Cox's Network Enhancements Enable New Services and Power Second Quarter Growth
Cox Delivers More High Definition Choices, Faster Internet Speeds and New Commercial Services
Atlanta, GA

ATLANTA -- Cox Communications today announced highlights from its second quarter; as expected, the company grew both Internet and telephone customers. On the video front, the second quarter was a record for the company in terms of high definition customer growth -- nearly fifty percent year-over-year growth. Also in year-over-year comparisons to the close of the second quarter 2007, Cox grew total residential customer relationships by greater than one percent, increased the total number of bundled customers by nearly seven percent and increased triple-play customers by nearly seventeen percent.

Cox is successfully utilizing its network assets to deliver residential and business triple play services across its footprint, a result of the company's early vision for bundling. Cox first began building fiber into its network in 1981. Ever since, customers have benefited from decades of Cox investments in its network infrastructure and products and services. These investments continue as the company is currently completing initial phases of an initiative dubbed EON (extendable optical network).

"We operate one of the best broadband networks in the country - a high-capacity network reliably delivering competitive services," said President Pat Esser. "The proof of our investments and network acumen is found in what we're delivering today - a complete bundle of video, Internet and telephone services which are trusted by residential and commercial customers in all of our markets. Our customers aren't waiting for network build-outs to experience the best communications and entertainment services available."

Cox's EON investments thus far include the upgrade of more than 60,000 miles of its network with more bandwidth, more fiber and the deployment of new technologies such as switched digital video. All are creating more capacity or allowing for more efficient use of capacity and the delivery of more advanced services:

  • More Capacity -- Most Cox systems are being upgraded to 1Ghz, allowing for more robust and more interactive services.
  • More High Definition -- Cox offers the highest quality, most relevant high definition content available. Cox offers both linear HD channels and HD On DEMAND, giving most customers access to more than 130 HD choices each time they pick up the remote. Research shows that HD customers choose Cox two-to-one over satellite television competitors.
  • More On DEMAND - On DEMAND is now available in all Cox markets. Cox offers more than 6,000 titles, with approximately seventy percent available at no extra charge for digital cable customers.
  • Faster Internet Speeds – Recent Internet speed increases and PowerBoostTM for both uploads and downloads help Cox’s Preferred and Premier Internet customers realize thirty-three percent faster download speeds and fifty percent faster upload speeds, allowing customers to get more out of what they’re into.
  • Still Faster Internet Tomorrow - Cox is testing cable's new DOCSIS 3.0 (Wideband) platform and is poised to deploy it in strategic markets. Wideband can deliver speeds as fast as 150 Mpbs.
  • Caller ID on the TV – Cox has successfully demonstrated Caller ID on the TV in one market and will be developing plans for rolling deployment, allowing Cox Digital Telephone/Cox Digital Cable-bundled customers to see who’s calling from the comfort of their couches.

"Competitive offers often confuse the market with inflated counts of HD channels carried, unsubstantiated quality claims and even bundles patched-together between two different providers, but consumers see beyond that and continue to vote with their checkbooks." said David Pugliese, senior vice president of Marketing. "Cox delivers the best and most reliable services and the most complete bundle. That's why we remain the number one video provider, the number one Internet service provider and the number one bundler of services in nearly all of our markets."

On the commercial front, Cox Business continued to pioneer cable-delivered services in the second quarter. Cox Business expanded its footprint and further advanced its market penetration. With nearly 250,000 business customers, Cox estimates that it's serving less than 20 percent of the businesses in its footprint - with significant upside potential to capture additional market share from competitors as well as new business growth. Cox currently provides nearly 570,000 phone lines to businesses, representing nearly twenty-three percent growth compared to the same quarter last year. Total revenues for Cox Business grew nearly eighteen percent over the same period. Highlights of Cox Business' quarter:

  • Top Honors from J.D. Power and Associates -- Cox again received top honors among all providers of small and midsize business data solutions in J.D. Power and Associates 2008 Major Provider Business Telecommunications StudySM.
  • MEF 14 Compliance -- Cox was designated MEF 14-compliant, a hallmark of carriers who deliver advanced Ethernet services. Ethernet services enable companies to cost-effectively create wide area networks that link multiple locations for increased productivity. Communication providers that attain MEF 14 certification have the ability to offer quality of service (QoS) for Ethernet services, backed by service level specifications.
  • A multi-year agreement with Nortel (NYSE/TSX: NT) - Cox is the first MSO to extend its business sales force by aligning with a leading telecom equipment solutions provider. The agreement enables Nortel representatives to design and sell voice, data and equipment solutions powered by Cox Business and gives Cox customers access to an enhanced bundle of services.
  • Faster Internet Speeds - Cox Business Internet speeds have been upgraded to provide speeds as high as 25 Mbps download and 5 Mbps upload. With PowerBoostTM now added to Cox Business Internet customers enjoy speeds as high as 30 Mbps.

"Cox's commitment to network excellence is enabling new, more advanced services and powering residential and commercial customer growth" said Esser. "We anticipate that commercial services, not including advertising, will deliver $1 billion in revenue in 2010. Cox Business is an extremely important part of our plans for growth and a terrific competitive tool. As our telecom competitors begin to unfold video services, we have a well-established and growing base of business customers. Cox's competitive gains in voice and data services will continue to make it difficult for our telco competitors to achieve ROI requirements on critical network upgrades."

About Cox Communications:

Cox Communications is a multi-service broadband communications and entertainment company with 6.2 million total residential and commercial customers. The third-largest cable television company in the United States, Cox offers an array of advanced digital video, high-speed Internet and telephony services over its own nationwide IP network. Cox Business is a full-service, facilities-based provider of communications solutions for commercial customers, providing high-speed Internet, voice and long distance services, as well as data and video transport services for small to large-sized businesses. Cox Media offers national and local cable advertising in traditional spot and new media formats, along with promotional opportunities and production services. Cox Communications wholly owns and operates the Travel Channel. More information about the services of Cox Communications, a wholly owned subsidiary of Cox Enterprises, is available at, y

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