WPC5 2j ZBA(iHP LaserJet 3Si PCL in 244XN\  PXP1 Unknown  #XN\  PXP#Footer !  4 <DL!2X0DPage Number pbllt +'#_\  P QP# #A\  P P#Default Para''#A\  PP##XN\  PXP#ѫXN\  PXP(9 Z6Times New Roman RegularXXN\  PXP\  `&Times New RomanXXN\  PXP\  `&Times New RomanXXN\  PXP\  `&Times New RomanXXN\  PXP\  `&Times New RomanXA\  PP\  `&Times New RomanXN\  PXP\  `&Times New RomanXu\  PP\  `&Times New Roman h\  P P\  `&Times New Roman _\  P QP(\ Y`Symbol_\  P QP(\ Y`SymbolA\  P P\  `&Times New Roman_\  P QP(\ Y`Symbol_\  P QP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  P QP(\ Y`Symbol_\  P!QP(\ Y`Symbol h\  P" P\  `&Times New Roman _\  P#QP(\ Y`Symbol_\  P$QP(\ Y`Symbol_\  P%QP(\ Y`Symbol h\  P& P\  `&Times New Roman _\  P'QP(\ Y`Symbol_\  P(QP(\ Y`Symbol_\  P)QP(\ Y`Symbol h\  P* P\  `&Times New Roman _\  P+QP(\ Y`Symbol_\  P,QP(\ Y`Symbol_\  P-QP(\ Y`Symbol h\  P. P\  `&Times New Roman _\  P/QP(\ Y`Symbol_\  P0QP(\ Y`Symbol_\  P1QP(\ Y`Symbol h\  P2 P\  `&Times New Roman _\  P3QP(\ Y`Symbol_\  P4QP(\ Y`Symbol_\  P5QP(\ Y`Symbol h\  P6 P\  `&Times New Roman _\  P7QP(\ Y`Symbol_\  P8QP(\ Y`Symbol_\  P9QP(\ Y`Symbol h\  P: P\  `&Times New Roman _\  P;QP(\ Y`Symbol_\  P<QP(\ Y`Symbol_\  P=QP(\ Y`Symbol h\  P> P\  `&Times New Roman _\  P?QP(\ Y`Symbol_\  P@QP(\ Y`Symbol_\  PAQP(\ Y`Symbol h\  PB P\  `&Times New Roman _\  PCQP(\ Y`Symbol_\  PDQP(\ Y`Symbol_\  PEQP(\ Y`Symbol h\  PF P\  `&Times New Roman _\  PGQP(\ Y`Symbol_\  PHQP(\ Y`Symbol_\  PIQP(\ Y`Symbol h\  PJ P\  `&Times New Roman _\  PKQP(\ Y`Symbol_\  PLQP(\ Y`Symbol_\  PMQP(\ Y`Symbol h\  PN P\  `&Times New Roman _\  POQP(\ Y`Symbol_\  PPQP(\ Y`Symbol_\  PQQP(\ Y`Symbol h\  PR P\  `&Times New Roman _\  PSQP(\ Y`Symbol_\  PTQP(\ Y`Symbol_\  PUQP(\ Y`Symbol h\  PV P\  `&Times New Roman _\  PWQP(\ Y`Symbol_\  PXQP(\ Y`Symbol_\  PYQP(\ Y`Symbol h\  PZ P\  `&Times New Roman _\  P[QP(\ Y`Symbol_\  P\QP(\ Y`Symbol_\  P]QP(\ Y`Symbol h\  P^ P\  `&Times New Roman _\  P_QP(\ Y`Symbol_\  P`QP(\ Y`Symbol_\  PaQP(\ Y`Symbol h\  Pb P\  `&Times New Roman _\  PcQP(\ Y`Symbol_\  PdQP(\ Y`Symbol_\  PeQP(\ Y`Symbol h\  Pf P\  `&Times New Roman _\  PgQP(\ Y`Symbol_\  PhQP(\ Y`Symbol_\  PiQP(\ Y`Symbol h\  Pj P\  `&Times New Roman _\  PkQP(\ Y`Symbol_\  PlQP(\ Y`Symbol_\  PmQP(\ Y`Symbol h\  Pn P\  `&Times New Roman _\  PoQP(\ Y`Symbol_\  PpQP(\ Y`Symbol_\  PqQP(\ Y`Symbol h\  Pr P\  `&Times New Roman _\  PsQP(\ Y`Symbol_\  PtQP(\ Y`Symbol_\  PuQP(\ Y`Symbol h\  Pv P\  `&Times New Roman _\  PwQP(\ Y`Symbol_\  PxQP(\ Y`Symbol_\  PyQP(\ Y`Symbol h\  Pz P\  `&Times New Roman _\  P{QP(\ Y`Symbol_\  P|QP(\ Y`Symbol_\  P}QP(\ Y`Symbol h\  P~ P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  P QP(\ Y`Symbol h\  P  P\  `&Times New Roman _\  P QP(\ Y`Symbol_\  P QP(\ Y`Symbol_\  P QP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman _\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol_\  PQP(\ Y`Symbol h\  P P\  `&Times New Roman A\  PP(9 Z6Times New Roman RegularXN\  PXP(9 Z6Times New Roman RegularX2+3#|x  #XN\  PXP#ъ X +  #XN\  PXP#%"dd#XN\  PXP##A\  PP#Footer ! Page Number #Page Number #%#XN\  PXP#+#u\  PP# COX COMMUNICATIONS NEW DIGITAL SERVICES # h\  P P#(amended)  COX IS IMPLEMENTING THE FULL SERVICE NETWORK CONCEPT  `  ` <DL!`  #_\  P QP#pbllt #_\  P QP#  pbllt #_\  P QP## h\  P P#In less than 2 years since the 96 Telecom Act Cox has received certificates of convenience and necessity to offer full range of telephony services in all 9 of its clusters.   `    <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#San Diego, Orange County, Phoenix, Omaha, Oklahoma City, New Orleans, Florida Panhandle, Hampton Roads & New England. Clusters serve 82% of Cox customer base.   `  ` <DL!` #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Cox has stateapproved interconnection agreements with   `    <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#PacTel CA  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#US West AZ and Nebr  #_\  PQP#pbllt #_\  P QP#  pbllt #_\  P!QP## h\  P" P#Bell Atlantic VA  #_\  P#QP#pbllt #_\  P$QP#  pbllt #_\  P%QP## h\  P& P#SWB OK  #_\  P'QP#pbllt #_\  P(QP#  pbllt #_\  P)QP## h\  P* P#Process still underway with GTE, SNET, and BellSouth in VA, New England, and LA, respectively   `  ` <DL!` #_\  P+QP#pbllt #_\  P,QP#  pbllt #_\  P-QP## h\  P. P#This process is time consuming and litigious   `    <DL! #_\  P/QP#pbllt #_\  P0QP#  pbllt #_\  P1QP## h\  P2 P#Lawsuits challenging Coxs state arbitrated interconnection agreements are pending in Nebraska, Arizona, and Virginia  #_\  P3QP#pbllt #_\  P4QP#  pbllt #_\  P5QP## h\  P6 P#Cox had to get a restraining order to stop the illegal blocking of its calls in California by GTE   `  ` <DL!` #_\  P7QP#pbllt #_\  P8QP#  pbllt #_\  P9QP## h\  P: P#Nevertheless, Coxs advantage is that regulatory uncertainty and ILEC resistance to local competition is inversely proportional to the amount of infrastructure a CLEC can bring to the party. Cox is not purchasing UNEs.  #_\  P;QP#pbllt #_\  P<QP#  pbllt #_\  P=QP## h\  P> P#Coxs redundant ring, hybrid fiber coaxial networks are the most advanced in the industry. Our network reliability exceeds Bellcore standards.   `    <DL! #_\  P?QP#pbllt #_\  P@QP#  pbllt #_\  PAQP## h\  PB P#Cox already has operational switches in 7 of its nine clusters  #_\  PCQP#pbllt #_\  PDQP#  pbllt #_\  PEQP## h\  PF P#Cox has deployed a systemwide fully integrated information technology platform that supports low cost billing, collection, database management and all other aspects of customer care   4 <DL! A FULL SERVICE NETWORK IS AN EXPENSIVE PROPOSITION  `  ` <DL!`  #_\  PGQP#pbllt #_\  PHQP#  pbllt #_\  PIQP## h\  PJ P#Capital expenditures: $3.5 billion to date; more than $4 billion at end of day  #_\  PKQP#pbllt #_\  PLQP#  pbllt #_\  PMQP## h\  PN P#Business model   `    <DL! #_\  POQP#pbllt #_\  PPQP#  pbllt #_\  PQQP## h\  PR P#defend core business (incremental rev. least)  #_\  PSQP#pbllt #_\  PTQP#  pbllt #_\  PUQP## h\  PV P#expand into highspeed data (incremental rev. best)  #_\  PWQP#pbllt #_\  PXQP#  pbllt #_\  PYQP## h\  PZ P#expand into full range of telecom services (incremental rev. mid range)   4 <DL!  `  ` <DL!`  #_\  P[QP#pbllt #_\  P\QP#  pbllt #_\  P]QP## h\  P^ P#Need for clustering: 250,000 subs min critical mass; 500,000+ preferable  #_\  P_QP#pbllt #_\  P`QP#  pbllt #_\  PaQP## h\  Pb P#Did Times Mirror deal in order to cluster  #_\  PcQP#pbllt #_\  PdQP#  pbllt #_\  PeQP## h\  Pf P#At the end of last year (97), out of 3.3 million customer base:   `    <DL! #_\  PgQP#pbllt #_\  PhQP#  pbllt #_\  PiQP## h\  Pj P#more than 1.5 million were data ready  #_\  PkQP#pbllt #_\  PlQP#  pbllt #_\  PmQP## h\  Pn P#more than .25 million were telephonyready   `  ` <DL!` #_\  PoQP#pbllt #_\  PpQP#  pbllt #_\  PqQP## h\  Pr P#by end of this year (98), majority of clusters will have   `    <DL! #_\  PsQP#pbllt #_\  PtQP#  pbllt #_\  PuQP## h\  Pv P#digital multichannel video  #_\  PwQP#pbllt #_\  PxQP#  pbllt #_\  PyQP## h\  Pz P#digital telephony  #_\  P{QP#pbllt #_\  P|QP#  pbllt #_\  P}QP## h\  P~ P#digital highspeed data   `  ` <DL!` #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Sometime in 1999: comprehensive service in all 9 clusters  `  4 <DL!Ќ WHAT DO THESE SERVICES LOOK LIKE FROM A CONSUMERS STANDPOINT?   4 <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Digital TV      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#200+ channels inc. 40 CDquality music channels  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#25 new all digital program networks  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#interactive program guide and headsup display    <DL!#_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#whats on (even during ads); when did it start; and whats next  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#search programming by category  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#headsup reminders of preselected, upcoming programs  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#elective childrens program blocking device; can be based on ratings and/or content      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P# 40+ channels of enhanced pay per view (up to 10 movies starting every 30 min. in prime time); $3.95; never out of stock and never a charge for a late return  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Cost for all of the above: $5.95 more/month    <DL!#_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#$10.95 more/month includes two additional     <DL!  digital network packages   4 <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Digital Telephony      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#first residential line $9.99/mo. (11% under ILEC rate)    <DL!#_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#second line $4.99/mo. (56% under ILEC rate)      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#enhanced services: voice mail, caller ID, call forwarding, call waiting, etc. @ approx. 10% 20% discount from ILEC  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#free installation $31 savings during initial rollout, (refund of first month excluding L.D. if not satisfied)  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#LD interstate: 10 cents/min 7 x 24 (7 days a week, 24 hrs a day)    <DL!#_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#LD intrastate: 5 cents/min  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#intrazonal calls free (compare in zone 3 in CA, ILEC charges up to 8 cents/min.)   4 <DL! X    4 <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Digital high speed data      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#2.5 to 6 megabit service (2500 to 6000 Kb/sec.)    <DL!#_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#with modem purchase $29.95/month  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#with modem lease $44.95/month  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#without cable service $59.95/month  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#installation charge $75 to $100      <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#a directly competitive DSL telco service at 192 Kb/sec costs about $59.95/month 320 Kb/sec = $84.95/month 704 Kb/sec = $144.95/month and $514 to install  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Cox installation time well under two hours; approaching target of 11/2 hrs  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#60 teams currently working  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#service includes @Home distributed network   4 <DL! CUSTOMER REACTION IS WILDLY BETTER THAN COX EXPECTED  `  ` <DL!`  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Penetration rate in telephony is 17% where service has been available for two or more months.  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Cox has 17K data customers  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Current incremental cost of equipment is high but we expect it to fall:   `    <DL! #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#modem $350  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  P QP## h\  P  P#telephony $350  #_\  P QP#pbllt #_\  P QP#  pbllt #_\  P QP## h\  P P#digital TV $450   `  ` <DL!` #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Churn rate in highspeed data is virtually zero and were installing service as fast as we can train service teams  #_\  PQP#pbllt #_\  PQP#  pbllt #_\  PQP## h\  P P#Additional revenue per customer for all three new services is about $130/home/month  `  4 <DL!