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<PAGE> 1
[CORECOMM LOGO]
<PAGE> 2
CORECOMM STRATEGY
First Truly Converged Phone Company
- Bundled phone / Internet / data services,
- Sold to residential and business customers,
- With "internet-centric" distribution
- Over both smart build and fiber direct networks
- To achieve low cost, high rate of return on investment
[CORECOMM LOGO]
<PAGE> 3
MARKET FORCES
- ~$200 Billion U.S. market
- 50% willing to convert
- Unbundled local loop allows creative approach
- Rapid rollout & broad reach
- Efficient capital deployment
- High rates of return
- Internet useful as both product and process
- Residential market untouched
[CORECOMM LOGO]
<PAGE> 4
SMART BUILD NETWORK
---------------
| SWITCH / IP |
| GATEWAY |
---------------
-------- -------- --------
| COLO | | COLO | / | HOME |
-------- -------- / --------
/
-------- City Fiber -------- -------
| COLO | Ring | COLO |----| MDU |
-------- -------- -------
\
\ -------
-------- -------- Leased \ | BIZ |
| COLO | | COLO | Copper/ -------
-------- -------- DSL
--------
| COLO |
--------
[CORECOMM LOGO]
<PAGE> 5
SMART LEC ADVANTAGES
- Capital Efficient
- Lower overall cost
- Success-led
- Attractive margins; control the customer
- Rapid rollout (6-12 mos.)
- Residential and business reach
[CORECOMM LOGO]
<PAGE> 6
COMPETITIVE ADVANTAGE
- Faster / larger telephone reach than cable
- ILEC can't bundle as well
- Other new entrants focused on business only
- Low-cost Internet-centric operations
- Local loop network via fiber provides killer app at the appropriate time
[CORECOMM LOGO]
<PAGE> 7
CORECOMM SMART LEC
- CoreComm has perfected new technique:
- low colo's to start, build to suit later
- packages force all activations "in footprint"
- 85% "on net" achievable, no trapped investment
- migrating res customers not an issue
[CORECOMM LOGO]
<PAGE> 8
MARKET DEPLOYMENT
<TABLE>
<CAPTION>
Potential
CURRENT 2000 2001-2003
------- ---- ---------
<S> <C> <C>
- Chicago - New York - Baltimore
Cleveland Boston Washington
Columbus Philadelphia Milwaukee
Detroit - +27 markets
- SBC;
Bell South;
US West
</TABLE>
[CORECOMM LOGO]
<PAGE> 9
THE RESIDENTIAL OPPORTUNITY
[BAR GRAPH]
<TABLE>
<CAPTION>
BUSINESS RESIDENTIAL
-------- -----------
<S> <C> <C>
MARKET SIZE ~$100 BILLION ~$100 BILLION
# OF CLECS 10-20 1-2
</TABLE>
Source: Based on FCC data and Company estimates
[CORECOMM LOGO]
<PAGE> 10
RESIDENTIAL BUNDLE - ECHAT
- Simple, attractive offer: Telephone + Internet for price of
telephone alone
- $25 to $39 per month minimum plus additional features and usage
- Targets Internet customers:
- spend more, $10-$15 higher average
- convert to high speed, $30-$40 for DSL
[CORECOMM LOGO]
<PAGE> 11
NTL -- FEBRUARY 1996
For Pound Sterling 8.87
BT lets you talk.
[GRAPHIC]
For Pound Sterling 8.87
we give you something
to talk about.
[LOGOS]
[CABLE TEL LOGO]
[CORECOMM LOGO]
<PAGE> 12
"INTERNET-CENTRIC"
- Every customer will be an Internet customer
- On-line:
- sales, sign-up & provisioning
- feature selection
- billing
- customer care / MAC
- Lowers costs, speeds rollout
[CORECOMM LOGO]
<PAGE> 13
BUSINESS BUNDLE - COREPACK
- Bundled Package for 5-15 lines
- telephone, internet, local calls, LD, v-mail
- $55.95 per month per line
- DSL for high speed, $125-$350 per month
- Integrated T-1 for 15-50 lines
- telephone, data, internet bundle
- $1500 - $2500 min per account
- web services too
[CORECOMM LOGO]
<PAGE> 14
[CORECOMM LOGO]
<PAGE> 15
ATTRACTIVE ECONOMICS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CAPEX / LINE TEL & INT W/ DSL
------------ --------- ------
Switching & Facilities $300 - $300
Provisioning / set-up 75 - 75
Internet and Other 25 - 350
----- -----
$400 - $725
MONTHLY REVENUE / LINE LOW HIGH
---------------------- --- ----
Telephony $50 - $65
Internet / DSL 0 - 35
----------------------------------
Total $50 - $100
Gross Profit $25 - $60 (50-60% margin)
EBITDA $12 - $40 (25-40% margin)
Annualized EBITDA $144 - $480
--------------------------------------------------------------------------------
Unlevered Return 36% - 66%
--------------------------------------------------------------------------------
</TABLE>
[CORECOMM LOGO]
<PAGE> 16
SAMPLE MARKET ECONOMICS
($ in Millions)
<TABLE>
<CAPTION>
CLEVELAND, OHIO
---------------
<S> <C>
- Total Telephone Lines 1,7000,000
- Sample Penetration 6%
- Access Lines (Res & Bus) 100,000
- Total Revenue $ 80 mm
- EBITDA $ 28 mm
- Total Investment $ 55 mm
- Initial Capex: $6.5 million
</TABLE>
[CORECOMM LOGO]
<PAGE> 17
CURRENT TELEPHONY CUSTOMER BASE
<TABLE>
<CAPTION>
CURRENT CURRENT 2005E
ACCESS LINES(1) PENETRATION PENETRATION
SWITCH -------------------------- ----------- -----------
MARKET RES BUS TOTAL RES BUS RES BUS
------ --- --- ----- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C>
Cleveland 18,900 14,500 33,400 1.6% 2.7% 6% 7%
Columbus 16,400 5,500 21,900 2.2% 1.8% 6% 7%
Philadelphia 500 137,300 137,800 NM 4.1% 6% 7%
Chicago 4,520 10,400 14,920 0.1% 0.6% 6% 7%
</TABLE>
(1) Q3 Actual. Local lines only. Excludes 18,800 dedicated lines and long
distance lines.
[CORECOMM LOGO]
<PAGE> 18
GROSS ADDITIONS
[BAR CHART]
<TABLE>
<CAPTION>
RESIDENTIAL
<S> <C>
Q1 8,750
Q2 9,400
Q3 11,800
2001E AVG/Q 10,250
</TABLE>
[BAR CHART]
<TABLE>
<CAPTION>
BUSINESS
Q1 Q2 Q3* 2001E AVG/Q
<S> <C> <C> <C> <C>
ATX 13,100 17,150 17,280 9,525
COMM 2,950 4,300 7,250 9,900
-------- -------- -------- --------
16,050 21,450 24,550 19,425
</TABLE>
* ATX Q3 additions normalized for Verizon strike. Actual additions or Q3 were
8,126. September additions were 5,760.
[CORECOMM LOGO]
<PAGE> 19
RESIDENTIAL MARKETING
<TABLE>
<CAPTION>
Q3 2000
GROSS ADDS BY CHANNEL
---------------------
<S> <C>
Referral 42%
Core.com 20%
Direct Mail 14%
Telesales 14%
Other 10%
-----
Total 100%
</TABLE>
<TABLE>
<CAPTION>
Acquisition Costs: CURRENT Q4 TARGET PROJECTED
------- --------- ---------
<S> <C> <C> <C>
Total Sales & Marketing/
Gross Add $240 $170 $120
(includes
branding)
</TABLE>
[CORECOMM LOGO]
<PAGE> 20
WWW.CORE.COM IMPLEMENTATION
<TABLE>
<CAPTION>
MARCH JUNE SEPT
------- ------ -------
<S> <C> <C> <C>
% of gross adds 9% 15% 23%
Hits/ Day 51,871 75,438 181,804
1st time visitors 50,800 57,463 59,118
E-mails answered 1,058 2,143 4,406
Avg.response time (min) 9.4 7.8 6.0
</TABLE>
[CORECOMM LOGO]
<PAGE> 21
ON-NET AND MIGRATION
(CLEVELAND & COLUMBUS)
<TABLE>
<CAPTION>
RES BUS
---------- ---------
<S> <C> <C>
- Intial target on-net percentage 65% 75%
- Q3 '00 additions - % on-net 38% 70%
- Total Customers - in footprint 67% 69%
- Total off-net customers remaining 28,095 15,746
- # of additional collocations to reach
approximately 85% in footprint 9
</TABLE>
[CORECOMM LOGO]
<PAGE> 22
RECENT ACQUISITIONS
[CORECOMM LOGO]
<PAGE> 23
CORECOMM PRO FORMA FOR ACQUISITIONS
($ in Millions)
<TABLE>
<CAPTION>
PRO FORMA
CORECOMM VOYAGER.NET ATX COMBINED
-------- ----------- --- --------
<S> <C> <C> <C> <C>
Revenue (Q3 annualized) $73 $74 $153 $300
Residential Local Access Lines 44,230 44,230
Business Local Access Lines 61,960 137,300 199,260
Internet Subscribers 99,000 358,000 4,600 461,600
</TABLE>
[CORECOMM LOGO]
<PAGE> 24
ATX OVERVIEW
- Same strategy, business focus
- Mid-Atlantic region, strong sales experience
- "Integrated T" approach
-web hosting and ASP services too
- 137,000 local access lines
- $161 million revenues, breakeven EBITDA
[CORECOMM LOGO]
<PAGE> 25
VOYAGER.NET OVERVIEW
- Largest ISP in Great Lakes region
- 360,000 subscribers
- Significant network (200 POPs)
- Superior Internet management
- $75 million revenues; $12 million EBITDA
[CORECOMM LOGO]
<PAGE> 26
ECONOMICS OF INTERNET SUBSCRIBERS
VOYAGER.NET:
------------
SUBS REVENUE EBITDA
---- ------- ------
360,000 $75 mm $12 mm
CORECOMM / VOYAGER:
-------------------
% REV./ ANNUAL
PEN. RGU'S SUB/MO REVENUE EBITDA
---- ----- ------ -------------- -------
Telephony 25% 90,000 $60 $ 65 million
DSL 25% 90,000 $40 $ 43 million
-------------
$ 108 million $ 40 million
Acquisition Multiple (excluding subscriber growth):
AT ACQUISITION PRO FORMA
-------------- ---------
Revenue 2.7x 1.1x
EBITDA 17.1x 3.9x
[CORECOMM LOGO]
<PAGE> 27
CORECOMM
DIRECT FIBER STRATEGY
[CORECOMM LOGO]
<PAGE> 28
"KILLER APP" LOCAL LOOP NETWORK
- Rapid Deployment
- Within CoreComm existing cities
- Telephone & Internet gateway available
- MDU targets -- available metro fiber
- Compelling economics, service control
- Strategic Partners - Cisco, IBM, Corning
[CORECOMM LOGO]
<PAGE> 29
SMART BUILD NETWORK
<TABLE>
<S> <C> <C> <C> <C>
-------------
SWITCH / IP
GATEWAY
-------------
------ ------
COLO COLO
------ ------
------
HOME
------
------ ------ ------
COLO CITY FIBER COLO MDU
------ RING ------ ------
------
LEASED BIZ
COPPER/ ------
DSL
------ ------
COLO COLO
------ ------
------
COLO
------
</TABLE>
[CORECOMM LOGO]
<PAGE> 30
FIBER DIRECT NETWORK
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
-------------
SWITCH / IP
GATEWAY
-------------
----- -----
MDU MDU
----- -----
------
HOME
------
------ ------ ------
COLO CITY FIBER COLO MDU
------ RING ------ ------
------
----- ----- LEASED BIZ
BIZ BIZ COPPER/ ------
----- ----- DSL
------
COLO
------
</TABLE>
[CORECOMM LOGO]
<PAGE> 31
SUMMARY OF SYSTEM COSTS
- DEPLOYMENTS COSTS
- PER PREMISE: $503
- PER SUBSCRIBER: $658 (10 MBPS DATA)
- TOTAL COST PER CUSTOMER
- $1,900 TO $2,400 (TODAY)
- 30% TO 40% PENETRATION
- SIGNIFICANT DECLINES EXPECTED
[CORECOMM LOGO]
<PAGE> 32
SUMMARY
- Attractive Economics
- Achievable Plan
- Components in Place
- Early-Mover Advantage
[CORECOMM LOGO]
<PAGE> 33
[CORECOMM LOGO]
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