| TWC will have a poor fiscal year 2009 TWC, which with the publishing unit of TW were the only parts of TW that made a profit last year, will have a much worse time this year. If the FCC and IRS approve the spinoff from the parent copany before the deadline of 31 March, TWC will have to pay TW almost $10M. This year, they'll see a significant chunk of their subscriber numbers fall as a majority of the subscriber base it inherited from the joint bankruptcy purchase (with Comcast) of Adelphia get transitioned to the newly created Windjammer Cable. With a drop in subscribers comes a drop in revenue. It they truly implement caps in markets where's there's even DSL competition, I think they'll see further drops in their subscriber numbers and revenue as people flee from this draconian, greedy pricing plan and their ability to attract new subscribers will be impeded. I also think they may see state regulators and state attorneys general beginning to scrutinize their fee structure if they don't make the caps more reasonable. (Most states have a wider variety of statutes available to protect consumers than the feds.) All-in-all, if they really go through with this, it doesn't present a very rosy outlook for their fiscal 2009 end-of-year report, especially as the country sinks further into a deep recession. |
