Synergies Breakdown
Reduced SAC · Standardization of set-top boxes $1,041 · Increased production volumes · $125 / Gross add (blended)
Reduced Churn · 0.3% reduction 778 · Increased services and higher customer loyalty
Reduced Programming Costs · 5% cost reduction in 2002 664 · Additional 5% reduction thereafter
Reduced G&A · Elimination of duplicative overhead 427
Reduced CapEx · Elimination of a portion of corporate 100 and satellite capex
Subtotal – Cost Synergies $2,910 *
Estimated ($ In Millions)
Projected 2005 EBITDA Impact
Note: Excludes $100 million of CapEx synergies.