Charter 2005 Annual Report Download - page 13

CHARTER COMMUNICATIONS, INC. 2005 FORM 10-K
bundled offerings provides value to our customers that distin- With over 92% of our homes passed having bandwidth of
guishes us from the competition. We believe bundled offerings 550 megahertz or higher, we believe our broadband network
increase penetration of all our products and services and provides the infrastructure to deliver the products and services
improves customer retention and perception. Through targeted today’s consumer desires. See ‘‘— Our Network Technology.’’ In
marketing of bundled services, we will pursue growth in our 2005 we invested in programs and initiatives to improve all
customer base and improvements in customer satisfaction. aspects of operations, and going forward we will seek to
Targeted marketing also promotes the appropriate matching of capitalize on that solid foundation. We plan to leverage both
services with customer needs leading to improved retention of our broadband network and prior investments in operational
existing customers and lower bad debt expense. efficiencies to generate profitable revenue growth.
Expanding telephone service to additional markets and Through our targeted marketing strategy, we plan to meet
achieving increased telephone service penetration will be a high the needs of our current customers and potential customers with
priority in 2006 and will be important to revenue growth. We desirable, value-based offerings. We will seek to capitalize on the
plan to add enhancements to our high-speed Internet service to capabilities of our broadband network in order to bring
provide customers the best possible Internet experience. Our innovative products and services to the marketplace. Our
digital video platform enables us to provide customers advanced employees are dedicated to Charter’s customer-first philosophy,
video products and services such as VOD, high-definition and we will strive to support their continued professional
television and digital video recorder (‘‘DVR’’) service. We will growth and development, providing the right tools and training
also continue to explore additional product and service offerings necessary to accomplish our goals. We believe our strategy
to complement and enhance our existing offerings and generate differentiates us from the competition and plan to enhance our
profitable revenue growth. ability to continue to grow our broadband operations in the
In addition to the focus on our primary residential communities we serve.
customer base, we will strive to expand the marketing of our
ORGANIZATIONAL STRUCTURE
video and high-speed Internet services to the business commu-
nity and introduce telephone service, which we believe has The chart below sets forth our organizational structure and that
growth potential. of our direct and indirect subsidiaries. This chart does not
include all of our affiliates and subsidiaries and, in some cases,
Operating and Capital Effectiveness
we have combined separate entities for presentation purposes.
We plan to further capitalize on initiatives launched during 2005
The equity ownership, voting percentages and indebtedness
to continue to drive operating and capital effectiveness. Specifi-
amounts shown below are approximations as of December 31,
cally, additional improvements in work force management will
2005 giving effect to the issuance and sale of $450 million
enhance the efficient operation of our customer care centers and
principal amount of 10.250% CCH II notes in January 2006 and
technical operations functions. We will continue to place the
the use of such proceeds to pay down credit facilities and the
highest priority for capital spending on revenue-generating
issuance of 22.0 million shares on February 6, 2006 and do not
initiatives such as telephone deployment.
give effect to any exercise, conversion or exchange of then
outstanding options, preferred stock, convertible notes and other
convertible or exchangeable securities.
3