Question-and-Answer Session
Operator
Thank you. We will now begin the question-and-answer session (Operator Instructions). Your first question will come from the line of Jessica Reif-Cohen from Merrill Lynch.
Jessica Reif-Cohen - Merrill Lynch
Happy Valentines Day, everybody. I have two questions, one is could you give us a little bit more color on the interactive advertising initiatives and why you said there is no political advertising in '08 or why you don't expect that and second you said that you are going to increase marketing in '08. Could you also discuss any customer service initiatives? Thanks.
Steve Burke
Okay, Jessica. We, the cable company’s have been getting together and starting to lay the foundation for a truly national interactive advertising platform, which I think is one of the most exciting upside that we have in the business. I want to caution everybody, this is complicated stuff but we've made a lot of progress, we're putting real money into our capital budget, this year $50 million to $70 million on interactive advertising infrastructure. So this is going to be something that is very real and very significant in terms of its contribution to our business if you go out to '09 and '10.
In terms of political. Political is definitely going to have an impact on '08 advertising but not until the second half of the year. We didn't have political in a very major way at the end of 2007 but we would see as we get into the second half of 2008, political being very significant.
In terms of marketing and customer service, I look at our budget this year both on the operating side and the capital side, as what I would call a fighters budget. In other words, we've made investments in marketing, in customer service, we put capital into go digital and all digital in 20% of the market DOCSIS 3.0. We are budgeting to come out swinging and that is both on the marketing side and the investment and product development and customer service. That's all baked into the plan and that's how we intend to run the business.
Jessica Reif-Cohen - Merrill Lynch
Thank you.
Marlene Dooner
Thank you. Operator, next question please?
Operator
Your next question will come from the line of Craig Moffett from Sanford Bernstein.
Craig Moffett - Sanford Bernstein
Good morning and my thank you for all the extra detail on capital spending. Two questions if I could. First, it looks like you've had some margin expansion looking backwards and my guess is you're seeing less -- with less housing velocity, you're seeing less activity in terms of churn and that sort of thing, as people do start buying houses and moving as much. Wouldn’t you expect continued margin expansion next year and your guidance is projecting essentially flat margins and then looking at your EBITDA growth guidance and the implied reduction in capital intensity, it looks like it would suggest more than 20% free cash flow growth and that you are guiding to 20% free cash flow growth. I wonder if you could just comment on that as well?
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