Time Warner Cable (TWC), formerly Time Warner Cable Communications, is an American national cable television company that operates in 27 states and has 31 operating divisions. For its first 20 years, TWC was controlled by Time Warner, Inc. However, it is no longer affiliated with Time Warner, Inc., having been spun out to shareholders in March 2009. TWC has been in Los Angeles for over 20 years. It successfully became approved as the exclusive cable carrier. As the industry expanded, TWC consolidated and grew to encompass more locations. In 2005, when Adelphia went bankrupt, Comcast and TWC took over its territories including Los Angeles. After the deal closed, TWC was able to get LA market through deal with Comcast and currently TWC manages the five counties in the greater Los Angeles area (Los Angeles County, Orange County, San Bernardino County, Riverside County and Ventura County).
Markets, products & customers
TWC sells a number of products including Cable TV, High Speed Internet (a.k.a. data), and Digital Home Phone (a.k.a. voice). They package their products together in what they call “bundles”. Although customers can choose to have a single product, TWC’s goal is to own the entire home (TV, Voice and Data), because this way they can maximize average revenue per customer (ARPU) and can also control all communication with the home which will keep competitors out. TWC’s Cable TV packages are built from a basic package called “Basic Cable” and a variety of tiers and other packages that customers can add on depending on their interests including: Variety Tier, Choice Tier, Sports Tier, Movie Tier, Español Tier, HD Tier, Premium Channels. Advanced services such as HD and DVR are also available, and all packages include free services like On Demand, Music Choice Channels, Parental Controls, and Interactive Channel Guide. Time Warner offers a few Internet packages including “Road Runner Basic” (up to 1.5 Mbps), “Road Runner Standard” (up to 10 Mbps) and “Road Runner Turbo with PowerBoost™” (up to 15 Mbps). The High Speed Internet product a customer chooses often depends on the speed they require for their Internet usage. Time Warner also provides customers with a few options for Digital Home Phone Service including “Unlimited California”, “Unlimited Nationwide”, and “International OnePrice®”. Again, depending on a customer’s needs, they can find a package that will work for them. These offerings fit with TWC’s strategy of providing the best products for the best value. Currently TWC is facing severe competition, mainly from Telcos, who originally provided telecommunications services such as telephone and data communications access, but are now offering TV products too. Most of the large Telcos, whatever their origins, are or were at one time nationalized or state-regulated monopolies. With the advent of cellular telephony, Telcos now include wireless carriers, or mobile network operators. Most Telcos now also function as internet service providers (ISPs), and the distinction between Telcos and ISP may disappear completely over time, as the current trend for supplier convergence in the industry continues. TWC’s other main competitors are satellite providers like DirecTV and Dish Network. These companies have been providing TV service for years, but are now partnering with other companies to provide data and telephone services to compete with Time Warner’s bundle.
* Convergence of service and device: Siemens Communications Inc. and TWC have successfully developed fully integrated fixed line, mobile and WiFi broadband technologies via Internet protocol multimedia subsystem (IMS) standards to deliver fixed mobile convergence (FMC). This innovation shows how consumers can now enjoy shared multimedia applications, entertainment features and communication sessions - including converged wired and wireless solutions. * Rapidly...