716133--3/15/2006--CINCINNATI_BELL

related topics

{debt, indebtedness, cash}

{property, intellectual, protect}

{product, market, service}

{cost, operation, labor}

{capital, credit, financial}

{tax, income, asset}

{acquisition, growth, future}

{operation, natural, condition}

{financial, litigation, operation}

{cost, regulation, environmental}

{cost, contract, operation}

{regulation, government, change}

{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. 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 upon its credit facilities 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 a highly competitive industry and its customers may not continue to purchase services, which could result in reduced revenue and loss of market share. Maintaining the Company s networks requires significant capital expenditures and its inability or failure to maintain its networks 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, which may not be available or be available only on less than favorable terms. 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. Failure to anticipate the needs 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. The Company could incur significant costs resulting from complying with, or potential violations of, environmental, health, and human safety laws. The Company could incur significant costs as a result of a number of putative class action and derivative lawsuits that were filed against the Company. The Company generates substantially all of its revenue by serving a limited geographic area. Third parties may claim that the Company is infringing their intellectual property, and the Company could suffer significant litigation or licensing expenses or be prevented from selling products. Third parties may infringe the Company s intellectual property, and the Company may expend significant resources enforcing its rights or suffer competitive injury. Uncertainty in the U.S. securities markets and adverse medical cost trends could cause the Company s pension and postretirement costs to increase. 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--3/15/2006--CINCINNATI_BELL_INC