To read Part 1 of live blog of TWX conference call, see this post.

9:40 am: SUMMARY OF Q&A:

WONG from Bear Stearns on CABLE asks about integrations and roll-out of commercial phones.
ANSWER: LA is complicated and may take a year and a half; think "we'll" lose some in first half 2007 and gain it back in the second half because of line-up changes. Other system measurement in other cities is how this conclusion is drawn. DALLAS is consistent and 2007 is a stabilizing year with a plant upgrade and digitalphone launch (available to 1/4 million now and will be available to 500K in March). CAP-EX is "450 to 550," lower than they originally expected.

MAVEN of Sanford Bernstein: What are you seeing on AOL pageviews without stabilization or growth?
ANS: the reason they think it will grow in 2007 is after a 4-5% decline in Q4 2006; they moved several titles out of the mix and that accounted for part of the drop. The new sign-ups may be accounting for part of the drop; as that continues to move to free they think it will lead to a base of page views increasing. Email is seeing page view growth and this is a precursor to overall increases down the road. The broadband usage is often 50% more views per sub, and they aretrying to switch them. The new search tool is going to increase. ANOTHER QUESTION on the TENURED BASE: it hasn't been fully broken out but they want to discuss in a call-back.

Q: SINGER of COWEN & CO....On publishing are all the personnel changes done and what sort of EBITDA do they see in 3 years.
ANS: They want to see EBITDA Growth in 2007 on all businesses including publishing.
Even Time Magazine they want to see growth in EBITDA in 2 years but they aren't proviong guidance.

Q: JESSICA REIF COHEN of MERRILL LYNCH: ON CABLE GROWTH AND PROGRAMMING COSTS UP? ALSO ON MORE COLOR FOR REVENUE OPPORTUNITIES IN AD AND BUSINESS OFFERINGS?
ANS: the earnings going up in 06 in Turner and HBO but maybe not revenues; the loss of non-Sopranos were lumpy as a result; net margin is steady; CNN saw revenue and earnings up; as well as cartoons. Q4 had some programming one-time costs that were attributed to marketing and were 'lumpy' and impacted from shut down costs at WB and Turner by $114 million, but not indicative of a full-year. The HBO has tough comparables because of Soprano's. ON CABLE: They said it's too early in 2007 to give real guidance right now; but the small-mid business has potential for entire size of residential.

Q: NOTO of GOLDMAN SACHS: How much of margin gap can they bring up for Adelphia users? At AOL is it more leveraged and seeing better CPM's?
ANS: as far as what can happen with costs they cant really forecast exact number even though they have it in plans. To increase the margin gap will come from revenue side, so out of the 10% gap they want to bring up penetration and revenues. Since they are coming out of bankruptcy there is no low hanging fruit is what PARSON's keyed in on. ANOTHER Q: When do they see the triple-bundle help growth? ANS: in second half in LA/DALLAS; 80% of core sub-loss is solely from LA & DALLAS.

JASON of CITIGROUP: There is a controversy on Verizons fiber roll-out and video penetration; do they see the same adoption rate at TWC? ANS: The roll-out is comparable but overbuilders only cover 3% overlap right now and reduces the ability of others to compete. Video from them is not really a difficult challenge. ANOTHER Q: In last MAY Investor Day, do they expect to move to 1 GIG in all markets? That speed is more coincidental and switching will be to more than enough capacity.

LAST Q: CREDIT SUISSE: On AOL about optimism for 2007 online market growth or will it slow? IS there an optimal number of a basing out in paying access subscribers? ANS: Growth in ad revenues industry wide will grow in 2007 like it did this year, but not 20% to 30% for 100 years. They want to grow at or above industry and taking share. ON optimal subscriber numbers, the cost structure is not where it cant make it efficient and economical; but no specific numbers. It wants to go for broadband users down the road and they want to move and offer the broadband to subs because they are the lions share of the future.

CONFERENCE CALL ENDED.