Charter 2011 Annual Report Download - page 16

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Charter Communications, Inc. Charter owns 100% of Charter Communications Holding Company, LLC (“Charter Holdco”).
Charter Holdco, through its subsidiaries, owns cable systems. As sole manager under applicable operating agreements, Charter
controls the affairs of Charter Holdco and its limited liability company subsidiaries. In addition, Charter provides management
services to Charter Holdco and its subsidiaries under a management services agreement.
Interim Holding Company Debt Issuers. As indicated in the organizational chart above, our interim holding company debt issuers
indirectly own the subsidiaries that own or operate all of our cable systems, subject to a CC VIII, LLC (“CC VIII”) 70% preferred
interest held by CCH I, LLC (“CCH I”) and 30% preferred interest held by Charter as described below. For a description of the
debt issued by these issuers please see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Description of Our Outstanding Debt.”
Preferred Equity in CC VIII. At December 31, 2011, Charter owned 30% of the CC VIII preferred membership interests. CCH
I, an indirect subsidiary of Charter, directly owned the remaining 70% of these preferred interests. The common membership
interests in CC VIII are indirectly owned by Charter Operating.
Products and Services
Through our hybrid fiber and coaxial cable network, we offer our customers traditional cable video services (basic and digital,
which we refer to as “video” services), as well as advanced video services (such as OnDemand, HD television, and DVR service),
Internet services and telephone services. Our telephone services are primarily provided using voice over Internet protocol (“VoIP”)
technology, to transmit digital voice signals over our systems. Our video, Internet, and telephone services are offered to residential
and commercial customers on a subscription basis, with prices and related charges that vary primarily based on the types of service
selected, whether the services are sold as a “bundle” or on an individual basis, and the equipment necessary to receive the services,
with some variation in prices.
The following table summarizes our customer statistics for basic video, digital video, Internet and telephone as of December 31,
2011 and 2010.
Video (b)
Internet (c)
Telephone (d)
Residential PSUs (e)
Video (b)(f)
Internet (c)(g)
Telephone (d)
Commercial PSUs (e)
Digital video RGUs (h)
Total RGUs (i)
Approximate as of
December 31,
2011
4,090,300
3,491,800
1,791,300
9,373,400
234,500
162,800
78,900
476,200
3,410,400
13,260,000
(a) 2010
4,278,400
3,246,100
1,717,000
9,241,500
242,000
138,500
59,900
440,400
3,363,200
13,045,100
(a)
After giving effect to divestitures and acquisitions of cable systems in 2010 and 2011, residential basic video customers, residential
Internet customers and residential telephone customers would have been approximately 4,305,800, 3,263,200 and 1,721,800,
respectively, as of December 31, 2010. After giving effect to divestitures and acquisitions of cable systems in 2010 and 2011,
commercial basic video customers, commercial Internet customers, commercial telephone customers and digital video revenue
generating units would have been approximately 241,900, 138,500, 59,900 and 3,371,300, respectively, as of December 31, 2010.
(a) We calculate the aging of customer accounts based on the monthly billing cycle for each account. On that basis, at
December 31, 2011 and 2010, customers include approximately 18,600 and 15,700 customers, respectively, whose
accounts were over 60 days past due in payment, approximately 2,500 and 1,800 customers, respectively, whose accounts