1057758--2/12/2010--tw_telecom

related topics

{debt, indebtedness, cash}

{condition, economic, financial}

{tax, income, asset}

{regulation, government, change}

{system, service, information}

{customer, product, revenue}

{capital, credit, financial}

{product, market, service}

{competitive, industry, competition}

{loss, insurance, financial}

{cost, operation, labor}

{personnel, key, retain}

{acquisition, growth, future}

{operation, natural, condition}

The current economic environment in the U.S. and globally could affect our future operating results. We may be unable to sustain our revenue and cash flow growth despite the implementation of several initiatives designed to do so. Our revenue, margins and cash flow are subject to fluctuations that may be magnified by impact of the current or a future economic downturn. Several customers account for a significant portion of our revenue, and some of our customers may disconnect their services due to customer consolidations, financial difficulties or other factors. The market for our services is highly competitive, and many of our competitors have significant advantages that may adversely affect our ability to compete with them. If we do not adapt to rapid changes in the telecommunications industry and continue to offer services that satisfy customers needs, we could lose customers or market share. Our substantial existing debt and debt service requirements could impair our financial condition and our ability to fulfill our obligations under our debt. Our revolving credit facility, Term Loan B and the indenture relating to our senior notes contain restrictive covenants that may limit our flexibility, and breach of those covenants may cause us to be in default under those agreements. We will require substantial capital to expand our operations and may not be able to obtain additional financing due to recent and possible future disruptions in the financial markets. We may be adversely impacted by deterioration in the financial condition of financial institutions or mutual funds that hold our investments. We may complete a significant business combination or other transaction that could increase our shares outstanding, and may result in a change in control, and increase our debt. Our ability to use net operating loss ( NOL ) carryforwards to reduce future tax payments could be negatively impacted if there is an ownership change as defined under Section 382 of the Internal Revenue Code and our Section 382 stockholder rights plan, which is intended to help preserve our NOLs, may not be effective. We have experienced reductions in switched access and reciprocal compensation revenue as a result of regulatory rate reform, and we may experience further such reductions in the future. We may be adversely affected by changes in the regulation of special access services. We depend on key personnel for our current and future performance. We may be required to record impairment charges in the future. Terrorism or other business disruptions could affect our future operating results. We depend on third party vendors for information systems. We must obtain access to rights-of-way and pole attachments on reasonable terms and conditions; capacity license agreements are important to our operations. Our ability to offer residential and content services is limited by our Capacity License Agreements.

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1057758--2/12/2010--tw_telecom_inc.