text: *Higher Cable Telephony Revenue and Growing Subscriber Base*
  Phone revenue was 4% higher in 2013, compared to last year, the net 
  result of: 
  (cid:129) higher phone subscriber base 
  (cid:129) partially offset by higher promotional pricing activity. 
  
  (cid:129) the cost of programming 
  (cid:129) all other expenses involved in day-to-day operations, to service 
  existing subscriber relationships and attract new subscribers. 
  
  Overall operating expenses increased slightly this year compared to last 
  year mainly due to: 
  (cid:129) operating expenses generated by Mountain Cable which we acquired 
  
  Phone subscribers grew 7% in 2013, compared to last year and represent: 
  (cid:129) 54% of our television subscribers, compared to 49% last year 
  (cid:129) 29% of the homes passed by our cable network, compared to 28% 
  earlier this year 
  
  (cid:129) higher investments in customer care and network 
  (cid:129) partially offset by savings from improvements in our cost structure  last year. 
  and productivity and lower subscriber additions. 
  
  *Lower Equipment Sales*
  Equipment sales include revenues generated from the sale of digital 
  cable set-top terminals and Internet modems. 
  
  Lower equipment revenue this year compared to 2012 reflects the 
  reduction of cable boxes sales versus rentals. 