Title: Mediacom Communications Corporation at Wachovia Securities Media & Communications Fixed Income Conference
Date: Wednesday, April 14, 2004
Time: 1:00 PM ET
Duration: 1 hour
Location: Waldorf AstoriaNew York, NY
Mark E. Stephan, Executive Vice President, CFO, and Treasurer
Developed network; now done.
Built for years to come – complete.
Company overview:
..Network upgrades complete
..Launching enhanced broadband products
..Redefining our market opportunity
..Dramatic improvement in unlevered FCF
Efficient platform to launch exciting new services to launch capital retursn
Northern network (passing 5 states) – 1,500,000 homes
Southern network – 400,000 homes
Both reach 70% of our homes,
Redefining market opportunity –
Going to completely recreate new revenue streams for us in voice and data
Going to diversify revenue diversification from video
2004 Operational Objectives
..Enhance video offerings
..Continue to invest in localism and customer care
..Strengthen HSD product line
..Expand commercial data business
..Launch voIP telephony
Pass and do not serve 1.2 million homes.
Going to compete through product differentiation.
…
This is the future. Voice over Internet. We think it is a tremendous tremendous opportunity. It is getting a lot of press in the newspaper. It’s getting a lot of publicity. It’s getting a lot of attention by the regulators. Policy makers. The lawmakers. I appreciate that they’re giving it a light touch regulatory framework.
Our objectives are clear. We are going to launch this in the 4th quarter of 2004. We’re going to do it in a way that’s cash flow accretive after capital spending.
We see customer premise equipment continuing to come down. And overall the economics are very attractive. We can scale our infrastructure quite nice as we introduce this product.
And truly it is the next big big opportunity. It looks like high speed data.
If nothing else if you could just look at this chart. We’re across the board in voice, video and data and no one else is in our market place.
The Future – VoIP Telephony
..VoIP next layer of revenue growth
..Complete the “triple play” bundle
..Cashflow accretive business model
..Favorable ROIC
..Positioning to launch service in Q4 2004
Summary:
..Leveraging broadband network
..Strengthening competitive video position
..Broadening data business
..Seizing VoIP opportunity
..Accelerating FCF growth
Q&A:
Need to take market share in phone.
Regulatory front and how it would affect and our rollout plans: don’t think things will move so quickly there. FCC is trying to roadblock any of the states that would impede voIP.
The partner?
We are in active discussions with potential partners. The upside is that it is some great choices and great structures. The downside is that it that you have to choose one.
It has been a difficult decision making process for us and we expect to get to it very very shortly.
I think our voIP model will be Time Warner’s model plus. Time Warner has Sprint MCI in their markets.
…
We will lean on [the partner] for additional services with the aim of transitioning those services back over to us over the term of the contract. It’s much like what we did with high speed in which we weren’t the experts in running the business. We learned quickly and now we are in firm control of the high speed data business.
We are back filling our voIP platform now with other pieces of the platform that need to be developed and tested and that’s being done.
…
Is the launch of voIP also in the budget. Yes.
…
We will feature the phone as primary. The decision on the battery pack has not been made, but we are leaning towards it. It is going to be a full set. It is going to be all the features that you can expect on a voIP platform: call waiting, call forwarding, caller i.d.
And there’s going to be additional features down the road, and we’re really seen some exciting developments as they begin to really begin to scratch the surface on products and services using the voice over IP platform. |
