Charter 1999 Annual Report Download - page 11

1999 SUMMARY ANNUAL REPORT 9
NEXT GENERATION INTERACTIVE SERVICES ON THE WAY
As we upgrade our systems and install digital set-top con-
verters in millions of homes, we’re installing the platform
necessary to offer a new generation of interactive services.
Interactive digital capability makes possible services
such as video on demand — the convenience of a video store in
your own home, where your first choice is never out
of stock. We currently offer video on demand in a suburb of
Atlanta, and we intend to launch the service in additional
markets this year. We believe that video on demand is
the next logical step in the evolution of video services.
We’re building our systems with interactive capabilities
that will also accommodate telephone service. Cable has
the capacity to combine voice and data communications
and we are currently conducting trials for the delivery
of telephone service at some of our cable systems.
THE PORTAL TO THE BROADBAND FUTURE
Charter’s unique ability to deliver exciting new broad-
band services is exemplified by our next-generation
broadband portal. This portal service will provide our
customers a unique experience, blending the power of the
Internet with the entertainment and convenience of tele-
vision. Our portal service is being provided by DIGEO™
BROADBAND INC., in which Charter will have a 25 percent
ownership position. The other partners are Vulcan
Ventures, Go2Net and High Speed Access Corp., portfolio
companies of Paul Allen.
Through our personalized portal, a customer can
watch TV and view Internet sites simultaneously on a
single TV screen, with an easy-to-use remote control
and navigation tool customized to his or her interests.
The portal is able to customize content for each customer
in a way that satellite and telephone-based systems
can’t. It offers a “whole house solution” — a customized
portal for each person in a household. We’re launching
the portal service in test markets in 2000, with a broader
launch in 2001.
A. FASTER THAN YOU THINK. TODAY, CHARTER IS PUTTING
IN PLACE SYSTEMS WITH THE CAPACITY AND RELIABILITY TO
MAKE BROADBAND A REALITY FOR OUR CUSTOMERS. WE ARE
RAPIDLY INTRODUCING THE NEW PRODUCTS AND SERVICES THAT
BROADBAND MAKES POSSIBLE.
WHAT DOES DIGITAL SERVICE MEAN FOR CHARTER CUSTOMERS?
Close on the heels of Charter’s aggressive program to upgrade its
network is the rapid deployment of new digital services. The focus for
2000 is to roll out Charter Digital Cable and Charter Pipeline as our
systems are upgraded.
The charts at right show the percentage of Charter’s customers
served by systems that will be upgraded in the next few years to vari-
ous bandwidth capabilities, and the percentages of customers that
will have access to digital video and high-speed Internet services.
Charter Digital Cable offers customers more choices, more
convenience, and more value. Customers will find new digital video
channels for their special interests, more premium channels and more
pay-per-view channels designed to let them view programs at their
convenience — plus dozens of CD-quality music channels and an
interactive program guide, making all of this content easy to find.
Charter Pipeline high-speed Internet service enables customers
to access the Internet at speeds 50 to 200 times faster than a
28.8 dial-up modem. Customers can download sites and files faster,
get more done and have more fun. Charter Pipeline is a continuous
connection to the Internet — no dial-up, no waiting.
1999 2000 2001 2002 2003
BANDWIDTH UPGRADES TO CHARTER SYSTEMS
percent of basic customers
100
50
0
75
25
550 MHz
750 MHz
870 MHz
1999 2000 2001 2002 2003
CUSTOMERS WITH ACCESS TO DIGITAL VIDEO
AND HIGH-SPEED INTERNET SERVICE
percent of basic customers
DIGITAL
VIDEO
HIGH-SPEED
INTERNET
SERVICE
100
50
0
75
25