716133--2/26/2010--CINCINNATI_BELL

related topics

{debt, indebtedness, cash}

{system, service, information}

{operation, natural, condition}

{customer, product, revenue}

{tax, income, asset}

{property, intellectual, protect}

{cost, contract, operation}

{product, market, service}

{regulation, government, change}

{cost, operation, labor}

{cost, regulation, environmental}

{acquisition, growth, future}

{personnel, key, retain}

{loan, real, estate}

{competitive, industry, competition}

The Company s substantial debt could limit its ability to fund operations, expose it to interest rate volatility, limit its ability to raise additional capital and have a material adverse effect on its ability to fulfill its obligations and on its business and prospects generally. Uncertainty in the U.S. and world securities markets and adverse medical cost trends could cause the Company s pension and postretirement costs to increase. Adverse changes in the value of assets or obligations associated with the Company s employee benefit plans could negatively impact shareowners deficit and liquidity. The servicing of the Company s indebtedness requires a significant amount of cash, and its ability to generate cash depends on many factors beyond its control. The Company depends on the receipt of dividends or other intercompany transfers from its subsidiaries. The Company depends on its revolving credit facility to provide for its financing requirements in excess of amounts generated by operations. The credit facilities and other indebtedness impose significant restrictions on the Company. The Company s future cash flows could be adversely affected if it is unable to realize fully its deferred tax assets. The Company operates in highly competitive industries, and its customers may not continue to purchase services, which could result in reduced revenue and loss of market share. A few large customers account for a significant portion of the Company s revenues and accounts receivable. The loss or significant reduction in business from one or more of these large customers could cause operating revenues to decline significantly and have a materially adverse long-term impact on the Company s business. Maintaining the Company s networks and data centers requires significant capital expenditures, and its inability or failure to maintain its networks and data centers would have a material impact on its market share and ability to generate revenue. Maintenance of CBW s wireless network, growth in the wireless business, or the addition of new wireless products and services may require CBW to obtain additional spectrum and transmitting sites which may not be available or be available only on less than favorable terms. A failure of back-office information technology systems could adversely affect the Company s results of operations and financial condition. The Company depends on a number of third-party providers, and the loss of, or problems with, one or more of these providers may impede our growth or cause us to lose customers. The Company could be subject to increased operating costs, as well as claims, litigation or other potential liability, in connection with risks associated with internet security and system security. Data center business could be harmed by prolonged electrical power outages or shortages, increased costs of energy, or general lack of availability of electrical resources. The long sales cycle for data center services may materially affect the data center business and results of its operations. The Company s failure to meet performance standards under its agreements could result in customers terminating their relationships with the Company or customers being entitled to receive financial compensation, which could lead to reduced revenues and/or increased costs. The regulation of the Company s businesses by federal and state authorities may, among other things, place the Company at a competitive disadvantage, restrict its ability to price its products and services, and threaten its operating licenses. Future declines in the fair value of the Company s wireless licenses could result in future impairment charges. Failure to anticipate the need for and introduce new products and services or to compete with new technologies may compromise the Company s success in the telecommunications industry. Terrorist attacks and other acts of violence or war may affect the financial markets and the Company s business, financial condition, results of operations, and cash flows. A health pandemic could severely affect the Company s operations. The Company could incur significant costs resulting from complying with, or potential violations of, environmental, health, and human safety laws. The Company generates a substantial portion of its revenue by serving a limited geographic area. Third parties may claim that the Company is infringing upon their intellectual property, and the Company could suffer significant litigation or licensing expenses or be prevented from selling products. Third parties may infringe upon the Company s intellectual property, and the Company may expend significant resources enforcing its rights or suffer competitive injury. The loss of any of the senior management team or attrition among key sales associates could adversely affect the Company s business, financial condition, results of operation, and cash flows. If the Company fails to extend or renegotiate its collective bargaining agreements with its labor union when they expire, or if its unionized employees were to engage in a strike or other work stoppage, the Company s business and operating results could be materially harmed.

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716133--2/26/2010--CINCINNATI_BELL_INC