Charter 2006 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2006 Charter annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

5
CHARTER COMMUNICATIONS, INC. LETTER TO STOCKHOLDERS
Overall, our marketing efforts are focused on establishing long-term
relationships with high-value customers. To that end, we deployed a robust
marketing database to analyze the effectiveness and yield of our marketing
spend. This enables us to focus our efforts on carefully tailored campaigns
from which we expect to generate the highest returns.
Telephone Creates the Triple Play
Charter Telephone is the cornerstone of our triple-play bundle. We
began 2006 with less than 3 million telephone homes passed, and ended
it passing nearly 7 million. As a result, our customer base grew to 446,000,
and telephone revenues more than tripled, to $135 million. In February 2007,
we celebrated the installation of our 500,000th telephone customer. Now,
more than half a million customers enjoy the quality, value, and convenience
of Charter Telephone.
About 75% of our telephone customers subscribe to the triple-play
bundle, and an additional 20% subscribe to two-service bundles. Charter’s
introductory triple-play offer is generally priced at $99 per month, but due
to customer purchases of additional value-added services, we’re generating
average revenue per triple-play customer of $125-$130. Customers are
realizing great value from our bundled offerings, and because Charter is
the first company to offer a bundle of cable television, high-speed Internet,
and telephone service from a single provider in the markets we serve, we
believe we are securing a first-to-market advantage over the competition.
Strong Growth in High-Speed Internet
We continually strive to enhance our high-speed Internet offering with
faster speeds and innovative new features. Speeds of 5 and 10 megabits
per second are now available in all of our market areas, and customers
are responding very positively to the value offered by faster data speeds.
Additional features we offer include a full security suite with anti-virus
protection, firewall, and spam-filtering software; parental controls; a
personalized portal, including TV listings, news, online radio, music,
and video content; and wireless home networking. These value-added
features help set us apart from the competition. With the addition of
305,000 customers in 2006 and the strong reception of our customers to
our higher-speed services, revenues from Charter High-Speed® increased
20% year over year. We ended the year with a total of 2.4 million high-speed
Growing Telephone
Service Availability
We aggressively rolled out telephone
service availability in many of the
markets we serve, adding 3.9 million
homes passed in 2006. Telephone
is the cornerstone of our triple-play
bundled offering, which drives growth
across all of our lines of business.
Telephone Homes Passed
(in millions)
2004 2005 2006
2.9
0.9
6.8
0