Charter 2012 Annual Report Download - page 18

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6
entertainment, games, news and sports. Finally, Charter Security Suite is included with Charter Internet services and protects
computers from viruses and spyware and provides parental control features.
Accelerated growth in the number of IP devices and bandwidth used in homes has created a need for faster speeds and greater
reliability. Charter is focused on providing services to fill those needs. In 2012, we raised our base Internet speed offering to 30
Mbps download.
Telephone Services
In 2012, residential telephone services represented approximately 11% of our total revenues. We provide voice communications
services primarily using VoIP technology to transmit digital voice signals over our network. Charter Phone® includes unlimited
nationwide calling, voicemail, call waiting, caller ID, call forwarding and other features. Charter Phone also provides international
calling either by the minute or in a package of 250 minutes per month.
Commercial Services
In 2012, commercial services represented approximately 9% of our total revenues. Commercial services offered through Charter
Business, include scalable broadband communications solutions for businesses and carrier organizations of all sizes such as Internet
access, data networking, fiber connectivity to cellular towers and office buildings, video entertainment services and business
telephone services.
• Small Business. Charter offers small businesses (1 - 19 employees) services similar to our residential offerings
including a full range of video programming tiers and music services, coax Internet speeds up to 100 Mbps
downstream and up to 5 Mbps upstream in its DOCSIS 3.0 markets, a set of business cloud services including web
hosting, e-mail and security, and multi-line telephone services with more than 30 business features including web-
based service management.
• Medium Business. In addition to its other offerings, Charter also offers medium sized businesses (20-199 employees)
more complex products such as fiber Internet with symmetrical speeds of up to 1 Gbps and voice trunking services
such as Primary Rate Interface (“PRI”) and Session Initiation Protocol ("SIP") Trunks which provide higher-capacity
voice services. Charter also offers Metro Ethernet service that connects two or more locations for commercial
customers with geographically dispersed locations with speeds up to 10 Gbps. Metro Ethernet service can also
extend the reach of the customer's local area network or “LAN” within and between metropolitan areas.
• Large Business. Charter offers large businesses (200+ employees) with multiple sites more specialized solutions
such as custom fiber networks, Metro and long haul Ethernet, PRI and SIP Trunk services.
• Carrier Wholesale. Charter offers high-capacity last-mile data connectivity services to wireless and wireline carriers,
Internet Service Providers ("ISPs") and other competitive carriers on a wholesale basis.
Sale of Advertising
In 2012, sales of advertising represented approximately 4% of our total revenues. We receive revenues from the sale of local
advertising on satellite-delivered networks such as MTV®, CNN® and ESPN®. In any particular market, we generally insert
local advertising on up to 40 channels. We also provide cross-channel advertising to some programmers. In addition, we sell
advertising on our Internet portal, Charter.net. In most cases, the available advertising time is sold by our sales force, however in
some cases, we enter into representation agreements with contiguous cable system operators under which another operator in the
area will sell advertising on our behalf for a percentage of the revenue. In some markets, we sell advertising on behalf of other
operators.
Charter has deployed Enhanced TV Binary Interchange Format (“EBIF”) technology to set-top boxes in select service areas within
the Charter footprint. EBIF is a technology foundation that will allow Charter to deliver enhanced and interactive television
applications and enable our video customers to use their remote control to interact with their television programming and its
advertisements. EBIF will enable Charter’s customers to request such items as coupons, samples, and brochures from advertisers.
From time to time, certain of our vendors, including programmers and equipment vendors, have purchased advertising from us.
For the years ending December 31, 2012, 2011 and 2010, we had advertising revenues from vendors of approximately $59 million,
$51 million and $46 million, respectively. These revenues resulted from purchases at market rates pursuant to binding agreements.