Charter 2010 Annual Report Download - page 14

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PART I
Business.

We are among the largest providers of cable services in the United
States, offering a variety of entertainment, information and
communications solutions to residential and commercial customers.
Our infrastructure consists of a hybrid of fiber and coaxial cable
plant passing approximately 11.8 million homes, with 98% of homes
passed at 550 megahertz (“MHz”) or greater and 97% of plant miles
two-way active. A national Internet Protocol (IP) infrastructure
interconnects all Charter Communications, Inc. (“Charter”)
markets. See "Item 1. Business — Products and Services" for further
description of these terms and services, including "customers."
For the year ended December 31, 2010, we generated approximately
$7.1 billion in revenue, of which approximately 52% was generated
from our residential video service. We also generated revenue
from high-speed Internet, telephone service and advertising with
residential and commercial high-speed Internet and telephone service
contributing the majority of the recent growth in our revenue.
As of December 31, 2010, we served approximately 5.1 million
customers. We sell our video, high-speed Internet and telephone
services primarily on a subscription basis, often in a bundle of two or
more services, providing savings and convenience to our customers.
Bundled services are available to approximately 97% of our homes
passed, and approximately 61% of our customers subscribe to a
bundle of services.
We served approximately 4.5 million video customers as of
December 31, 2010, of which approximately 74% subscribed to
digital video service. Digital video enables our customers to access
advanced video services such as high definition television, Charter
OnDemand™ (“OnDemand”) video programming, an interactive
program guide and digital video recorder (“DVR”) service.
We also served approximately 3.2 million high-speed Internet customers
as of December 31, 2010. Our high-speed Internet service is available
in a variety of download speeds up to 60 megabits per second (“Mbps”).
We also offer home networking service, or Wi-Fi, enabling our
customers to connect up to five computers wirelessly in the home.
We provided telephone service to approximately 1.7 million
customers as of December 31, 2010. Our telephone services typically
include unlimited local and long distance calling to the U.S., Canada
and Puerto Rico, plus other features, including voicemail, call waiting
and caller ID.
rough Charter Business®, we provide scalable, tailored broadband
communications solutions to business organizations, such as
business-to-business Internet access, data networking, fiber
connectivity to cellular towers, video and music entertainment
services and business telephone. As of December 31, 2010, we
served approximately 263,900 business revenue generating units,
including small- and medium-sized commercial customers. Our
advertising sales division, Charter Media®, provides local, regional
and national businesses with the opportunity to advertise in
individual markets on cable television networks.
We have a history of net losses. Our net losses are principally
attributable to insufficient revenue to cover the combination of
operating expenses, interest expenses that we incur because of our
debt and depreciation expenses resulting from the capital investments
we have made, and continue to make, in our cable properties, and in
2010, amortization expenses resulting from the application of fresh
start accounting.
On March 27, 2009, we and certain affiliates filed voluntary
petitions in the United States Bankruptcy Court for the Southern
District of New York (the “Bankruptcy Court”), to reorganize under
Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy
Code”). e Chapter 11 cases were jointly administered under the
caption In re Charter Communications, Inc., et al., Case No. 09-
11435. On May 7, 2009, we filed a Joint Plan of Reorganization
(the “Plan”) and a related disclosure statement with the Bankruptcy
Court. e Plan was confirmed by the Bankruptcy Court on
November 17, 2009 (the “Confirmation Order”), and became
effective on November 30, 2009 (the “Effective Date”), the date
on which we emerged from protection under Chapter 11 of the
Bankruptcy Code.
e terms “Charter,” “we,” “our” and “us,” when used in this
report with respect to the period prior to Charter’s emergence from
bankruptcy, are references to the Debtors (“Predecessor”) and,
when used with respect to the period commencing after Charter’s
emergence, are references to Charter (“Successor”). ese references
include the subsidiaries of Predecessor or Successor, as the case may