added services, such as caller identification, voicemail, call waiting, and call return. Data services include high-speed Internet using digital subscriber line (DSL) technology and over fiber using its gigabit passive optical network (GPON). Data services also provide data transport for businesses, including local area network (LAN) services, dedicated network access, and metro ethernet and dense wavelength division multiplexing (DWDM)/optical wave data transport, which principally are used to transport amounts of data over private networks.
Cincinnati Bell Telephone Company LLC (CBT), a subsidiary of the Company, is the incumbent local exchange carrier (ILEC) for the approximate 25-mile radius around Cincinnati, Ohio, which includes parts of northern Kentucky and southeastern Indiana. CBT has operated this ILEC territory for approximately 140 years, and approximately 95% of Wireline voice and data revenue, as of December 31, 2011, was generated within this ILEC territory. Long distance and VoIP services include long distance voice, audio conferencing, VoIP and other broadband services including private line and multi-protocol label switching (MPLS), a technology that enables a business customer to privately interconnect voice and data services at its locations. Entertainment services are comprised of television through its Fioptics product suite, which covers aapproximately 20% of Greater Cincinnati, and DirecTV commissioning over the Company’s entire operating area. Other services primarily include inside wire installation for business enterprises, rental revenue, public payphones and clearinghouse services.
CBET provides voice and data services on either its own network or through purchasing unbundled network elements (UNE-L) from various incumbent local carriers. The ILEC and competitive local exchange carrier (CLEC) territories are linked through a synchronous optical fiber network (SONET), which provides route diversity between the two territories through two separate paths. The Wireline segment provides voice services over a digital circuit switch-based network to end users via access lines. The Wireline segment had 621,300 voice access lines in service as of 2011. The Company has approximately 426,000 residential customers in Greater Cincinnati and Dayton, Ohio, 52% of which bundle two or more Company products and 17% of which bundle three or more Company products.
Data revenue consists of data transport, DSL high-speedIinternet access, Fioptics high-speedIinternet 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 business customers. CBT has a business-oriented data network, offering high-speed and high capacity data transmission services over an interlaced ATM - Gig-E backbone network. During 2011, the Company had 218,000 high-speed Internet subscribers. In addition, the Company also had 39,300 Fioptics high-speed Internet customers.
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 areas as well as VoIP and other broadband services, including private line and MPLS, within and beyond its traditional territory to business customers. During 2011, CBAD had approximately 447,400 long distance subscribers. VoIP services are provided to business customers in the Company’s traditional Greater Cincinnati and Dayton, Ohio operating territory and, to a lesser extent, to businesses outside of this area, primarily in Ohio, Indiana, Illinois, and Kentucky. During 2011, VoIP access line equivalents totaled 40,700.
The Company to provide customers with its Fioptics product suite of services, which include entertainment, high-speed Internet and voice services, in areas in which fiber optic cable is laid. In 2011, the Company launched its Internet protocol television (IPTV) platform. This technology generally involves fiber facilities to the neighborhood node, and then copper-based facilities for the last mile to the consumer household. As 2011, the Company passed 134,000 entertainment eligible units and had 39,600 Fioptics entertainment subscribers. As of 2011, Fioptics offered 350 entertainment channels, including digital music, local, movie, and sports programming, as well as Indian and Spanish-language packages; 80 high-definition channels; parental controls, high definition (HD) dynamic voltage restorer (DVR) and video-on-demand; high-speed Internet from 10 megabits per second (mbps) to 100 mbps, and local voice and long distance services. The Company also is an authorized sales agent and offers DirecTV satellite programming to customers in its operating territory through its retail distribution outlets.
The Company provides building wiring installation services to businesses in Greater Cincinnati and Dayton, Ohio on a project basis. CBT’s subsidiary, Cincinnati Bell Telecommunications Services LLC, operates the National Payphone Clearinghouse (NPC) in an agency function, facilitating payments from inter-exchange carriers to payphone service providers (PSPs) relating to the compensation due to PSPs for originating access code calls, subscriber 800 calls, and other toll free and qualifying calls. On August 1, 2011, the Company sold substantially all of the assets associated with its home security monitoring business, Cincinnati Bell Complete Protection Inc. (CBCP).
Cincinnati Bell Wireless LLC (CBW) provides 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 third generation (3G) universal mobile telecommunications system network overlay, which is able to provide data services, such as streaming video. Wireless services are provided to customers in the Company’s licensed service territory, which includes Greater Cincinnati and Dayton, Ohio, and areas of northern Kentucky and southeastern Indiana. The Company’s customers are also able to place and receive wireless calls nationally and internationally. The Company’s digital wireless network utilizes approximately 455 cell sites in its operating territory. The Company owns the licenses for the spectrum, which it uses in its network operations. As of 2011, the Wireless segment served approximately 459,000 subscribers, of which 311,000 were postpaid subscribers who are billed monthly in arrears and 148,000 were prepaid i-wirelessSM subscribers who purchase service in advance.
Prepaid i-wirelessSM subscribers pay in advance for use with pay per minute, pay by day, pay by week, or pay by month rate plans. Weekly and monthly smartphone plans are also available for prepaid i-wirelessSM subscribers. In 2011, CBW began offering prepaid service plans utilizing lifeline subsidies from Ohio and Kentucky, which are discounted versions of its standard prepaid service plans to certain customers who receive government assistance. As 2011, CBW had approximately 18,000 lifeline subscribers. CBW’s network, accounted for 1% of total segment revenue during 2011.
Data Center Colocation
The Data Center Colocation segment provides data center colocation services to businesses worldwide, with a particular focus on serving global enterprises. This segment supports enterprise clients in many industries, including energy, oil and gas, mining, medical, technology, finance and consumer goods and services. The Company owns or leases 22 properties in Texas, Ohio, Kentucky, Indiana, Michigan, Illinois, Arizona, England and Singapore. Data Center Colocation services are offered through the Company’s CyrusOne, Cyrus One UK Limited, and GramTel Inc. subsidiaries. As of 2011, the Company had 20 operating data centers. Its CyrusOne is a data center colocation provider in Texas. The Company’s data centers provide customers with power to run IT hardware product and application, and sufficient cooling capacity to maintain optimal temperature in the data center. Customers can place their owned equipment in a shared or private cage or customize their space. Data Center Colocation offers power circuits at various amperages and phases customized to a customer’s power requirements.
IT Services and Hardware
IT Services and Hardware provides a full range of managed IT solutions, including managed infrastructure services, IT and telephony equipment sales, and professional IT staffing services. These services and products are provided in multiple geographic areas through the Company’s subsidiaries, Cincinnati Bell Technology Solutions Inc. (CBTS), CBTS Canada Inc., CBTS Software LLC and Cincinnati Bell Technology Solutions UK Limited. By offering a range of equipment and outsourced services in conjunction with the Company’s wireline network services, the IT Services and Hardware segment provides end-to-end IT and telecommunications infrastructure management designed to reduce cost and mitigate risk while optimizing performance for its customers.
The Company’s telecom and IT equipment distribution product line is a value-added equipment reseller operation. The Company maintains resale relationships with approximately ten branded technology vendors, which allow it to sell and install an array of telecommunications and computer equipment to meet the needs of its customers. This unit also manages the maintenance of a base of local customers with traditional voice systems, as well as converged VoIP systems.
Managed services include products and services that combine assets, either customer-owned or owned by the Company, with management and monitoring from its network operations center, and skilled technical resources to provide a suite of offerings around voice and data infrastructure management. Service offerings include but are not limited to network management, electronic data storage management, disaster recovery, data security management, and telephony management. These services can be bundled and contracted in several ways, either as separate services around a specific product such as storage backups, or by combining multiple products, services, and assets into a utility or as a service model for enterprise customers. The professional services product line provides staff augmentation and professional IT consulting by technical, certified employees. These engagements can be short-term IT implementation and project-based work, as well as term staffing and permanent placement assignments.
The Company competes with Insight Cable, Time Warner Cable, AT&T, Verizon, Sprint Nextel, T-Mobile, TracFone and Leap.
Cincinnati Bell Inc
221 East Fourth Street
CINCINNATI OH 45202