Charter 2011 Annual Report Download - page 13

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PART I
Item 1. Business.
Introduction
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 fiber coaxial cable
plant passing approximately 12.0 million homes, with 98% of homes passed at 550 megahertz (“MHz”) or greater and 98% of
plant miles two-way active. A national Internet Protocol (IP) infrastructure interconnects 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, 2011, we generated approximately $7.2 billion in revenue, of which approximately 50% was
generated from our residential video service. We also generated revenue from Internet, telephone service and advertising. Internet
and telephone service in both residential and commercial markets contributed the majority of the recent growth in our revenue.
As of December 31, 2011, we served approximately 5.2 million residential and commercial customers. We sell our video, 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 62%
of our customers subscribe to a bundle of services.
We served approximately 4.1 million residential video customers as of December 31, 2011, and approximately 79% of our video
customers subscribed to digital video service. Digital video enables our customers to access advanced video services such as high
definition ("HD") television, Charter OnDemand™ (“OnDemand”) video programming, an interactive program guide and digital
video recorder (“DVR”) service.
We also served approximately 3.5 million residential Internet customers as of December 31, 2011. Our Internet service is available
in a variety of download speeds up to 100 megabits per second (“Mbps”) and upload speeds of up to 5 Mbps. We also offer home
networking service, or in-home Wi-Fi, enabling our customers to connect up to five computers wirelessly in the home.
We provided telephone service to approximately 1.8 million residential customers as of December 31, 2011. 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.
Through Charter Business®, we provide scalable, tailored broadband communications solutions to business and carrier
organizations, such as Internet access, data networking, fiber connectivity to cellular towers and office buildings, video
entertainment services and business telephone services. As of December 31, 2011, we served approximately 476,200 commercial
primary service units, primarily 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 on our debt, depreciation expenses resulting from the capital investments we
have made, and continue to make, in our cable properties, amortization expenses resulting from the application of fresh start
accounting and non-cash taxes resulting from increases in our deferred tax liabilities.
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”). The 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. The 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.
The 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”). These references include the subsidiaries of Predecessor or Successor, as the
case may be, unless otherwise indicated or the context requires otherwise.