1060490--3/6/2006--BROADWING

related topics

{product, market, service}

{system, service, information}

{regulation, government, change}

{acquisition, growth, future}

{competitive, industry, competition}

{capital, credit, financial}

{control, financial, internal}

{operation, natural, condition}

{personnel, key, retain}

{stock, price, operating}

{customer, product, revenue}

We need to increase the volume of traffic on our network or our network will not generate the necessary profits to achieve positive cash flow from operations. Rapid technological changes can lead to further competition which could materially, adversely affect our business. We have incurred significant losses since inception, and expect to continue to incur losses in the future. Our ability to utilize our network may be severely limited if we are not able to maintain rights-of-way and permits, which would adversely affect revenues and cash flow. Significant capital expenditures will be required to maintain our network, and if we fail or are unable to adequately maintain our network, there could be a material adverse effect on our revenues and cash flow. Regulatory initiatives could put us at a competitive disadvantage or lower the rates that we are permitted to charge for our services, which would decrease our revenue and profitability. We rely, in part, on portions of competitors networks to carry communications signals. If we are not able to maintain these agreements, we may incur additional significant expenses in obtaining alternate agreements with other carriers to carry communications signals, which could adversely affect our profitability and cash flow. The SBC/AT T and Verizon/MCI mergers will create a tendency for the ILEC acquirer to favor their wholly- owned or fully integrated interexchange carrier. The opportunity to obtain access from competitive access providers to the ILECs has been significantly reduced as a result of the SBC/AT T and Verizon/MCI mergers. If we are not able to successfully introduce new products and services, our revenue and profitability could be adversely impacted. We are subject to risk due to a significant amount of revenue being derived from companies that are communications providers, Internet service providers and cable television companies. Our operations depend upon our ability to internally develop or acquire from third party suppliers, advanced and reliable network equipment on a timely basis. The inability to obtain needed equipment or services could materially adversely affect our revenue and profitability. Network failure and transmission delays and errors could expose us to potential liability or loss of customers which could materially adversely affect our revenue and profitability. Increased competition could adversely affect our revenue, profitability and cash flow. Potential regulation of Internet service providers in the United States could adversely affect our operations. Our growth is dependent upon the successful integration of recently acquired businesses. We will need additional capital to fund our existing and future operations. If we are unable to obtain additional capital, we may be required to reduce the scope of our planned network development, marketing and sales efforts, which would harm our sales and profitability. The unpredictability of our quarterly results may adversely affect the trading price of our common stock. We depend on key personnel to manage our business effectively. If we are unable to retain key personnel or hire and retain other qualified personnel, our sales and financial condition could be harmed.

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1060490--3/6/2006--BROADWING_CORP