Time Warner Cable is the second-largest cable operator in the U.S. and an industry leader in developing and launching innovative video, data and voice services.

In July 2006, as part of Time Warner Cable’s strategy to expand its cable footprint and improve the clustering of its cable systems, a subsidiary of Time Warner Cable, and Comcast Corporation completed their respective acquisitions of substantially all the cable systems of Adelphia Communications Corporation. Immediately after these acquisitions, Time Warner Cable exchanged certain cable systems with Comcast. Comcast’s interests in Time Warner Cable were also redeemed. These transactions resulted in a net increase of approximately 3.2 million basic video subscribers served by Time Warner Cable’s systems and resulted in it becoming the largest cable system operator in the two largest U.S. cities, New York and Los Angeles.

Bundling continues to be an important part of Time Warner Cable’s customer proposition. This strategy of marketing a combination of video, high-speed data and voice services has increased subscription revenues and reduced customer churn.

In 2007, Time Warner Cable continued to add new products and services that enhance the customer experience, including Digital Phone International OnePrice™, expanded HD programming and Road Runner Turbo™.

Time Warner Cable also continued the roll-out of popular services such as Quick Clips, which allows customers to easily access short-form video content from programmers on their TVs; PhotoShowTV On Demand, which allows customers with Road Runner and Digital Cable to upload their home videos and photos to a Time Warner Cable Video On Demand channel; and Start Over, which enables customers to restart TV shows already in progress. Start Over won the 2006 Emmy® Award for Outstanding Innovation and Achievement in Advanced Media Technology for Best Use of On Demand Technology over Private (Closed) Networks. As of September 30, 2007, Start Over had been launched in six Time Warner Cable divisions.

Among the new products rolled out in 2007 was Time Warner Cable Business Class Phone. This represents an important complement to Time Warner Cable's existing commercial data and video offerings. Time Warner Cable planned to offer Business Class Phone to small- and medium-sized businesses in most of its legacy footprint by the end of 2007.

Time Warner Cable plans to extend its strong momentum into 2008 and beyond by concentrating on execution in all of its systems and the continued roll out of new, innovative products and services.