Profile: Mediacom Communications Corporation (MCCC.O)

Mediacom Communications Corporation (MCC) is a cable television company serving smaller cities and towns in the United States. The Company provides its customers with an array of products and services, including video services, such as video-on-demand (VOD), high-definition television (HDTV) and digital video recorders (DVR); high-speed data (HSD), also known as high-speed Internet access or cable modem service, and phone service. As of December 31, 2008, the Company served approximately 1.32 million basic subscribers, 643,000 digital video customers, 737,000 HSD customers, and 248,000 telephone customers, totaling 2.95 million revenue generating units (RGUs). It provides the triple play bundle of advanced video services, HSD and phone to 91% of the estimated homes in its network passes. As of December 31, 2008, the Company was operating cable systems in 22 states, principally Alabama, California, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Minnesota, Missouri, North Carolina and South Dakota.

Video

The Company designs its channel line-ups for each system according to demographics, programming preferences, channel capacity, competition, price sensitivity and local regulation. Monthly subscription rates and related charges vary according to the type of service selected and the type of equipment used by subscribers. Its broadcast basic service includes, for a monthly fee, 12 to 20 local broadcast channels, network and independent stations, limited satellite-delivered programming and local public, government, home-shopping and leased access channels. The Company’s family basic service includes, for an additional monthly fee, 40 to 55 additional satellite-delivered channels such as CNN, ESPN, Lifetime, MTV, USA Network and TNT. As of December 31, 2008, the Company had 1.32 million basic subscribers, representing a 46.2% penetration of estimated homes passed. The Company offers several programming packages that include digital basic channels, multichannel premium services, sports channels, digital music channels, an interactive on-screen program guide and full access to its VOD library. Digital customers receive up to 230 digital channels, depending on the level of service selected. A digital converter or cable card is required to receive its digital and other advanced video services. Customers pay a monthly fee for digital video service, which varies according to the level of service taken and the number of digital converters in the home. As of December 31, 2008, it had 643,000 digital customers, representing a 48.8% penetration of its basic subscribers.

Pay-Per-View Service allows customers to pay to view a single showing of a feature film, live sporting event, concert and other special event, on an unedited, commercial-free basis, including feature films, live sporting events, concerts and other special events. The Company’s HDTV service offers up to 26 high-definition channels, including broadcast networks, national cable networks, channels and regional sports networks. Mediacom On Demand, its VOD service, provides on-demand access to over 4,000 movies, special events and general interest titles and is available to 87% of our digital customers. Subscription-based VOD (SVOD) premium packages, such as Starz!, Showtime and HBO are included when customers take such premium programming packages, and movies and other programming can be ordered on a first-run, pay-per-view basis.

Mediacom Online

Mediacom Online offers to consumers packages of cable modem-based services with varied speeds. These services include the Company’s interactive portal, which provides multiple e-mail addresses, personal Webspace and local community content. Mediacom Online offers downstream speeds ranging from 8 megabits per second to 15 megabits per second, and its flagship residential data service offering, at 8 megabits per second. As of December 31, 2008, the Company had 737,000 high-speed data customers.

Mediacom Phone

Mediacom Phone offers customers unlimited local, regional and long-distance calling within the United States, Puerto Rico, the United States Virgin Islands and Canada for a flat monthly rate. Product features include voice mail, caller identification (ID) with name and number, call waiting, three-way calling and Emergency 911 dialing. Phone customers can keep their existing phone number where local number portability is supported and use existing phones, jacks, outlets and in-home wiring. As of December 31, 2008, the Company had 248,000 phone customers.

Mediacom Business Services

Through its network technology, the Company also provides a range of data services for the commercial market. For small and medium-sized businesses, it offers several packages of high-speed data services that include business e-mail, Webspace storage and several Internet protocol address options. Using its fiber-rich regional networks, the Company also offers Internet access and data transport solutions for businesses, including the vertical markets of healthcare, financial services and education.

The Company competes with DIRECTV, Inc., DISH Network Corp., Verizon Communications Inc., Qwest Communications International, Inc. and AT&T Inc.