NEW PRODUCTS AND SERVICES
We offer our customers a full array of traditional cable television
services and programming and we have begun to offer new and advanced high
bandwidth services such as high-speed Internet access. We plan to continually
enhance and upgrade these services, including adding new programming and other
telecommunications services, and will continue to position cable television as
an essential service.
A variety of emerging technologies and the rapid growth of Internet
usage have presented us with substantial opportunities to provide new or
expanded products and services to our customers and to expand our sources of
revenue. The desire for such new technologies and the use of the Internet by
businesses in particular have triggered a significant increase in our market
penetration. As a result, we are in the process of introducing a variety of new
or expanded products and services beyond the traditional offerings of analog
television programming for the benefit of both our residential and commercial
customers. These new products and services in the following:
- Digital television and its related enhancements;
- High-speed Internet access via cable modems;
- Internet access through television access service; and
- Dial-up Internet access.
Information is not presented for September 30, 1998 as this information is not
meaningful due to the start-up nature of the operations of these new products
and services at September 30, 1998.
SEPTEMBER 30, JUNE 30,
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Homes Passed 897,578 728,090
Digital Customers 28,615 10,929
Digital Penetration 3.2% 1.5%
CABLE MODEM-BASED INTERNET ACCESS
Homes Passed 1,932,487 1,730,978
Commercial Customers 252 162
Residential Customers 19,175 13,467
Penetration 1.0% 0.8%
TV-BASED INTERNET ACCESS
Homes Passed 460,277 414,695
Customers 6,196 4,296
Penetration 1.3% 1.0%
DIAL-UP INTERNET ACCESS
Homes Passed 656,534 357,286
Customers 2,476 2,107
Penetration 0.4% 0.6%
ACCOUNTING STANDARD NOT YET IMPLEMENTED
SFAS No. 137 "Accounting for Derivative Instruments and Hedging
Activities--Deferral of the Effective Date of FASB Statement No. 133--An
Amendment of FASB Statement No. 133" has delayed the effective date of SFAS No.
133 to fiscal years beginning after June 15, 2000. We have not yet quantified
the impact of adopting SFAS No. 133 on our consolidated financial statements nor
have we determined the timing or method of our adoption of SFAS No. 133.
However, SFAS No. 133 could increase volatility in earnings (losses).