Charter 2015 Annual Report Download - page 16

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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 of fiber and coaxial
cable plant with approximately 12.8 million estimated passings, with 98% at 550 megahertz (“MHz”) or greater, 99% of plant
miles two-way active and 99% of plant all-digital. 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."
As of December 31, 2015, we served approximately 6.7 million residential and small and medium business customers. We sell
our video, Internet and voice 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 98% of our passings, and approximately
61% of our customers subscribe to a bundle of services.
We served approximately 4.3 million residential video customers as of December 31, 2015. We completed our all-digital rollout
in 2014 and substantially all of our markets now offer over 200 HD channels and faster Internet speeds. We have launched the
Charter Spectrum® brand in our all-digital markets. Digital video enables our customers to access advanced video services such
as high definition ("HD") television, video on demand programming, an interactive program guide and digital video recorder
(“DVR”) service.
We also served approximately 5.2 million residential Internet customers as of December 31, 2015. Our Internet service is available
in a variety of download speeds of up to 100 megabits per second (“Mbps”), and up to 120 Mbps in certain markets, and upload
speeds of up to 5 Mbps. Approximately 88% of our Internet customers have at least 60 Mbps download speed.
We provided voice service to approximately 2.6 million residential customers as of December 31, 2015. Our voice services typically
include unlimited local and long distance calling to the United States, Canada and Puerto Rico, plus other features, including
voicemail, call waiting and caller ID.
Through Spectrum Business®, we provide scalable, tailored broadband communications solutions to business and carrier
organizations, such as video entertainment services, Internet access, business telephone services, data networking and fiber
connectivity to cellular towers and office buildings. As of December 31, 2015, we served approximately 671,000 small and
medium business primary service units ("PSUs") and 30,000 enterprise PSUs. Our advertising sales division, Spectrum Reach®,
provides local, regional and national businesses with the opportunity to advertise in individual markets on cable television networks.
For the year ended December 31, 2015, we generated approximately $9.8 billion in revenue, of which approximately 83% was
generated from our residential video, Internet and voice services. We also generated revenue from providing video, Internet, voice
and fiber connectivity services to commercial businesses and from the sale of advertising. Sales from residential Internet and
triple play customers (customers receiving all three service offerings, video, Internet and voice) and from commercial services
have contributed to the majority of our recent revenue growth.
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 related to our customer relationship intangibles
and non-cash taxes resulting from increases in our deferred tax liabilities.
Our principal executive offices are located at 400 Atlantic Street, Stamford, Connecticut 06901. Our telephone number is (203)
905-7801, and we have a website accessible at www.charter.com. Our annual reports, quarterly reports and current reports on
Form 8-K, and all amendments thereto, are available on our website free of charge as soon as reasonably practicable after they
have been filed. The information posted on our website is not incorporated into this annual report.
TWC Transaction
On May 23, 2015, we entered into an Agreement and Plan of Mergers (the “Merger Agreement”) with Time Warner Cable Inc.
("TWC"), CCH I, LLC (“New Charter”), a wholly owned subsidiary of Charter; Nina Corporation I, Inc., Nina Company II, LLC,