Cable Academy, 2010

2

Agenda

Macro Trends & Performance, 2007 – 2009

Recent Initiatives

Q & A

3

Overall Growth, 2007 - 2009

12.4%11.2%

14.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Revenue Expense Cash Flow

Average Rate of Growth, 2007 - 2009

4

Revenue Growth By Product Line

Data 24%

Comm'l 13%

Other 7%

Video 31%

Phone24%

6%

19%

118%

17%

8%

Video Data Phone Comm'l Other

Average Growth Rate By Product,2007 - 2009

% of Total Revenue Growth, 2007 - 2009

5

Gross Margin Trends, 2006 - 2009

Video MarginVideo Margin Phone MarginPhone Margin

2009 2006

Data MarginData Margin

60.7%

57.4%

89.9% 91.2%

61.0%

67.4%

Overall Gross Margin flat at 65% despite Video Margin erosion

6

$3.95

$1.66

$4.49

$2.47

$4.07

$1.21

$3.58

$1.97$1.73

$3.44

$1.06

$3.86

$0.00

$3.00

$6.00

Technical Customer Support G&A Sales & Marketing

2007 2008 2009

Monthly Operating Costs Per RGU

RGUs include EBU, Digital, HSD and Phone units.

Avg. Reduction: (1.1%) (20%) (13%) (16%)

Focus on cost effectiveness has enabled operational scale as we grow

7

Our Formula

Improve our value through new product launches and enhancements Focus on proven and practical value-adds

Targeted acquisition and retention strategies Getting and keeping the ‘right’ customers

Continual focus on operational performance improvements Customer centered approaches deliver ‘win win’ cost

effectiveness

8

Recent Initiatives

New Product Launches:

New Bundle Suite & Offers

Targeted acquisition and retention:

Credit Scoring

Operational performance improvement

Reducing Advanced Services Talk Time

9

New Bundles: What We’ve Been Up To

Created new Digital Value service Response to a key product gap vs. Satellite Key building block for new bundles

Launched 3 Double Plays and 3 Triple Plays Good, Better, Best approach

Created Loyalty Pricing for bundles Allows existing customers to upgrade into bundles

10

Why We Made Changes

1. Competitive Response– Lacked sub $70 digital product– Pressure from Telco hybrid bundles

2. Consumer Requests– Desire to be “bundled”– Strong demand for Video & Net bundles

3. Financial Benefits– Bundled customers = lower churn– New bundles and promotions offer improved margins

11

New Bundle Suite Summary

Doubles

Select$74.99

Ideal$94.99

Ultimate $109.99

Triples Select$99.99

Ideal$119.99

Ultimate $134.99

+$20

+$15

Phone+$25

Phone+$25

Phone+$25

ShowtimeDVR

Digital Value ServicePreferred Internet

Digital Plus ServiceMax Internet

Digital Plus ServiceMax Internet

“Good” “Better” “Best”

12

Loyalty Pricing Overview

■ Same bundle contents and names, different promotional discounts:– Triple Play are $15 more– Double Plays are $5 more

■ Loyalty prices represent a $20-$25/mo savings off of retail

■ Simple eligibility rules for standard vs. loyalty prices:

■ Adding 1 RGU = loyalty prices; Adding 2 RGUs = standard prices

Select Triple Play $114.99

Ideal Triple Play$134.99

Ultimate Triple Play $149.99

Select Double Play $79.99

Ideal Double Play$99.99

Ultimate Double Play $114.99

13

Nearly 2,000 bundle sales within first month Double Play and Triple Play sales evenly split Strong sell-in of higher-end bundles Approx $10 Triple Play ARPU lift on new connects More than 15% increase in call center RGU upgrades Beginning to see improvements in close rates

Early Results Are Encouraging

Level Mix

Select 41%

Ideal 32%

Ultimate 27%

Blended ARPU $ 128.09

Level Mix

Select 33%

Ideal 38%

Ultimate 29%

Blended ARPU $ 142.95

Standard Triple Plays Loyalty Triple Plays

14

Credit Scoring: What We’ve Been Up To

Implemented Credit Scoring in July 2009

Use Equifax credit risk model integrated directly into CSG workflows Chose wireless credit model, not same as FICO

All new connects and restarts across all sales channels are scored

Current customers wishing to upgrade, transfers and seasonal restarts do not get scored

Customers must score 600 or higher to pass Failing customers must pay $100 deposit if they wish to

connect

15

Why We Made Changes:

40% of our new connects will disconnect before their 1 year anniversary

Half of those disconnects - 20% of the sample - were non-pays

Half of non-pays – or 10% of all new connects - disconnect within 1st 120 days

60% of Direct Sales new connects are gone within 12 months

Each non pay disconnect costs us over $500 in capital and operating investment losses! Bad debt, equipment losses, cost to acquire, install & disconnect

costs, etc.

16

Results: Disconnect Profile By Score Level

7.9%

2.1%

8.0%9.4%

7.8%

17.6%

0.00%

4.00%

8.00%

12.00%

16.00%

20.00%

Pass: 600+ Fail: 599 - 300 Fail: 299 - 0

Voluntary Non-Pay

% Disconnected after 90 – 120 days in service

% of Population 59% 15% 11%

17

Results: Key Metrics

Reduced monthly connect volume by 20 – 25%

Non Pay Churn down 30% Year over Year Some systems have seen 50% reductions

Bad debt declined from 1.2% of revenue in Q4 08 to .8% of revenue in Q4 09

Billing call volume dropped by over 40%

18

Reducing Advanced Services Talk Time

Overall Advanced Services (HSD & Phone) Avg Handle Time

7.20

7.24

7.03

7.17

7.07

6.86

7.01

6.97

6.61

6.39

6.27

6.34

5.80

6.14

6.14

6.26

6.36

6.22

6.20

6.25

6.51

5.99

6.22

4.75

5.25

5.75

6.25

6.75

7.25

7.75

May 08

Jun

08

Jul 08

Au

g 08

Sep

08

Oct 08

No

v 08

Dec 08

Jan 09

Feb

09

Mar 09

Ap

r 09

May 09

Jun

09

Jul 09

Au

g 09

Sep

09

Oct 09

No

v 09

Dec 09

Jan 10

Feb

10

Mar 10

Reduced Average Handle Time by approx. 40 sec / call

19

Q & A