Charter 2015 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2015 Charter annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

6
Products and Services
Through our hybrid fiber and coaxial cable network, we offer our customers traditional cable video services, as well as advanced
video services (such as video on demand, HD television, and DVR service), Internet services and voice services. Our voice
services are primarily provided using voice over Internet protocol (“VoIP”) technology, to transmit digital voice signals over our
systems. Our video, Internet, and voice services are offered to residential and commercial customers on a subscription basis, with
prices and related charges 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.
The following table summarizes our customer statistics for video, Internet and voice as of December 31, 2015 and 2014 (in
thousands, except per customer data and footnotes).
Approximate as of
December 31,
2015 (a) 2014 (a)
Customer Relationships (b)
Residential (c) 6,284 5,990
Small and Medium Business (e) 390 332
Total Customer Relationships 6,674 6,322
Residential PSUs (c)
Video 4,322 4,324
Internet 5,227 4,785
Voice 2,598 2,439
12,147 11,548
Monthly Residential Revenue per Residential Customer (d) $ 111.19 $ 108.67
Small and Medium Business PSUs
Video (e) 108 95
Internet 345 290
Voice 218 177
671 562
Monthly Small and Medium Business Revenue per Customer (f) $ 173.12 $ 181.83
Enterprise PSUs (g) 30 25
(a) We calculate the aging of customer accounts based on the monthly billing cycle for each account. On that basis, as of
December 31, 2015 and 2014, customers include approximately 38,100 and 35,100 customers, respectively, whose
accounts were over 60 days, approximately 1,700 and 1,500 customers, respectively, whose accounts were over 90 days,
and approximately 900 and 900 customers, respectively, whose accounts were over 120 days.
(b) Customer relationships include the number of customers that receive one or more levels of service, encompassing video,
Internet and voice services, without regard to which service(s) such customers receive. Total customer relationships
excludes enterprise customer relationships.
(c) Charter revised its methodology for counting customers who reside in residential multiple dwelling units (“MDUs”) that
are billed under bulk contracts. Beginning in the fourth quarter of 2015, we count and report customers based on the
number of billed units within each bulk MDU, similar to recent reporting changes at our peers and reflecting the completion
of all-digital which requires a direct billing relationship for all units which receive a set-top box. Previously, our
methodology for reporting residential customers generally excluded units under bulk arrangements, unless those units
had a direct billing relationship. Prior year information has been revised to reflect our revised methodology.