News

Cox Targets Qwest in Arizona

6/23/2003 5:26 AM Eastern

Cox Communications Inc. is turning up the heat on Qwest Communications
International Inc. with a launch of its "Cox Digital Telephone" product to
200,000 households in and around Tucson, Ariz.

The Tucson system is the 11th Cox market to launch bundled telephony service,
and it also marks the first time the MSO is marketing telephony to an entire
cable system.

Cox will look to steal Qwest's local telephone subscribers by charging
existing Cox subscribers $11.75 per month for a Cox Digital Telephone line, 11%
lower than Qwest's package. A second line will cost $8.50 per month, 20% lower
than Qwest's second-line rate.

Cox, which plans to charge for multiple services on a single bill, is also
offering discounts for subscribers who buy bundled packages of video, high-speed
Internet access and telephone service.

The company is banking that many Qwest customers will make the switch,
pointing to a survey in 2002 that found that 41% of Cox subscribers in Tucson
said they would be "very interested" in bundled services from the
MSO.

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