1057758--3/16/2006--TIME_WARNER_TELECOM

related topics

{stock, price, operating}

{debt, indebtedness, cash}

{regulation, government, change}

{regulation, change, law}

{property, intellectual, protect}

{product, market, service}

{stock, price, share}

{competitive, industry, competition}

{system, service, information}

{tax, income, asset}

{customer, product, revenue}

{cost, operation, labor}

{loss, insurance, financial}

{operation, natural, condition}

{personnel, key, retain}

{acquisition, growth, future}

{provision, law, control}

{interest, director, officer}

Risks Relating to Our Business We may be unable to sustain our revenue and cash flow growth despite the implementation of several initiatives designed to do so. Several customers account for a significant portion of our revenue, and some of our customers purchases may not continue due to customer consolidations, financial difficulties or other factors. 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 and term loan B and the indentures relating to each outstanding series of 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. 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 which may also affect our leverage. 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 may be adversely affected by changes to the Communications Act. 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. We depend on key personnel for our current and future performance. We may be required to record additional 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. If we do not adapt to rapid changes in the telecommunications industry, we could lose customers or market share. We must obtain access to rights-of-way and pole attachments on reasonable terms and conditions. Changes in accounting standards regarding stock option plans could limit the desirability of granting stock options, which could harm our ability to attract and retain employees and would also negatively impact our results of operations. Risks Relating to Our Ownership Structure We are controlled by the Class B Stockholders. Time Warner Inc. can sell control of us at any time, and sales by the Class B Stockholders could adversely affect us. We may discontinue the use of the Time Warner name either because we decide to adopt a different brand due to expiration of our trade name license agreement with Time Warne Each of the Class B Stockholders has veto rights over certain actions. The Class B Stockholders and their affiliates may compete with us. Some of our directors may have conflicts of interest.

Full 10-K form ▸

1057758--3/16/2006--TIME_WARNER_TELECOM_INC