Charter 1999 Annual Report Download - page 9

INTERACTIVE DIGITAL SERVICES ARE HERE TODAY
The possibilities of broadband communications are endless
— and they begin right here and now. As we upgrade our
systems, we’re rolling out advanced digital services, such as
Charter Digital Cable and Charter PipelineTM high-speed
Internet service. At year-end 1999, we served 155,400 digital
video customers and 65,600 high-speed Internet service
customers — exceeding analysts’ expectations for these new
services.
Charter leads the industry in the number of interactive
customers over TV, through WorldGate’s Internet on EVERY
TVSM service. WorldGate offers a user friendly service that
allows customers to surf the Internet through their televisions
using either a remote control or special wireless keyboard.
Another interactive service offered by Charter is Wink®.
When the Wink icon appears on the TV screen, the customer
can press a button on the remote control to read additional
information about the program. For example, when Wink
appears during a basketball game it might provide further
information about a player or scores from other games. At
the end of March 2000, approximately 60,000 Charter
customers were enjoying Wink service.
Our goal is to bring digital technology to customers as
fast as possible. A digital set-top converter in a customer’s
home not only provides exciting new services but is fun-
damental to delivering the full potential of broadband. Our
goal is for every headend serving 5,000 customers or more
to offer digital service by year-end 2000. Further, we plan to
install digital video service at an average pace of 10,000 cus-
tomers a week in 2000.
1999 SUMMARY ANNUAL REPORT 7
A. AT THE FOREFRONT OF THE BROADBAND REVOLUTION.
CHARTER IS UNIQUELY POSITIONED TO BRING CUSTOMERS
THE BENEFITS OF OUR POWERFUL BROADBAND NETWORK. WE
COMBINE TECHNOLOGICAL LEADERSHIP WITH A TRACK RECORD
OF GIVING OUR CUSTOMERS THE SERVICES THEY DESIRE.
MICHIGAN
544,000
NORTH CENTRAL
801,000
MID-ATLANTIC
555,000
SOUTHEAST
960,000
NORTHWEST
371,000
SOUTHERN
CALIFORNIA
748,000
MID-SOUTH
543,000
NATIONAL
428,000
GULF COAST
432,000
CENTRAL
428,000
NORTHEAST
328,000
WHAT ARE THE BENEFITS
OF CLUSTERING?
As we acquire new systems, we seek to
improve the clustering of our cable opera-
tions. By serving systems in close proximity
to one another, we can reduce the number
of headends, lowering operating costs and
creating efficiencies for implementing new
services. This also allows us to concentrate
our marketing efforts, providing cost effi-
ciencies for media buying, telemarketing
and other marketing practices.
We expect to reduce the number of
headends by about 65 percent —from
1,250 at the end of 1999, to fewer than
500 by 2003. As a result, over 60 percent
of Charter customers will be on headends
serving more than 50,000 customers;
thereby reducing costs and speeding
introduction of advanced services.
WHERE ARE CHARTER’S CUSTOMERS?
The map below shows Charter’s 11 operating regions with the number of customers
served in each. While Charter serves customers in nearly 40 states, approximately
80 percent of Charter customers are concentrated in 14 states.