Note : I always use true proportions rather than percents , and in ASCII , the APL uses the percent symbol '%' for division .
A most exciting company . The recent merger of BellSouth and Nynex gives them 36 million lines on the east coast ; TCI has cable passing 35 million homes from coast to coast . Cable modems ( asymetric ) currently cost about $350 . ( I expect a much higher number of subscribers than anticipated will want fast uplinks . )
An additional reason for my interest in getting to the TCI meeting is that their Principal Financial Officer , Barney Schotters , was Supply Officer ( the position most responsible for enforcement of the shine of our shoes and gleam of our buckles ) for our Battery , Batallion , and finally , the entire Regiment 30 years ago in highschool at Culver Military Academy on Lake Maxinkuckee Indiana .
[ This all suffers from my not following TCI on a regular basis , nor researching them ( more than looking @ their price history ) before hand ] ============================: WED.APR,960417 :============================ @ GrandHyatt | Unusual : 1 maybe 2 other Notebook computers in use |8:14| BrendanClouston VP COO | plan to grow by mining assets : hi-speed net into 35M homes . becoming wrld class integrated delivery system . Pump is primed , have money to do . Cure is growth | .12 cash flow take over last 6 mo . 400E3 new custs % yr | 400E3 % 35E6 |>| 0.01 PrimeStar , sumitrak software - like AA sabre - is deployed [ incedentally , Sabre is one of the great APL sucess storys ] Dad ref : Kipling : If you can .. | NYTimes : Can TCI leader walk his talk - John was in argentina w Fred - has flu . Bringing it all home to cust : Teknology - consumers want choice & simplicity . do want pakages | Finaly Govt admitted cannot keep up w Tek . 1st rule : Bandwidth is not a commodity . 2nd | Products & pakages sell | implys partnering . 3 | Service - execution - maintains Must be local but w global scale . massive door to door effort to get stuff into homes | took 3.5 min to boot up own computer other day . passing breakeven for digital programmers . lowered by 2%3 . Driven by creators ~ caretakers . What is it ? Shareholder value - drive rev growth - fuels new prod launches | mine value : hidden assets Bandwidth is heart : 175 - 200 % home to give 75MB modems 300 - 350 : model returns 4.5%1 cash to invested ROI Gov in Hartford CT - supplying foen . 3 of 5 top customer rankings in CT : ~ locked into Sprint to tightly to Battle @ FCC is what is discount . BruceRavinol - satalite doesnt work - aimed to blast software Product : Digitally compressed video | w show @ NCTA does ~ require tot rebuild | 500 $ % home for Sat connect | RBOC 1000 | can equip avg to get cost down to ~ 1.5 $ % mo % cust . Highspeed data is huge mkt . Ferarris stuk in grage when home . internet . Integrated Delivery : Hidden Assets : Core National Footprint : Liberty doing well . Tinta ? discuss w ChuckWillis : power of terestrial nets . Have to have ownership : |8:45| GaryHoward : worked w UnitedArtistCable - now PrimeStar : NYTimes last wk : abt Sat TV : TCI Sat Entertainment - been acqumulating substantial retail Sat assets | old C band mature - Netlink gro 2 x industr merger w SuperStar | PrimeStar : 6 x increase since 94 - 1.2 .600 total vs TCI customers | have enormous head start . outsellling DirectTV 2 x in areas where compete | expect tot mkt ~ 10 - 15 E6 custs | 27-36 " vs 18 " dish . EchoStar : 8000 tot custs . 2B $ trading 250K mkt cap % subscirber . Primestar has brand name : nothing to buy - ~ 1$%day . / scale economics 700 sales force - Natnl sales ctr : improved call volume handling : 5 x reduced wait time & abandonment %9 | traned telemarketers .15 .2 closes . continuous 24hr service contact scheduling . Unique partnering - w RadioShack , Bose | w rural computer Cos . expect 10- 15 M custs by 2000 . CompleteRetailSat Focus | HiPower Satellite future Integrated delivery sys IS valuable . Digital TV is wanted by cust . |9:4| Intro BruceRavenel : Internet Svc |9:8|: '76 w Intel , 8086 design team , one of 6%12 | Knew would be huge , didnt know wat huge meant : meant 100B$ % yr mkt | TCI posed w broadband connections to interet : twice in life @ right place & time . JohnDoor KlinerPerkins : investor | Started Internet co yr ago : @Home : need brightest team . MiloDean ? net archetect | TCI Interactive : content provider : @Home Busn model : Milo : need to build Wrlds Largest backbone - 30-50M local community content . MSO .6 .4 split branded browser by Netscape . | plan to ride crest but ~ try to control Inet wave . Personalized Multimedia Experience . Avg home IN user : 18 + 10 % mo including 2nd foen . ISDN : 60 - 180 | 6Mhz - 30Mb%s for $35 flat | .1 penetration Work@Home Internet@Work , Intrane@work , @School . launching in 3 mkts . w have backbone next Q . |9:22| JerryGaines : Telefony : wireless -wireless wireless catagory is exploding | Harvard , ex USWest More excited this yr than last . Then showed plans ; now | O&W Wright spent 3 yrs -><- Ohio KittyHawk public trial - then 3 yrs in OH perfecting in barn . They started in `90 so TCI in 6th yr : w have prod sometime this yr Opportunity : Wireless w SprintSpecturm 17B$ , WiredBusn : Telenet 35B$ , wired Residential 45B$ | Stratigy : Brand , pakaging , teknical superiority in quality & .25 cost advantage . Natnl Footprint . Lines of Busn : The tek does work : cable foen doing 17K calls % day , dramatically better svs . why enter wireless ? own licenses for .75 of custs in country . got cheap . WDC > 60K customers in < 5 mo . most new customers . 1st provider full digital svc : can just buy at store & call in to activate . [ neat ] Pakagng w Sprint long distance , getting 50K cust % mo . Teleport @ $200mi in revs | providing real choice . Wired residential foen svc : .5 .5 JVs . Residential in ArlingtonHeights IL , CT , & SF Bay area , 1E6 homes passed Expand Teleport to 8 mkts | launch SprintSpectrum PCS in 20 to 25 mkts . Ex GE w Dr Jack Welch : on Factory automation . no one wants pkgs - ' Automate emegrate or evaporate ' |9:41| CamilleJayne : Digital cable TV market building : Launching : Separate men from ù+ in focus grps . intgrated delivery system . ' we ain`t sellin soap ' : from VidalSasson --> America`s Bank . brought out 1st pkgd financial prods . Amerimarts . ( yes it is soap ) Really a science to launch new prouct . Digital TV --> more choice , easier surfing , for customer retention need : ' I love this product ' 96Q4 Launch : Dig Svc onscreen guid : can browse while continuing to watch same prog . Impulse purchas PPV right from remote . adding 80 80 + 40 80 |>| 120 160 | f 40 channels PPV , 40 music . Set top box : | Equip avg allows very nominal cost | beta test Jun1 , allows multiple boxes in 1 house . already have lot of channel capacity in place w 7 x compression | atitudinal segmentation study of why people watch TV | VegOut <-> Interact | Sharing <-> Personal | Escape <-> Learning | indulgence <-> control | launch Hartford CT Oct30 : 220K homes passed . |9:59| Brandon : 2nd generation box : simplicity of integrating box w VCR & VDisk compression | taking compression from 7 x to 25 x in future ( works now ) | Internet brands are being created now . Break |10:2| |10:17| Brandon : How do you do acnt support for 30M homes . FredB? WW dont need IXC investment | return on investment | Head in sky ? 10-15M BarryMarshell fast hard & focusd | has & will have best op margins in indus 100M foen calls % yr ||10:23| : Integrated delivry : what core cable doing today : 226K miles 25K people , 12 M cust , 13k head ends | machine 3-4 100k (dis)conect orders each mo (?) . Core reliable . expect return to traditional .xx growth . JerryGaines . Past regulatory mess | 75K new customers so far this yr . same as last several yrs | continue cost controled | have more cable systems than anyone else | Major Markets w have 5M new customers , 9000 new employees , thru acqs . `96 Rate change up in June , ~ nikle & dime . w be comparable to other MSOs Secure , technical integrety , signal qual | .3 up to .5 sales of packges 100k new Star , 1E6 Encore custs | 4hr -> 2 hr window in 2 days timelyness | 4 regional warehouses - digital boxes , modem etc , instead of 600 locs . cost control - w b lowest if ~ already . | Creating new Bandwidth . |10:38| Dr SadieDecker : ex MartinMarietta | launched rokets | IntegrateDeliv Sys : backoffice . be able to sell & support anything . Fiber @ light speed BroadBand : Metro areas : Huge rings of unlit fire | Transport layer : SummitTrak Internal Delivery Sys Data net : 16 nodes . connected to Japan & England . all new in last 3 yrs . largest data net in insdustry . file 25 patents . answer any call anywher in US for load balancing , customer-centic DB . would be RokStar ME MoonUnit MTV , Thor CA King of hill people , thin , 911 ; need to see everything abt Sadie acnt in denver . NASA truck dispatch thru Sat . Gary CFO acnting - need to recreate GenLedg sys . Live mkt res & ( huge ) data warehouse w customer privacy | Wil use SUMMITrak to manage roll out of dig TV | MCI friends & family to 6 mo to build . they could do overnight Prods to Mkt FAST . RBOC have Cobal Perfumed Pigs . | they have integrated the best of Silicon Val | GPS dispatch out of Greely w NASA tek | |10:54| BarbaraMowry comp Systs & Software : Ex Airlines `78 : Customer Satisfaction : going from 1 to many prods . 10M spare parts flying in formation . Ran Milage+ for 9 yrs ( 82 bill versions ) . expected to die in 6mo . Consulted on integration . New Operating Model : how to be personal w 20M customers sys will be standard for industry . have 5 story building soon to be 60 . Based on customer rather than Co internal structur . Newspaper picture request . Powerful Brand deliverd thru another Brand . 100M foen calls --> 6-8 ctrs ( virtually 1 ) internal lok box op | Consistant svc qual . 1 stop shopping & bill . timely svc | w b able to review & pay bill thru set . can offer qual svc to ' hi milage ' subset of custs . 2 ctrs denver June ( HQ ) , Boise Dec | Nordstrom : training ( by parents ) | customer designed performance metriks . |11:11| BrandonClousten : Cost ? all on asset side of Bal Sheet . sv hr % tek % day | |11:14| LarryRomrell : Tek Ventures : Mission : devel futur . most what saw today was incubated in his grp . aliances w startups . NetScape investment . New Teks : HeadIntoTheSky /NDTC | @Home idea only 1.5 yrs old . continue working Cable modem interoperability Investments United Video UVSG ( online guide ) / NetScape LightSpan . Academic Systs / Virtual i-o |11:20| TonyCoelho : EduTraininCommun w /TCI : 18k schools conneted . 40M$ invest since `89 | 500 hrs commercial free edu prog % mo . Corp training | will offer internatnl . Software pkgs : ' Xchage ' , ' what on earth ' | get along w Edu Assocs . wrk w Discovery & TLC | Goal : one stop shopping for administrator | w N. Arizona U. 11 of top 25 edu titles w partners . 1) wire & telephone in each class rm | access thru cable & PrimeStar . 10k dishes free | 300 hrs Educator training | nassp , nea , nsba , other endorsements ETC J.C.Sparkman training ctr | Live from Denver : JohnKlugan : 50 mems western | 350 educator % mo visit | inside Natnl Dig TV Ctr . 7 foot ball fields . 6-10 channels in 6Mhz | Traning & support for ETC prod | handson Teacher traning | empower students to take on own edu | Bob Superintendent of E long island schools : TCI cable in classrm mag | next training facility in WDC open in June . West coast next yr . Investment was made 6 yrs ago . Hard for competion to break into relationships . Edu intnl div later this yr in 7 countrys ||11:39| Whats Next ? Media Box testing switching fabrics to support . Vision & Trak Record of Success |11:40| Brendan : assume some understanding of Corp Structure . TINTA , Libery Traking stock | fat 10k | Why TCI w grow ? cause . is now . last yr growth | .19 .13 rev cashflow | core > .12 | TimeWarner & they took abt 2.5$ increase | > .5 of TCI w b deregulated by next yr | reg w b going away | unit growth : 450K last , > 75K sofar this | Sat w grow to > than 1B$ invested | Balance | leverage 6%1 @ EoY , coming down . The pumps are primed | internet just needs modems . PC mfgrs w put ' Cable Modem Inside on boxes ' | Opportunity never brighter | creation of WrldClas OpCo . |11:53| ?s | FredViara | Pomeroy CredLyonais ? 30Mbit Moto , Lan City 10Mb , Node 1200 home - subdivided into 4 300 home loads | can support @ .1 penetration | contnention | @home MSO sign ups , ? in conversations w usual suspect | modem avail ? Moto w hav > 100k % mo available . dont expect bottlenek | when launc h ? à in sunniyvale , pay cust in SF by E o Summer HiSpeed end to end | Hi Powered DBS ? stratigy : medium power w GE sat for 4 - 12 yr w hier wattage for 27" dishes . HiPow long term asset . 11 slots aligned w echostar , see way to migrate to Telesat | opportunity in 10s of M price for slots hi . now - Rupert would pay more | Tinta Multi B$ asset , Japan cash flow ? Fred : way ahead of proj : 1.3M homes on way to 3 by eoy under franchise . Sumitomo | ATT Returns SummiTrak , Education ? Brandon : ATT big customer , Teleport hard to compete w . makes lot of noise in WDC to use cable local pipes . Sadie : spent much less than RBOCs would like to think - small low 10s Mils , Tony : ETC Big industry , Turnkey in Muskogee OK , also CorpTrain : CareerTrak . few mo ago brought in intnl ptnrs , Japan wants presentation to their Govt | .42 below 450Mhz , when move to 750Mhz ; any deconsolidations ? Barry : Bandwidth not real heavy limitation - rural areas may just go all digital . most major mkts upgrading by node . most stratigic mkts 1st . 3 pieces : large chunk of co > 450 | Fixed Wireless moving into rural mkt | what portion of plant w be data ready when ? 2M homes ready , 3 major mkts 1M homes this fall , most of Co by next yr | Liberty ? value of Stars 3.5 - 4 M subscirbers . great family movie prods . already paid for . Board determines fairness : Dauber : look out for Liberty shareholders . may move netlink | what might cause complete split of Lib ? traking stok . could look at tax free spinoff . Govt has interest , but seems sanguine abt Turner go is TimeWarner | Exclusive programming ? Liberty to create & sell to everyone | SprintSpec integration ? expect to major channel , cross promotions | | wireline switching cost ? T1 contact into cheaper switch - save 100 % swithc , cost abt ~ 150 % cust , investments in Teleport already done . | Dig 2nd boxes ? 3-400 $ % . analog dig hybrid into home . > 1.75 | Internet : asymetrical obselesecnce ? most consumer no hi vol web site from home , vast majority of employers satisfied w asymetric , no cad cam @ home | Sat Price ? more w have to move to PrimeStar model of supplying substantial eqip in home . but also enhanced pkg | Cable prices down , now going up , subscriber resistance ? dont expect neg impact on growth . Barry : most of neg publicity artificially generated , ~ from custs . w b less than before | GSM v CDMA ? only GSM equ , CDMA works & is available . bigest q : patching w analog bak office . hand sets w be afailable in vol needed for forcasts . WDC may have underpriced @ 150 - 200 $ in mkt where comp giving away | modem std ? 1st guy MPEG2 is std . GI box | Acq ? oportunistic . dont need to buy territory , dont use stock if ~ mk sense | What w TCI look like in 3 yrs ? TCI & ptnrs w b largest local foen co . Bs & Bs $ | Internet : low speed over , hi speed under hyped Sat Dig TV - w sweep TCI quickly . breakevens much lower . w have transformed itself . increase moral & everything | Govt w object hoarding too much cash like BillGates | Fred : incredible mngt team permission to believe | last q : ETC cap intensive , when payback ? ~ running new fiber just for schools w/o contract . X00 $ % chair . keeping equip on TCI books . 8 yr leas | 265 $ % yr % pupil being paid up front . what has been missing is training the teacher . |12:54| Lunch : Xtal Fountan Rest |12:55| [ waited to eat @ Barney`s table : Wow , what complex problems they deal with . Very competent Telecom industry analysts @ table . Sadie`s SummitTrak done for abt 30E6 $ . Created one vertical slis of company ( one node ) then replicate as need more capacity | Barney called off to press conference |18,13:58 ] ============================ø THU.APR,960418 ø============================ The ( > 3E6 byte ) 10k choked my Netscape last night . Looked @ 655KB , 170p 10q;951114 . Enormously complex company intertwined w every player in the information business . One rather worrysome comparison between the recently merged RBOCs and TCI is Revenue % employee NYN | 13306.6 % 65399 |>| 0.2 BEL | 13791.40 % 72300 |>| 0.19 TCOMA | 4936 % 32000 |>| 0.15
TCI`s homepage http://www.tcinc.com/ is not very informative about the company itself .
\ Tele Communications Inc ; 303-267-5500 ; 5619 DTC Parkway/Denver CO 80217-5630 ;
| DDT |>| WED.MAY,960501,11:8