InvestorsApril 17, 2006
Charter Ramps Up Telephone Launches: Adds 1 Million Homes Passed in Seven New Markets; Now Serves 191,000 Phone Customers
ST. LOUIS--(BUSINESS WIRE)--April 17, 2006--Charter Communications, Inc. (Nasdaq:CHTR) (along with its subsidiaries, the "Company" or "Charter") has accelerated its launch of telephone service in the communities it serves. Charter today announced that it launched telephone service in seven new markets in the first quarter of 2006, significantly expanded service in existing telephone markets and extended telephone capability to 1 million new homes. As a result, Charter offered telephone service to nearly 3.9 million homes and had more than 191,000 telephone customers as of March 31, 2006.
The seven markets now offering Charter's phone service include Long Beach/San Gabriel Valley, CA; Willimantic and Newtown, CT; Chicopee, MA; Blount County and Jackson, TN; and Gwinnett, GA. Charter also expanded its telephone service in Sturgeon Bay, Wausau, and Northeast WI; Bristol, VA; Asheville, NC; and Moreno and Adelanto, CA.
"We're giving telephone customers a choice where they've had none before, and the response has been extremely positive, especially for our flat-rate unlimited long-distance service," said Ted Schremp, senior vice president and general manager of Charter's telephone service. "As the second entrant in a previously monopolistic phone market, we are well-positioned to compete with our three-product bundle, which includes video, high-speed Internet, and telephone service."
A growing number of Charter's customers are purchasing a bundle of two or three products, and the company is experiencing higher customer penetration and reduced churn in markets where it offers telephone service in addition to its video and Internet access services. "We're working hard to use our network advantages to build strong customer relationships," said Neil Smit, Charter's president and chief executive officer. "We'll continue to aggressively roll out telephone service to make the three-product bundle available in a majority of our footprint, and we're on track to offer telephone service to between six million and eight million homes by year end."
Charter's telephone offer includes unlimited local and long-distance calling, as well as popular calling features and voice mail, all for a flat rate of $39.99 per month for customers who also purchase video or high-speed Internet service. Customers who subscribe to all three Charter services qualify for additional discounts and receive the convenience of a single bill for all services.
About Charter Communications
Charter Communications, Inc., a leading broadband communications company, provides a full range of advanced broadband services to the home, including cable television on an advanced digital video programming platform via Charter Digital(TM), Charter High-Speed(TM) Internet service and Charter Telephone(TM). Charter Business(TM) provides scalable, tailored and cost-effective broadband communications solutions to organizations of all sizes through business-to-business Internet, data networking, video and music services. Advertising sales and production services are sold under the Charter Media(R) brand. More information about Charter can be found at www.charter.com.
Cautionary Statement Regarding Forward-Looking Statements:
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), regarding, among other things, our plans, strategies and prospects, both business and financial. The Company will not undertake to revise forward-looking projections to reflect events after this date. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this release are set forth in reports or documents that we file from time to time with the SEC, and include, but are not limited to:
-- the availability, in general, of funds to meet interest payment obligations under our debt and to fund our operations and necessary capital expenditures, either through cash flows from operating activities, further borrowings or other sources and, in particular, our ability to be able to provide under applicable debt instruments such funds (by dividend, investment or otherwise) to the applicable obligor of such debt; -- our ability to comply with all covenants in our indentures, the bridge loan and credit facilities, any violation of which would result in a violation of the applicable facility or indenture and could trigger a default of other obligations under cross-default provisions; -- our ability to pay or refinance debt prior to or when it becomes due and/or to take advantage of market opportunities and market windows to refinance that debt through new issuances, exchange offers or otherwise, including restructuring our balance sheet and leverage position; -- our ability to sustain and grow revenues and cash flows from operating activities by offering video, high-speed Internet, telephone and other services and to maintain and grow a stable customer base, particularly in the face of increasingly aggressive competition from other service providers; -- our ability to obtain programming at reasonable prices or to pass programming cost increases on to our customers; -- general business conditions, economic uncertainty or slowdown; and -- the effects of governmental regulation, including but not limited to local franchise authorities, on our business.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this release.
CONTACT: Charter Communications Inc., St. Louis Press: Anita Lamont, 314-543-2215 or Analysts: Cathy Levendoski, 314-543-2397 or Ken Cook, 314-543-2397 SOURCE: Charter Communications, Inc.