HDTV High Definition Television

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HDTV(High Definition Television)

• Presentation to CCSA MembersSeptember 25, 2003

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COMPANY OVERVIEW
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COMPORIUM COMMUNICATIONS

• Parent Company - Over 100 Years Old
• Headquartered in Rock Hill, SC
• Serves York and Lancaster Counties
• Over 120,000 Access Lines
• Over 50,000 Basic Cable Subscribers
• Provides
• Local Telephone
• Long Distance
• Wireless
• Cable TV
• Data
• Internet
• Security

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COMPORIUM GROUP COMPANIES

• Comporium Data Services Provides software and
  billing services to the cable and
  telecommunications industries
• Comporium Operator Services Offers wholesale
  directory assistance, operator services and
  answering/call center services
• Comporium Publishing Provides directory
  publishing, web site design and hosting and
  advertising agency services
• Comporium Telecom Performs underground
  utilities installation and Structured Wiring

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COMPORIUM MISSION STATEMENT
Making Life Easier
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HDTV BUSINESS CASE
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REASONING FOR HDTV SERVICES OUR THOUGHT PROCESS

• Had achieved 30 Digital penetration to Basic
• Constantly looking for services to enhance our
  Digital offering
• Want our customers to perceive Comporium as
  technologically advanced
• Time Warner was aggressively advertising their
  HDTV services in the Charlotte DMA
• HD sets were dropping in price
• We could offer local network HDTV while the Dish
  companies could not

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HDTV INITIAL INVESTMENTMATERIAL COSTS BREAKDOWN
FOR 5 CHANNELS
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HDTV INITIAL INVESTMENTHDTV DIGITAL SET-TOP COSTS
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HDTV PRICING AND PACKAGING

• Pricing
• 5.00 / month add-on to Digital Basic
• HDTV Digital Pack 16.95 (Digital Basic 11.95
  and HDTV 5.00) Includes
• 4 HDTV Channels (ESPNHD, CBSHD, NBCHD and ABCHD
  Discovery HD Theater coming Oct. 1)
• 30 Diginets
• 45 Music Choice Channels
• Pioneer IPG
• 15 Pay-Per-View Channels
• Free delivery and install of HD set-top receiver
• HD set-top receiver
• Component video/audio cords
• Also, HBOHD free with Digital HBO subscription

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HDTV INITIAL INVESTMENTPROMOTIONAL COSTS
BREAKDOWN
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MARKETINGTACTICS AND MATERIALS

• Tactics

• Materials

• Coming Soon bill insert

• Press conference and demo

• Letter to all Digital Basic customers

• Newspaper ads

• Cross-channel spots

• HDTV displays in all seven Sales Offices

• ESPNHD Rolling Billboard on 20 company vehicles

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HDTV SUBSCRIBER GROWTHJanuary 2003 - Present
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PAYBACK ANALYSIS
Gross Margin (28/month x 320 HD subs)
8,960 Depreciation Material (39,820/ 60
months) (663) HDTV Set-top (112,000/ 60
months) (1,866) Net Monthly
Profit 6,431 Payback Period 7.5
Months (48,600 Promotional Costs / 6,431 Net
Profit)
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BIG PICTURE
You have two options
Launch HDTV Services Money in YOUR Pocket
Dont Launch HDTV Services Money in THEIR
Pocket
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THANK YOU!