−Removed: We are the second largest cable operator in the United States and a leading broadband communications services company providing video, Internet and voice services to approximately 29.2 million residential and small and medium business customers at December 31, 2019 .
−Removed: We also offer mobile service to residential customers and recently launched mobile service to small and medium business customers.
−Removed: In addition, we sell video and online advertising inventory to local, regional and national advertising customers and tailored communications and managed solutions to larger enterprise customers.
−Removed: We also own and operate regional sports networks and local sports, news and community channels.
−Removed: We own and operate a high-capacity, two-way telecommunications network which passes over 52 million households and small and medium businesses across the United States.
−Removed: Our core strategy is to use our network to deliver high quality products at competitive prices, combined with outstanding service.
+Added: We are a leading broadband connectivity company and cable operator serving more than 31 million customers in 41 states through our Spectrum brand.
+Added: Over an advanced high-capacity, two-way telecommunications network, we offer a full range of state-of-the-art residential and business services including Spectrum Internet, TV, Mobile and Voice.
+Added: For small and medium-sized companies, Spectrum Business ® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions.
+Added: Spectrum Reach ® delivers tailored advertising and production for the modern media landscape.
+Added: We also distribute award-winning news coverage, sports and high-quality original programming to our customers through Spectrum Networks and Spectrum Originals.
+Added: Our network, which we own and operate, passes over 53 million households and small and medium businesses ("SMBs") across the United States.
+Added: Our core strategy is to use our network to deliver high quality products at competitive prices, combined with outstanding customer service.
This strategy, combined with simple, easy to understand pricing and packaging, is central to our goal of growing our customer base while selling more of our core connectivity services, which include both fixed and mobile Internet, video and voice services, to each individual customer.
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The combination of offering high quality, competitively priced products and outstanding service, allows us to both increase the number of customers we serve over our fully deployed network, and to increase the number of products we sell to each customer.
−Removed: This combination also reduces the number of service transactions we perform per relationship, yielding higher customer satisfaction and lower customer churn, resulting in lower costs to acquire and serve customers.
−Removed: We have enhanced our service operations to allow our customers to (1) more frequently interact with us through our customer website and Spectrum TV application, online chat and social media, (2) have their services installed at the time and in the manner of their own choosing, including self-installation, and (3) receive a variety of video packages on an increasing number of connected devices including those owned by us and those owned by the customer.
+Added: This combination also reduces the number of service transactions we perform per relationship, yielding higher customer satisfaction and lower customer churn, resulting in lower costs to acquire and serve customers and greater profitability.
+Added: We have enhanced our service operations to allow our customers to (1) more frequently interact with us through our customer website and My Spectrum application, online chat and social media, (2) have their services installed at the time and in the manner of their own choosing, including self-installation, and (3) receive a variety of video packages on an increasing number of connected devices including those owned by us and those owned by the customer.
By offering our customers growing levels of choices in how they receive and install their services and how they interact with us, we are driving higher overall levels of customer satisfaction and reducing our operating costs and capital expenditures per customer relationship.
Ultimately, our operating strategy enables us to offer high quality, competitively priced services profitably, while continuing to invest in new products and services.
−Removed: The capability and functionality of our two-way network continues to grow in a number of areas, especially with respect to wireless connectivity.
+Added: The capability and functionality of our network continues to grow in a number of areas, especially with respect to wireless connectivity.
Our Internet service offers consumers the ability to wirelessly connect to our network using WiFi technology.
−Removed: We estimate that over 300 million devices are wirelessly connected to our network through WiFi.
−Removed: Initially, our wireless strategy focused on offering wireless connectivity solutions inside the home and business using WiFi.
−Removed: Through our mobile virtual network operator (“MVNO”) reseller agreement with Verizon Communications Inc.
−Removed: ("Verizon"), we are now able to offer Internet connectivity to our customers beyond the home via our Spectrum Mobile product.
−Removed: We are also actively testing and evaluating opportunities for our customers to wirelessly connect to our network using a combination of licensed and unlicensed radio spectrum to deliver fixed and mobile service directly from our distributed, high capacity network .
+Added: We estimate that approximately 400 million devices are wirelessly connected to our network through WiFi.
+Added: In addition, we extend Internet connectivity to our customers beyond the home via our Spectrum Mobile product through our mobile virtual network operator (“MVNO”) reseller agreement with Verizon Communications Inc.
+Added: In 2020, we purchased 210 Citizens Broadband Radio Service (“CBRS”) Priority Access Licenses (“PALs”) within our footprint from the Federal Communications Commission ("FCC").
+Added: We intend to use the licenses along with unlicensed CBRS spectrum to build our own fifth generation ("5G") mobile network which we plan to use in combination with our MVNO and WiFi network to enhance our customer’s experience and improve our cost structure.
Our principal executive offices are located at 400 Atlantic Street, Stamford, Connecticut 06901.
−Removed: Our telephone number is (203) 905-7801, and we have a website accessible at www.charter.com.
+Added: Our telephone number is (203) 905-7801, and we have a website accessible at www.corporate.charter.com.
Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q 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.
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Financial Statements and Supplementary Data,” which also includes the accreted values of the indebtedness described below.
+Added: We operate in geographically diverse areas which are managed centrally on a consolidated level.
+Added: The map below highlights our footprint as of December 31, 2020.
Products and Services
−Removed: We offer our customers subscription-based video services, Internet services, and voice and mobile services.
+Added: We offer our customers subscription-based Internet services, video services, and mobile and voice services.
Our 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 based on the equipment necessary to receive our services.
−Removed: Bundled services are available to substantially all of our passings, and approximately 57% of our residential customers subscribe to a bundle of services including some combination of our video, Internet and/or voice products.
−Removed: The following table summarizes our customer statistics for video, Internet, mobile and voice as of December 31, 2019 and 2018 (in thousands except per customer data and footnotes).
+Added: Bundled services are available to substantially all of our passings, and approximately 56% of our residential customers subscribe to a bundle of services including some combination of our Internet, video and/or voice products.
+Added: The following table summarizes our customer statistics for Internet, video, voice and mobile as of December 31, 2020 and 2019 (in thousands except per customer data and footnotes).
Approximate as of
Customer Relationships (b)
−Removed: Small and Medium Business
+Added: Residential 29,079 27,277
+Added: SMB 2,051 1,958
Total Customer Relationships 31,130 29,235
−Removed: Residential Primary Service Units ("PSUs")
Monthly Residential Revenue per Residential Customer (c)
−Removed: Small and Medium Business PSUs
−Removed: Monthly Small and Medium Business Revenue per Customer (d)
−Removed: Enterprise PSUs (e)
−Removed: We calculate the aging of customer accounts based on the monthly billing cycle for each account.
+Added: $ 111.15 $ 112.63
+Added: Monthly SMB Revenue per SMB Customer (d)
+Added: $ 165.60 $ 169.90
+Added: Residential 27,023 24,908
+Added: SMB 1,856 1,756
+Added: Total Internet Customers 28,879 26,664
+Added: Residential 15,639 15,620
+Added: Total Video Customers 16,200 16,144
+Added: Residential 9,215 9,443
+Added: SMB 1,224 1,144
+Added: Total Voice Customers 10,439 10,587
+Added: Residential 2,320 1,078
+Added: Total Mobile Lines 2,375 1,082
+Added: Enterprise Primary Service Units ("PSUs") (e)
+Added: (a) We calculate the aging of customer accounts based on the monthly billing cycle for each account.
On that basis, as of December 31, 2020 and 2019, customers include approximately 168,400 and 154,200 customers, respectively, whose accounts were over 60 days past due, approximately 17,800 and 13,500 customers, respectively, whose accounts were over 90 days past due, and approximately 11,100 and 10,000 customers, respectively, whose accounts were over 120 days past due.
−Removed: 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.
+Added: (b) Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video and voice services, without regard to which service(s) such customers receive.
Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU.
Total customer relationships exclude enterprise and mobile-only customer relationships.
−Removed: Monthly residential revenue per residential customer is calculated as total residential video, Internet and voice annual revenue divided by twelve divided by average residential customer relationships during the respective year.
−Removed: Monthly residential revenue per residential customers excludes mobile revenue and customers.
−Removed: Monthly small and medium business revenue per customer is calculated as total small and medium business annual revenue divided by twelve divided by average small and medium business customer relationships during the respective year.
−Removed: Monthly small and medium business revenue per small and medium customer excludes mobile revenue and customers.
−Removed: Enterprise PSUs represent the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
+Added: (c) Monthly residential revenue per residential customer is calculated as total residential annual revenue divided by twelve divided by average residential customer relationships during the respective year and excludes mobile revenue and customers.
+Added: (d) Monthly SMB revenue per SMB customer is calculated as total SMB annual revenue divided by twelve divided by average SMB customer relationships during the respective year and excludes mobile revenue and customers.
+Added: (e) Enterprise PSUs represent the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
Residential Services
+Added: Internet Services
+Added: Our Spectrum pricing and packaging (“SPP”) offers an entry level Internet download speed of at least 200 megabits per second (“Mbps”) in nearly 75% of our footprint and 100 Mbps across the remainder of our footprint, which among other things, allows several people within a single household to stream high definition (“HD”) video content while simultaneously using our Internet service for other purposes.
+Added: Additionally, leveraging DOCSIS 3.1 technology, we offer Spectrum Internet Gig (940 Mbps) speed service in nearly all of our footprint.
+Added: Finally, we offer a security suite with our Internet services which, upon installation by customers, provides protection against computer viruses and spyware and includes parental control features.
+Added: We offer an in-home WiFi product that provides customers with high performance wireless routers and a managed WiFi service to maximize their in-home wireless Internet experience.
+Added: During 2020, we continued to roll out our advanced in-home WiFi product and we plan to expand availability from over 65% of our footprint to substantially all by the end of 2021.
+Added: With advanced in-home WiFi, customers enjoy an optimized WiFi connection and have the ability to view and control their WiFi network with the My Spectrum App allowing them to set schedules for specific devices.
+Added: Advanced in-home WiFi is built on a software platform that will allow us to integrate and launch additional network based security and control features as well as enhanced speeds for our mobile customers within the home.
+Added: In 2020, we also launched the option to add Spectrum WiFi Pods to our advanced in-home WiFi product.
+Added: Spectrum WiFi pods are small, discreet and powerful pods that plug into electrical outlets in the home to deliver additional access points, resulting in more consistent coverage throughout the home.
Video Services
−Removed: Our video customers receive a package of programming which generally includes a digital set-top box that provides an interactive electronic programming guide with parental controls, access to pay-per-view services, including video on demand (“VOD”) (available to nearly all of our passings) and the ability to view certain video services on third-party devices inside and outside the residence.
+Added: Our video customers receive a package of programming which generally includes a digital receiver that provides an interactive electronic programming guide with parental controls, access to pay-per-view services, including video on demand (“VOD”) (available to nearly all of our passings) and the ability to view certain video services on third-party devices inside and outside the home.
Customers have the option to purchase additional tiers of services, including premium channels which provide original programming, commercial-free movies, sports, and other special event entertainment programming.
Substantially all of our video programming is available in high definition.
−Removed: We also offer certain video packages containing a limited number of channels via our cable television systems.
+Added: We also offer certain video packages containing a limited number of channels.
In the vast majority of our footprint, we offer VOD service which allows customers to select from over 75,000 titles at any time.
−Removed: VOD programming options may be accessed for free if the content is associated with a customer’s linear subscription, or for a fee on a transactional basis.
+Added: VOD programming options may be accessed at no additional cost if the content is associated with a customer’s linear subscription, or for a fee on a transactional basis.
VOD services are also offered on a subscription basis included in a digital tier premium channel subscription or for a monthly fee.
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Customers are increasingly accessing their subscription video content through connected IP devices via our IP network.
−Removed: In 2019, we launched cloud DVR service which allows customers to schedule, record and watch their favorite programming anytime from connected IP devices as well as SpectrumTV.com.
−Removed: Our video customers also have access to programmer authenticated applications and websites (known as TV Everywhere services) such as HBO Go, Fox Now, Discovery Go and ESPN.
+Added: Our cloud DVR service allows customers to schedule, record and watch their favorite programming anytime from connected IP devices as well as SpectrumTV.com.
+Added: Our video customers also have access to programmer authenticated applications and websites (known as TV Everywhere services) such as Fox Now, Discovery Go and ESPN.
We deploy Spectrum Guide ® , our network or “cloud-based” user interface, to new video customers in the majority of our service areas.
−Removed: Spectrum Guide runs on traditional set-top boxes but offers a look and feel similar to that of our Spectrum TV application.
+Added: Spectrum Guide runs on traditional digital receivers but offers a look and feel similar to that of our IP-based Spectrum TV application.
Spectrum Guide also provides access to third-party video applications such as Netflix.
−Removed: Internet Services
−Removed: Our Spectrum pricing and packaging (“SPP”) offers an entry level Internet download speed of at least 200 megabits per second (“Mbps”) in approximately 60% of our footprint and 100 Mbps across approximately 40% of our footprint, which among other things, allows several people within a single household to stream high definition (“HD”) television video content while simultaneously using our Internet service for other purposes.
−Removed: Additionally, leveraging DOCSIS 3.1 technology, we offer 940 Mbps speed service ("Spectrum Internet Gig") in nearly all of our footprint.
−Removed: Finally, we offer a security suite with our Internet services which, upon installation by customers, provides protection against computer viruses and spyware and includes parental control features.
−Removed: We offer an in-home WiFi product that provides customers with high performance wireless routers to maximize their in-home wireless Internet experience.
−Removed: At the end of 2019, we launched our advanced in-home WiFi product in select service areas and we plan to continue to roll this product out to our entire footprint throughout 2020 and 2021.
−Removed: Advanced in-home WiFi provides connected device visibility, management and control to customers in a single application and to customer service agents to help support our customers.
−Removed: Advanced in-home WiFi is built on a software platform that will allow us to integrate and launch additional network based security and control features.
Voice Services
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For customers that subscribe to both our voice and video offerings, caller ID on TV is also available in most areas.
+Added: In early 2021, we launched Call Guard, a new advanced caller ID and robocall blocking solution, for our residential and SMB voice customers.
+Added: Call Guard reduces customer frustration and improves
+Added: security by blocking malicious calls while ensuring our customers continue to receive the legitimate automated calls they need from schools or healthcare providers.
Mobile Services
−Removed: At the end of the second quarter of 2018, we launched our mobile product, Spectrum Mobile, to residential customers under our MVNO reseller agreement with Verizon.
−Removed: We currently offer our Spectrum Mobile service to residential customers subscribing to
−Removed: our Internet service and recently launched mobile service to small and medium business customers.
−Removed: In the second quarter of 2019, we expanded our Spectrum Mobile bring-your-own-device ("BYOD") program across all sales channels to include a broader set of devices which we believe lowers the cost for consumers of switching mobile carriers, and reduces the short-term working capital impact of selling new mobile devices on installment plans.
−Removed: We believe Spectrum-branded mobile services will drive more sales of our core products, create longer customer lives and increase profitability and cash flow over time.
−Removed: As we continue to grow our mobile services, including 5G in 2020, we expect that Spectrum Mobile will require an initial funding period to grow the product as well as negative working capital impacts from the timing of device-related cash flows when we sell the handset or tablet to customers pursuant to equipment installment plans.
−Removed: We plan to use our WiFi network in conjunction with additional unlicensed, and potentially licensed, spectrum to improve network performance and expand capacity to offer consumers a superior mobile service at a lower total cost to us. Further, we have experimental wireless licenses from the Federal Communications Commission ("FCC") that we are utilizing to test next generation mobile services in several service areas around the country.
−Removed: We intend to consider and pursue opportunities in the mobile space which may include the acquisition of licensed spectrum and may include entering into or expanding joint ventures or partnerships with wireless or cable providers which may require significant investment.
+Added: Our Spectrum Mobile service is offered to customers subscribing to our Internet service, and runs on Verizon’s mobile network, combined with Spectrum WiFi.
+Added: In 2020, we launched nationwide 5G service at no incremental cost to our customers enabling them to stream content several times faster and reducing latency when connecting to apps or webpages where 5G coverage exists.
+Added: In addition, we continue to focus on improving the customer experience and integrating our mobile and Internet products, providing improved WiFi speeds and performance using more than 500,000 of our out of home WiFi access points across our footprint.
+Added: In addition, we refreshed our device portfolio with new devices including 5G models from Apple, Google and Samsung that include installment plan and trade-in options along with a bring-your-own-device (“BYOD”) program which lowers the costs for our customers switching to Spectrum Mobile from other mobile operators.
Commercial Services
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Small and Medium Business
−Removed: Spectrum Business ® offers Internet, voice and video services to small and medium businesses over our hybrid fiber coaxial network.
−Removed: In addition, in 2019, we began offering our Spectrum Mobile service to small and medium business customers.
+Added: Spectrum Business offers Internet, voice and video services to SMBs over our hybrid fiber coaxial network.
+Added: In addition, we offer our Spectrum Mobile service to SMB customers.
Spectrum Business includes a full range of video programming and entry-level Internet speeds of 200 Mbps downstream and 10 Mbps upstream in virtually all of our markets.
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Spectrum Business also includes a set of business services including static IP and business WiFi, e-mail and security, and multi-line telephone services with more than 35 business features including web-based service management, that are generally not available to residential customers.
−Removed: Spectrum Enterprise offers more tailored communications products and managed service solutions to larger businesses, as well as high-capacity last-mile data connectivity services to mobile and wireline carriers on a wholesale basis.
−Removed: Spectrum Enterprise's product portfolio includes fiber Internet access, voice trunking services, unified messaging/unified communications (“UM/UC”), Ethernet services that privately and securely connect geographically dispersed client locations, and video solutions designed to meet the needs of hospitality, education, and healthcare clients.
−Removed: In addition, in 2019, Spectrum Enterprise launched an innovative Hybrid Software-Defined Wide Area Network ("SD-WAN") that enables businesses to leverage the performance of Ethernet, the ubiquity of Internet connectivity and the flexibility of a software-defined solution to solve a wide array of business communications and networking challenges.
−Removed: Spectrum Enterprise combines its large, serviceable footprint and robust portfolio of fiber lit buildings with a sizeable partner network to effectively serve enterprise customers nationally.
−Removed: These customers can benefit from obtaining advanced services from a single provider, receiving a consistent solution while simplifying procurement and potentially reducing their costs.
+Added: In 2020, we launched Wireless Internet Backup for our SMB customers throughout our footprint.
+Added: Wireless Internet Backup is designed to enhance and protect Internet service for small- and medium-sized businesses in the event of a network disruption.
+Added: Spectrum Enterprise offers tailored communications products and managed service solutions to larger businesses, as well as high-capacity last-mile data connectivity services to mobile and wireline carriers on a wholesale basis.
+Added: The Spectrum Enterprise product portfolio includes Internet access (fiber, wireless and coax delivered);
+Added: Wide Area Network ("WAN") Solutions including Ethernet;
+Added: SD-WAN and cloud connectivity services that privately and securely connect geographically dispersed customer locations;
+Added: and managed services which address a wide range of enterprise networking and security challenges.
+Added: To meet the communications needs of these more sophisticated customers, Spectrum Enterprise also offers an array of voice trunking services and unified messaging/unified communications solutions.
+Added: In addition, for industries such as hospitality, education and healthcare where specialized video solutions are demanded, Spectrum Enterprise offers a wide range of solutions designed to meet those requirements.
+Added: Spectrum Enterprise serves businesses nationally by combining its large, serviceable footprint and robust portfolio of fiber lit buildings with a significant wholesale partner network.
+Added: As a result, these customers benefit by obtaining advanced communications solutions from a single provider who is committed to an exceptional customer experience and who delivers compelling value by simplifying procurement and potentially reducing their costs.
Advertising Services
−Removed: Our advertising sales division, Spectrum Reach ® , offers local, regional and national businesses the opportunity to advertise in individual and multiple service areas on cable television networks and digital outlets.
+Added: Our advertising sales division, Spectrum Reach, offers local, regional and national businesses the opportunity to advertise in individual and multiple service areas on cable television networks and advanced advertising platforms.
We receive revenues from the sale of local advertising across various platforms for networks such as MTV, CNN and ESPN.
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In other service areas, we enter into representation agreements under which another operator in the area will sell advertising on our behalf.
−Removed: arrangements enable us and our partners to deliver linear commercials across wider geographic areas, replicating the reach of local broadcast television stations to the extent possible.
+Added: These arrangements enable us and our partners to deliver linear commercials across wider geographic areas, replicating the reach of local broadcast television stations to the extent possible.
In addition, we enter into interconnect agreements from time to time with other cable operators, which, on behalf of a number of video operators, sells advertising time to national and regional advertisers in individual or multiple service areas.
Additionally, we sell the advertising inventory of our owned and operated local sports and news channels, of our regional sports networks that carry Los Angeles Lakers’ basketball games and other sports programming and of SportsNet LA, a regional sports network that carries Los Angeles Dodgers’ baseball games and other sports programming.
−Removed: In 2019, we began expanding our deployment of household addressability, which allows for more precise targeting within various parts of our footprint.
−Removed: We also began the roll-out of our Ad Portal, which allows small businesses to purchase local cable advertising and/or creative services via our web portal with no sales personnel interaction at a fee within their budgets.
−Removed: Both products will be more widely deployed in 2020.
−Removed: They join our fully deployed Audience App, which uses our proprietary set-top box viewership data (all anonymized and aggregated) to optimize linear inventory, in our suite of advanced advertising products available to the marketplace.
+Added: In 2020, we continued to expand our deployment of household addressability ("HHA"), which allows for more precise targeting within various parts of our footprint.
+Added: This will be more widely deployed in 2021.
+Added: Additionally in the next year, in conjunction with other MVPD’s, Spectrum Reach will enable affiliated cable networks to deploy HHA on their own inventory in our footprints, charging them an enablement fee.
+Added: We also continued to develop our Ad Portal, which allows small businesses to purchase local cable advertising and/or creative services via our web portal with no sales personnel interaction at a price within their budgets.
+Added: They join our fully deployed Audience App, which uses our proprietary digital receiver viewership data (all anonymized and aggregated) to optimize linear inventory, and Streaming TV, our expanded Ads Everywhere offering which includes inventory on over-the-top streaming content providers, in our suite of advanced advertising products available to the marketplace.
Other Services
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Our local news channels provide 24/7 hyperlocal content, focusing on news, programming and storytelling that addresses the deeper needs and interests of the diverse communities and neighborhoods we serve.
+Added: We also provide the Spectrum News app where customers can read, watch and listen to news stories by our Spectrum News journalists and local partner publications on their mobile device.
Pricing of Our Products and Services
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We typically charge a one-time installation fee which is sometimes waived or discounted in certain sales channels during certain promotional periods.
−Removed: Our Spectrum pricing and packaging ("SPP") generally offers a standardized price for each tier of service, bundle of services, and add-on service in a service area.
+Added: Our Spectrum pricing and packaging generally offers a standardized price for each tier of service, bundle of services, and add-on service in a service area.
We believe SPP:
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• allows for gradual price increases at the end of promotional periods.
−Removed: We sell video and Internet packages with the option to add on voice and mobile services at attractive pricing.
+Added: We sell Internet and video packages with the option to add on voice and mobile services at attractive pricing.
Our mobile customers can choose one of two simple ways to pay for data.
−Removed: Customers can choose an unlimited data plan or a by-the-gig data usage plan.
−Removed: Both plans include free nationwide talk and text and customers can easily switch between mobile data plans during the month.
+Added: Customers can choose from unlimited data plans or by-the-gig data usage plans and pricing includes all taxes and fees.
+Added: All plans include free nationwide talk and text and customers can easily switch between mobile data plans during the month.
Customers can also purchase mobile devices and accessory products and have the option to pay for devices under interest-free monthly installment plans.
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Both our national backbone and regional/metro network components utilize a redundant IP ring/mesh architecture.
−Removed: The national backbone
−Removed: component provides connectivity from regional demarcation points to nationally centralized content, connectivity and services.
+Added: The national backbone component provides connectivity from regional demarcation points to nationally centralized content, connectivity and services.
The regional/metro network components provide connectivity between the regional demarcation points and headends within a specific geographic area and enable the delivery of content and services between these network components.
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In most systems, we deliver our signals via fiber optic cable from the headend to a group of nodes, and use coaxial cable to deliver the signal from individual nodes to the homes served by that node.
−Removed: For our fiber Internet, Ethernet, carrier wholesale, Session Initiation Protocol ("SIP") and Primary Rate Interface ("PRI") Spectrum Enterprise customers, fiber optic cable is extended from individual nodes to the customer’s site.
+Added: For our Spectrum Enterprise customers, fiber optic cable is extended from individual nodes to the customer’s site.
For certain new build and MDU sites, we increasingly bring fiber to the customer site.
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• signal quality and high service reliability.
−Removed: Our systems provide an all-digital platform, leveraging DOCSIS 3.1 technology and bandwidth of 750 megahertz or greater to approximately 100% of our estimated passings.
−Removed: This bandwidth capacity enables us to offer two-way signal capabilities necessary to provide HD television, interactive video services such as VOD, high-speed Internet and voice services.
−Removed: An all-digital platform leveraging DOCSIS 3.1 technology enables us to offer a larger selection of HD channels, Spectrum Internet Gig and better picture quality while providing greater plant security and enabling lower installation and disconnect service truck rolls.
−Removed: We believe this architecture also allows us to continue to enhance our network to enable multi-gigabit services with low latency at a lower incremental capital cost relative to our competitors.
+Added: Our systems provide a two-way all-digital platform, leveraging DOCSIS 3.1 technology and bandwidth of 750 megahertz or greater, to approximately 100% of our estimated passings.
+Added: This bandwidth-rich network enables us to offer a large selection of HD channels and Spectrum Internet Gig while providing greater plant security and enabling lower installation and disconnect service truck rolls.
+Added: We believe as demand for data continues to grow, that with our deployed DOCSIS 3.1 technology, we have the ability to increase speeds and reliability by allocating more of our plant bandwidth to both upstream and downstream IP services in a variety of ways, including moving our video services to MPEG-4 compression, moving more HD video content to switched digital video and more efficiently packaging our non-IP service channels.
+Added: We are also evaluating additional network upgrades that could be made on the increment giving us the ability to offer multi-gigabit downstream speeds and up to one gigabit upstream speeds all in advance of migrating towards the next standard, DOCSIS 4.0, in which we are currently investing with key vendors and industry participants.
+Added: In 2020, we purchased 210 CBRS PALs and intend to use the licenses along with unlicensed CBRS spectrum to build our own 5G mobile network on targeted 5G small cell sites leveraging our HFC network providing power and data connectivity to the majority of the sites.
+Added: These 5G small cells, combined with improving WiFi capabilities, increase speed and reliability along with improving our cost structure.
+Added: During 2021, we will focus on scaling our systems to actively manage traffic on Spectrum Mobile devices using our MVNO, network through WiFi and future 5G mobile network.
+Added: In addition, we plan on deploying some targeted 5G small cell sites which will help us learn how to pace our broader multi-year 5G mobile network build-out based on disciplined cost reduction targets.
+Added: We also participated in phase I of the Rural Digital Opportunity Fund (“RDOF”) auction to further extend our broadband services in states where we currently operate.
+Added: The purpose of Phase I of RDOF was to bring broadband to unserved areas.
+Added: Approximately $9.2 billion was awarded nationwide in Phase I of RDOF through a reverse auction process of which we won a bidding process for $1.2 billion in December 2020.
+Added: We expect to fund our multi-billion dollar fiber-based build-out over a six to eight-year period.
+Added: This investment will allow us to generate long-term infrastructure-style returns by further taking advantage of the efficiencies of the scale and quality of our network and construction capabilities while offering our high quality products and services to more homes and businesses.
+Added: We expect newly-served homes will be enabled to engage in distance learning, remote work, telemedicine and other bandwidth-heavy applications that require high speed broadband connectivity.
+Added: Newly-served rural areas would also benefit from our high-value SPP structure including our voice and mobile offerings, as well as our comprehensive selection of video products.
+Added: The successful and timely execution of such build-out is dependent on a variety of external factors, including the make-ready and utility pole permitting processes.
+Added: With fewer homes
+Added: and businesses in these areas, broadband providers need to access multiple poles per home, as opposed to multiple homes per pole in higher-density settings.
+Added: As a result, pole applications, pole replacement rules and their affiliated issue resolution processes are all factors that can have a significant impact on build-out timing and speed to completion.
+Added: The RDOF auction rules establish construction milestones for the build-out utilizing RDOF funding.
+Added: Failure to meet those milestones could subject the company to financial penalties.
Management, Customer Operations and Marketing
−Removed: Our operations are centralized, with senior executives located at several key corporate offices, responsible for coordinating and overseeing operations, including establishing company-wide strategies, policies and procedures.
+Added: Our operations are centralized, with senior executives responsible for coordinating and overseeing operations, including establishing company-wide strategies, policies and procedures.
Sales and marketing, network operations, field operations, customer operations, engineering, advertising sales, human resources, legal, government relations, information technology and finance are all directed at the corporate level.
Regional and local field operations are responsible for customer premise service transactions and maintaining and constructing that portion of our network which is located outdoors.
+Added: Our field operations strategy includes completing a significant portion of our activity with our employees which we find drives consistent and higher quality services.
+Added: In 2020, our in-house field operations workforce handled approximately 80% of our customer premise service transactions.
We continue to focus on improving the customer experience through enhanced product offerings, reliability of services, and delivery of quality customer service.
As part of our operating strategy, we insource most of our customer operations workload.
−Removed: Our in-house call centers handle over 90% of our total customer service calls.
+Added: Our in-house call centers handle over 90% of our total cable customer service calls.
We manage our customer service call centers centrally to ensure a consistent, high quality customer experience.
In addition, we route calls by call type to specific agents that only handle such call types, enabling agents to become experts in addressing specific customer needs, creating a better customer experience.
−Removed: We implemented a new call center agent desktop interface tool in 2019 which enables virtualization of all call centers thereby better serving our customers.
+Added: Our call center agent desktop interface tool enables virtualization of all call centers thereby better serving our customers.
Virtualization allows calls to be routed across our call centers regardless of the location origin of the call, reducing call wait times, and saving costs.
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Our customer websites and mobile applications enable customers to pay their bills, manage their accounts, order new services and utilize self-service help and support.
−Removed: We sell our residential and commercial services using a national brand platform known as Spectrum, Spectrum Business and Spectrum Enterprise.
+Added: In addition, our self-install program has enabled product installations to continue despite COVID-19 social distancing challenges.
+Added: We sell our residential and commercial services using national brand platforms known as Spectrum, Spectrum Business, Spectrum Enterprise and Spectrum Reach.
These brands reflect our comprehensive approach to industry-leading products, driven by speed, performance and innovation.
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We monitor the effectiveness of our marketing efforts, customer perception, competition, pricing, and service preferences, among other factors, in order to increase our responsiveness to our customers and to improve our sales and customer retention.
−Removed: The marketing organization manages all sales channels including inbound, direct sales, on-line, outbound telemarketing and stores.
−Removed: We believe that offering a wide variety of video programming choices influences a customer’s decision to subscribe and retain our cable video services.
+Added: The marketing organization manages all residential and SMB sales channels including inbound, direct sales, on-line, outbound telemarketing and stores.
+Added: We believe that offering a wide variety of video programming choices influences a customer’s decision to subscribe to and retain our cable video services.
We obtain basic and premium programming, usually pursuant to written contracts from a number of suppliers.
−Removed: Media corporation consolidation has, however, resulted in fewer suppliers and additional selling power on the part of programming suppliers.
+Added: Media corporation and broadcast station group consolidation has, however, resulted in fewer suppliers and additional selling power on the part of programming suppliers.
Although an insignificant amount of our programming budget, recently we have begun entering into agreements to co-produce or exclusively license original content which give us the right to provide our customers with certain exclusive content for a period of time.
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Programming license fees may include “volume” discounts and financial incentives to support the launch of a channel and/or ongoing marketing support, as well as discounts for channel placement or service penetration.
−Removed: For home shopping channels, we typically receive a percentage of the revenue attributable to our customers’ purchases.
+Added: For home shopping channels, we typically receive a percentage of the revenue attributable to our
+Added: customers’ purchases.
We also offer VOD and pay-per-view channels of movies and events that are subject to a revenue split with the content provider.
−Removed: Our programming costs have increased in excess of customary inflationary and cost-of-living type increases.
−Removed: We expect programming costs per customer to continue to increase due to a variety of factors including, annual increases pursuant to our programming contracts, contract renewals with programmers and the carriage of incremental programming, including new services and VOD programming.
+Added: Our programming costs have historically increased in excess of customary inflationary and cost-of-living type increases.
+Added: We expect programming costs per customer to increase due to a variety of factors including, annual increases pursuant to our programming contracts, contract renewals with programmers and the carriage of incremental programming, including new services and VOD programming.
Increases in the cost of sports programming and the amounts paid for broadcast station retransmission consent have been the largest contributors to the growth in our programming costs over the last few years.
−Removed: Additionally, the demands of large media companies who link carriage of their most popular networks to carriage and cost increases of their less popular networks and who require us to carry their most popular networks to a large percentage of our video subscribers, has limited our flexibility in creating more tailored and cost-sensitive programming packages for consumers.
+Added: Additionally, the demands of large media companies who link carriage of their most popular networks to carriage and cost increases of their less popular networks and who require us to carry their most popular networks to a large percentage of our video subscribers, have limited our flexibility in creating more tailored and cost-sensitive programming packages for consumers.
Federal law allows commercial television broadcast stations to make an election between “must-carry” rights and an alternative “retransmission-consent” regime.
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Continuing demands by owners of broadcast stations for cash payments at substantial increases over amounts paid in prior years in exchange for retransmission consent will increase our programming costs or require us to cease carriage of popular programming, potentially leading to a loss of customers in affected service areas.
−Removed: Over the past several years, increases in our video service rates have not fully offset the increases in our programming costs, and with the impact of increasing competition and other marketplace factors, we do not expect the increases in our video service rates to fully offset the increase in our programming costs for the foreseeable future.
+Added: Over the past several years, increases in our video service rates have not fully offset the increases in our programming costs, and with the impact of increasing competition and other marketplace factors, we do not expect the increases in our video service rates to fully offset the increase in our programming costs per customer for the foreseeable future.
Although we pass along a portion of amounts paid for retransmission consent to the majority of our customers, our inability to fully pass programming cost increases on to our video customers has had, and is expected in the future to have, an adverse impact on our cash flow and operating margins associated with our video product.
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To the extent that we are unable to reach agreements with certain programmers on terms that we believe are reasonable, we have been, and may in the future be, forced to remove such programming channels from our line-up, which may result in a loss of customers.
−Removed: We operate in geographically diverse areas which are organized in regional clusters.
−Removed: These regions are managed centrally on a consolidated level.
−Removed: Our eleven regions and the customer relationships within each region as of December 31, 2019 are as follows (in thousands):
−Removed: Total Customer Relationships
−Removed: New York City
−Removed: Southern Ohio
Residential Services
We face intense competition for residential customers, both from existing competitors and, as a result of the rapid development of new technologies, services and products, from new entrants.
−Removed: We face triple play competition, consisting of wireline multichannel video, wireline Internet, and wireline voice service, from three primary competitors, AT&T, Frontier Communications Corporation (“Frontier”) and Verizon.
−Removed: As of December 31, 2019, AT&T, Frontier and Verizon offered these triple play packages in approximately 33%, 7% and 5% of our operating areas, respectively.
−Removed: AT&T also owns DIRECTV, and as a combined company provides video service (via IP or satellite) and voice service (via fixed or wireless) across our entire footprint.
+Added: Internet Competition
+Added: Our residential Internet service faces competition across our footprint from fiber-to-the-home ("FTTH"), fiber-to-the-node ("FTTN"), fixed wireless broadband, Internet delivered via satellite and DSL services.
+Added: AT&T, Frontier Communications Corporation (“Frontier”) fiber optic service (“FiOS" or "Fios") and Verizon’s Fios are our primary FTTH competitors.
+Added: Given the FTTH deployments of our competitors, launches of broadband services offering 1 gigabit per second (“Gbps”) speed have recently grown.
+Added: Several competitors, including AT&T, Frontier FiOS, Verizon's Fios, WideOpenWest, Inc.
+Added: ("WOW") and Google Fiber, deliver 1 Gbps broadband speed in at least a portion of their footprints which overlap our footprint.
+Added: In several markets, we also face competition from one or more fixed wireless providers which deliver point-to-point Internet connectivity, although generally in areas limited to residential MDUs.
+Added: Additionally, several mobile network operators have introduced Long Term Evolution (“LTE”) or 5G delivered fixed wireless home Internet service in a limited number of our markets.
+Added: DSL service is offered across our footprint often at prices lower than our Internet services, although typically at speeds much lower than the minimum speeds we offer as part of SPP.
+Added: In addition, a growing number of commercial areas, such as retail malls, restaurants and airports, offer WiFi Internet service.
+Added: Numerous local governments are also considering or actively pursuing publicly subsidized WiFi Internet access networks.
+Added: These options offer alternatives to cable-based Internet access.
+Added: We face broadband Internet (defined as at least 25 Mbps) competition from three primary competitors, AT&T, Frontier and Verizon in approximately 33%, 8% and 5% of our operating areas, respectively.
Video Competition
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DBS providers offer aggressive promotional pricing, exclusive programming (e.g., NFL Sunday Ticket) and video services that are comparable in many respects to our residential video service.
−Removed: Our residential video service also faces competition from large telecommunications companies, primarily AT&T U-verse, Frontier fiber optic service (“FiOS" or "Fios") and Verizon Fios, which offer wireline video services in significant portions of our operating areas.
−Removed: Our residential video service also faces growing competition from a number of other sources, including companies that deliver linear network programming, movies and television shows on demand and other video content over broadband Internet connections to televisions, computers, tablets and mobile devices.
−Removed: These competitors include virtual multichannel video programming distributors (“V-MVPDs”) such as AT&T TV NOW, Sling TV, YouTube TV and Hulu Live.
−Removed: Other online video business models and products have also developed, some offered by programmers that have not traditionally sold programming directly to consumers, including, (i) subscription video on demand (“SVOD”) services such as Netflix, Apple TV+, Amazon Prime, Hulu Plus, Disney+, HBO Now, CBS All Access, Starz and Showtime Anytime, (ii) ad-supported free online video products, including YouTube and Pluto TV, some of which offer programming for free to consumers that we currently purchase for a fee, (iii) pay-per-view products, such as iTunes and Amazon Instant, and (iv) additional offerings from mobile providers which continue to integrate and bundle video services and mobile products.
+Added: Our residential video service also faces competition from large telecommunications companies, primarily Frontier FiOS and Verizon Fios, which offer wireline video services in significant portions of our operating areas.
+Added: Our residential video service also faces growing competition across our footprint from a number of other sources, including companies that deliver linear network programming, movies and television shows on demand and other video content over broadband Internet connections to televisions, computers, tablets and mobile devices.
+Added: These competitors include virtual multichannel video programming distributors (“V-MVPDs”) such as Hulu Live, YouTube TV, Sling TV, Philo and AT&T TV.
+Added: Other online video business models and products have also developed, some offered by programmers that have not traditionally sold programming directly to consumers, including, (i) subscription video on demand (“SVOD”) services such as Netflix, Apple TV+, Amazon Prime, Hulu Plus, Disney+, HBO Max, Peacock, CBS All Access, Starz and Showtime Anytime, (ii) ad-supported free online video products, including YouTube and Pluto TV, some of which offer programming for free to consumers that we currently purchase for a fee, (iii) pay-per-view products, such as iTunes and Amazon Instant, and (iv) additional offerings from mobile providers which continue to integrate and bundle video services and mobile products.
Historically, we have generally viewed SVOD online video services as complementary to our own video offering, and we have developed a cloud-based guide that is capable of incorporating video from online video services currently offered in the marketplace.
As the proliferation of online video services grows, however, services from V-MVPDs and new direct to consumer offerings, as well as piracy and password sharing, negatively impact the number of customers purchasing our video product.
−Removed: Internet Competition
−Removed: Our residential Internet service faces competition from fiber-to-the-home ("FTTH"), fiber-to-the-node ("FTTN"), DSL and wireless broadband offerings, as well as from a variety of companies that offer other forms of online services, including fixed wireless and satellite-based broadband services.
−Removed: AT&T, Frontier FiOS and Verizon’s Fios are our primary FTTH competitors.
−Removed: Given the FTTH deployments of our competitors, launches of broadband services offering 1 gigabit per second (“Gbps”) speed have recently grown.
−Removed: Several competitors, including AT&T, Frontier FiOS, Verizon's Fios, WideOpenWest Finance, LLC ("WOW") and Google Fiber, deliver 1 Gbps broadband speed in at least a portion of their footprints which overlap our footprint.
−Removed: DSL service is often offered at prices lower than our Internet services, although typically at speeds much lower than the minimum speeds we offer as part of SPP.
−Removed: Various mobile phone companies offer wireless Internet services delivered over networks which they continue to enhance to deliver faster speeds.
−Removed: AT&T, Verizon, Sprint Corporation ("Sprint") and T-Mobile US, Inc.
−Removed: ("T-Mobile") all began deploying fifth generation (5G) mobile services in 2019, although generally in limited geographies, with plans to expand 5G more broadly in 2020.
−Removed: In April 2018, Sprint and T-Mobile announced their intent to merge.
−Removed: If the transaction closes, the resulting company would be one of the nation’s largest mobile carriers bringing increased competition with a stated intent of pursuing broad 5G network deployment and offering fixed wireless broadband service.
−Removed: Some mobile phone companies offer unlimited data packages to customers.
−Removed: In addition, a growing number of commercial areas, such as retail malls, restaurants and airports, offer WiFi Internet service.
−Removed: Numerous local governments are also considering or actively pursuing publicly subsidized WiFi Internet access networks.
−Removed: These options offer alternatives to cable-based Internet access.
Voice Competition
−Removed: Our residential voice service competes with wireless and wireline phone providers, as well as other forms of communication, such as text messaging on cellular phones, instant messaging, social networking services, video conferencing and email.
+Added: Our residential voice service competes with wireless and wireline phone providers across our footprint, as well as other forms of communication, such as text messaging on cellular phones, instant messaging, social networking services, video conferencing and email.
We also compete with “over-the-top” phone providers, such as Vonage, Skype, magicJack, Google Voice and Ooma, Inc., as well as companies that sell phone cards at a cost per minute for both national and international service.
The increase in the number of different technologies capable of carrying voice services and the number of alternative communication options available to customers as well as the replacement of wireline services by wireless have intensified the competitive environment in which we operate our residential voice service.
−Removed: Our mobile service competes with other mobile providers such as Verizon, AT&T, T-Mobile and Sprint, as well as various regional wireless service providers.
+Added: Mobile Competition
+Added: Our mobile service faces competition from national mobile network operators including AT&T, Verizon and T-Mobile US, Inc.
+Added: ("T-Mobile"), as well as a variety of regional operators and mobile virtual network operators.
+Added: Most carriers offer unlimited data packages to customers.
+Added: Various operators also offer wireless Internet services delivered over networks which they continue to enhance to deliver faster speeds.
+Added: In April 2020, Sprint Corporation ("Sprint") and T-Mobile merged resulting in one of the nation’s largest mobile carriers, bringing increased competition with a stated intent of pursuing broad 5G network deployment and offering fixed wireless broadband service.
+Added: AT&T, Verizon and T-Mobile continue to expand 5G mobile services.
+Added: Additionally, in July 2020, in connection with Dish Network Corporation’s acquisition of Sprint’s prepaid mobile services businesses, the FCC and Department of Justice ("DOJ") have imposed a timeline on Dish Network Corporation (70% by June 2023) for 5G network development and expansion.
We also compete for retail activations with other resellers that buy bulk wholesale service from wireless service providers for resale.
Regional Competitors
−Removed: In some of our operating areas, other competitors have built networks that offer video, Internet and voice services that compete with our services.
−Removed: For example, in certain service areas, our residential video, Internet and voice services compete with Google Fiber, Cincinnati Bell Inc., Hawaiian Telcom (owned by Cincinnati Bell Inc.), RCN Telecom Services, LLC, Grande Communications Networks, LLC and WOW.
+Added: In some of our operating areas, other competitors have built networks that offer Internet, video and voice services that compete with our services.
+Added: For example, in certain service areas, our residential Internet, video and voice services compete with Google Fiber, Cincinnati Bell Inc., Hawaiian Telcom (owned by Cincinnati Bell Inc.), RCN Telecom Services, LLC, Grande Communications Networks, LLC and WOW.
Additional Competition
In addition to multi-channel video providers, cable systems compete with other sources of news, information and entertainment, including over-the-air television broadcast reception, live events, movie theaters and the Internet.
−Removed: Competition is also posed by fixed wireless and satellite master antenna television systems, or SMATV systems, serving MDUs, such as condominiums, apartment complexes, and private residential communities.
+Added: Competition is also posed by fixed wireless and satellite master antenna television ("SMATV") systems serving MDUs, such as condominiums, apartment complexes, and private residential communities.
Business Services
We face intense competition across each of our business services product offerings.
−Removed: Our small and medium business video, Internet, networking and voice services face competition from a variety of providers as described above.
+Added: Our SMB Internet, video, networking and voice services face competition from a variety of providers as described above.
Our enterprise solutions also face competition from the competitors described above as well as application-service providers and other telecommunications carriers, such as metro and regional fiber-based carriers.
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The following summary addresses the key regulatory and legislative developments affecting the cable industry and our services for both residential and commercial customers.
−Removed: Cable system operations are extensively regulated by the federal government (primarily the FCC), certain state governments and many local governments.
+Added: Cable systems and related communications networks and services are extensively regulated by the federal government (primarily the FCC), certain state governments and many local governments.
A failure to comply with these regulations could subject us to substantial penalties.
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Congress and the FCC have frequently revisited the subject of communications regulation and they are likely to do so again in the future.
+Added: Changes in legislation, regulation and regulatory enforcement are expected to result from the recent political elections.
We could be materially disadvantaged in the future if we are subject to new laws, regulations or regulatory actions that do not equally impact our key competitors.
+Added: For example, Internet-delivered streaming video services compete with our traditional video service, but they are not subject to the same level of federal, state, and local regulation.
We cannot provide assurance that the already extensive regulation of our business will not be expanded in the future.
−Removed: In addition, we are already subject to Charter-specific conditions regarding certain business practices as a result of the FCC’s approval of the merger in 2016 with Time Warner Cable Inc.
+Added: In addition, we are subject to Charter-specific conditions regarding certain business practices as a result of the FCC’s approval of the merger in 2016 with Time Warner Cable Inc.
("TWC") and acquisition of Bright House Networks, LLC ("Bright House").
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Alternatively, federal law includes “retransmission consent” regulations, by which popular commercial television stations can prohibit cable carriage unless the cable operator first negotiates for “retransmission consent,” which may be conditioned on significant payments or other concessions.
−Removed: Popular stations invoking “retransmission consent” have been demanding substantial compensation increases in their recent negotiations with cable operators, thereby significantly increasing our operating costs.
+Added: Popular stations invoking “retransmission consent” have been demanding
+Added: substantial compensation increases in their recent negotiations with cable operators, thereby significantly increasing our operating costs.
Pole Attachments
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The FCC's approach does not directly affect the rate in states that self-regulate, but many of those states have substantially the same rate for all communications attachments.
−Removed: Some municipalities have enacted “one-touch” make-ready pole attachment ordinances, which permit third parties to alter components of our network attached to utility poles in ways that could adversely affect our businesses.
−Removed: Some of these ordinances have been challenged with differing results.
−Removed: In 2018, the FCC adopted “one-touch” make-ready (“OTMR”) rules that will apply in states where pole attachments are FCC regulated, and they may impact many of our existing pole attachments.
−Removed: Various utilities have sought review of the OTMR rules in federal court.
Cable Rate Regulation
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Given the competitive nature of our markets, the FCC recently rescinded certifications for the relatively few communities where we had been subject to rate regulation.
−Removed: It is possible that the competitive situation could change, and that some local franchising authorities may be certified to regulate rates in the future, and existing and potential laws and regulations may affect our marketing practices (including our disclosure and itemization of subscriber fees).
+Added: It is possible that this rescission could be reversed, the competitive situation could change, and that some local franchising authorities may be certified to regulate rates in the future.
+Added: In addition, the Television Viewer Consumer Protection Act of 2019 and other existing and potential laws and regulations may affect our marketing practices (including our disclosure and itemization of subscriber fees).
Other FCC Regulatory Matters
−Removed: The Communications Act and FCC regulations cover a variety of additional areas, including, among other things:
−Removed: (1) licensing of systems and facilities;
+Added: The Communications Act and FCC regulations cover a variety of additional areas applicable to our video services, including, among other things:
+Added: (1) licensing of systems and facilities, including the grant of various spectrum licenses;
(2) equal employment opportunity obligations;
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Each of these regulations restricts our business practices to varying degrees and may impose additional costs on our operations.
−Removed: Further, the FCC regulates spectrum usage and other communications enterprises in ways that could impact our operations.
−Removed: For example, the FCC is currently considering proposals to reallocate certain spectrum for new wireless communications purposes, which could be disruptive to the satellite platform we rely upon to provide our video services.
−Removed: The FCC is also preparing to make additional spectrum available for commercial services, which we might use to deliver services in the future.
+Added: The FCC regulates spectrum usage in ways that could impact our operations.
+Added: For example, the FCC has adopted a plan to reallocate certain spectrum for new wireless communications purposes, which could be disruptive to the satellite platform we rely upon to provide our video services.
+Added: The FCC is also preparing to make additional spectrum available for commercial services, which we might acquire to deliver services in the future.
Our ability to access and use such spectrum is uncertain and may be limited by further FCC auction or allocation decisions.
−Removed: It is possible that Congress or the FCC will expand or modify its regulation of cable systems in the future, and we cannot predict at this time how that might impact our business.
+Added: New spectrum obtained by other parties could also lead to additional wireless competition to our existing and future services.
+Added: It is possible that Congress or the FCC will expand or modify its regulation of cable systems and competing services in the future, and we cannot predict at this time how that might impact our business.
Cable systems are subject to a federal compulsory copyright license covering carriage of television and radio broadcast signals.
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For example, federal law imposes a 5% cap on franchise fees.
−Removed: In August 2019, the FCC clarified that in-kind contribution requirements set forth in cable franchises are subject to the statutory cap on franchise fees, and it reaffirmed that state and local authorities are barred from imposing duplicative franchise and/or fee requirements on franchised cable systems providing non-cable services.
+Added: In 2019, the FCC clarified that in-kind contribution requirements set forth in cable franchises are subject to the statutory cap on franchise fees, and it reaffirmed that state and local authorities are barred from imposing duplicative franchise and/or fee requirements on franchised cable systems providing non-cable services.
An appeal of the FCC’s order is pending in federal court.
A number of states have adopted franchising laws that provide for statewide franchising.
−Removed: Generally, state-wide cable franchises are issued for a fixed term, but streamline many of the traditional local cable franchise requirements and eliminate local negotiation.
+Added: Generally, state-wide cable franchises are issued for a fixed term, streamline many of the traditional local cable franchise requirements and eliminate local negotiation.
The Communications Act provides for an orderly franchise renewal process in which granting authorities may not unreasonably deny renewals.
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In 2015, the FCC reclassified broadband Internet access services as “telecommunications service” and, on that basis, imposed a number of “net neutrality” rules governing the provision of broadband service.
−Removed: In 2017, the FCC reversed its 2015 decision.
−Removed: The Commission's 2017 Order restored the “information service” classification and eliminated the 2015 rules, other than a transparency requirement, which
−Removed: created an obligation to disclose performance statistics and other service information to consumers.
−Removed: The 2017 FCC decision also ruled that state regulators may not impose obligations similar to federal network neutrality obligations that the FCC eliminated.
−Removed: In 2019, the U.S.
−Removed: Court of Appeals for the District of Columbia upheld the FCC’s information service reclassification, but vacated the FCC’s blanket prohibition of state utility regulation of broadband services.
−Removed: The court left open the possibility that individual state laws could be deemed preempted on a case by case basis if it is shown that they conflict with federal law.
−Removed: We understand that this decision may be subject to further judicial review.
−Removed: Several states (including California) have already adopted state obligations, and additional states may consider the imposition of new regulations on our Internet services, such as rules similar to the network neutrality requirements that were eliminated by the FCC.
−Removed: California’s legislation has been challenged in court, and we cannot predict how the challenge to California’s legislation or challenges to any future state legislation will be resolved.
−Removed: As recent history has shown, it is possible that the FCC might further revise its approach to broadband Internet access, or that Congress might enact legislation affecting the rules applicable to the service.
+Added: In 2017, the FCC reversed its 2015 decision and eliminated the 2015 rules, other than a transparency requirement, which obligates us to disclose performance statistics and other service information to consumers.
+Added: It is possible that the FCC might again revise its approach to broadband Internet access, or that Congress might enact legislation affecting the rules applicable to the service.
The application of new legal requirements to our Internet services could adversely affect our business.
+Added: The 2017 FCC decision reclassifying Internet access services also ruled that state regulators may not impose obligations similar to federal network neutrality obligations that the FCC eliminated but this blanket prohibition was vacated by the U.S.
+Added: Court of Appeals in 2019.
+Added: The court left open the possibility that individual state laws could be deemed preempted on a case by case basis if it is shown that they conflict with federal law.
+Added: Several states (including California) have adopted state obligations, and additional states may consider the imposition of new regulations on our Internet services, such as rules similar to the network neutrality requirements that were eliminated by the FCC.
+Added: California’s legislation has been challenged in court, and we cannot predict how the challenge to California’s legislation or challenges to other state legislation will be resolved.
In recent years, the FCC has demonstrated an interest in accelerating advancements in, and deployment of, wired and wireless broadband infrastructure, including advanced 5G wireless service.
−Removed: For example, the FCC and some state regulatory commissions direct certain subsidies to telephone and other companies deploying broadband to areas deemed to be “unserved” or “underserved.” We have opposed such subsidies when directed to areas that we serve.
−Removed: However, continued regulatory efforts to accelerate competitive wireline and wireless broadband deployment, including reforms that create regulatory imbalances, could adversely affect our business.
−Removed: Aside from the FCC’s generally applicable regulations, we have made certain commitments to comply with the FCC’s order in connection with the FCC’s approval of the merger with TWC and acquisition of Bright House (discussed below).
+Added: For example, the FCC and many states offer subsidies to companies deploying broadband to areas deemed to be “unserved” or “underserved,” including the recently concluded RDOF auction.
+Added: We have sought subsidies for our own broadband construction in unserved areas, and we have opposed such subsidies when directed to areas that are already served.
+Added: Government efforts to subsidize areas that we already serve create regulatory imbalances that could adversely affect our business.
+Added: Aside from the FCC’s generally applicable regulations, we made certain commitments to comply with the FCC’s order in connection with the FCC’s approval of the merger with TWC and acquisition of Bright House.
Wireline Voice Service
−Removed: The FCC has never classified the VoIP telephone services we offer as “telecommunications services” that are subject to traditional federal common carrier regulation, but instead has imposed some of these requirements on a case-by-case basis, such as requirements relating to 911 emergency services (“E911”), Communications Assistance for Law Enforcement Act ("CALEA") (the statute governing law enforcement access to and surveillance of communications), Universal Service Fund contributions, customer privacy and Customer Proprietary Network Information protections, number portability, network outage reporting, rural call completion, disability access, regulatory fees, back-up power obligations, and discontinuance of service.
+Added: The FCC has never classified the VoIP wireline telephone services we offer as “telecommunications services” that are subject to traditional federal common carrier regulation, but instead has imposed some of these requirements on a case-by-case basis, such as requirements relating to 911 emergency services (“E911”), Communications Assistance for Law Enforcement Act ("CALEA") (the statute governing law enforcement access to and surveillance of communications), Universal Service Fund contributions, customer privacy and Customer Proprietary Network Information protections, number portability, network outage reporting, rural call completion, disability access, regulatory fees, back-up power obligations, robocall mitigation and
+Added: discontinuance of service.
It is possible that the FCC or Congress will impose additional requirements on our VoIP telephone services in the future.
−Removed: Although we believe that VoIP telephone services should be governed only by federal regulation, some states have attempted to subject cable VoIP services to state level regulation, and at least one state has asserted jurisdiction over our VoIP services.
−Removed: We prevailed on a legal challenge to that state’s assertion of jurisdiction, which was affirmed by a federal appellate court, but that ruling is limited to the seven states in that circuit.
+Added: Our VoIP telephone services are also subject to certain state and local regulatory fees such as E911 fees and contributions to state universal service funds.
+Added: Although we believe that VoIP telephone services should otherwise be governed only by federal regulation, some states have attempted to subject cable VoIP services to state level regulation, and at least one state has asserted jurisdiction over our VoIP services.
+Added: We prevailed on a legal challenge to that state’s assertion of jurisdiction, which was affirmed by a federal appellate court, but that ruling is limited to the seven states in the 8 th circuit.
Although we have registered with, or obtained certificates or authorizations from the FCC and the state regulatory authorities in those states in which we offer competitive voice services in order to ensure the continuity of our services, it is unclear whether and how these and other ongoing regulatory matters ultimately will be resolved.
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Our Spectrum Mobile service offers mobile Internet access and telephone service.
−Removed: We provide this service as an MVNO using Verizon’s network and our network of Spectrum Wi-Fi hotspots.
+Added: We provide this service as an MVNO using Verizon’s network and our network through Spectrum WiFi.
As an MVNO, we are subject to many of the same FCC regulations that apply to facilities-based wireless carriers, as well as certain state or local regulations, including (but not limited to):
−Removed: E911, local number portability, customer privacy, CALEA, universal service fund contribution, and hearing aid compatibility and safety and emission requirements for mobile devices.
+Added: E911, local number portability, customer privacy, CALEA, universal service fund contribution, robocall mitigation and hearing aid compatibility and safety and emission requirements for mobile devices.
Spectrum Mobile’s broadband Internet access service is also subject to the FCC’s transparency rule.
1 unchanged sentence
Privacy and Information Security Regulation
−Removed: The Communications Act limits our ability to collect, use, and disclose customers’ personally identifiable information for our video, voice, and Internet services.
+Added: The Communications Act limits our ability to collect, use, and disclose customers’ personally identifiable information for our Internet, video and voice services.
We are subject to additional federal, state, and local laws and regulations that impose additional restrictions on the collection, use and disclosure of consumer information.
−Removed: All broadband providers are also obliged by CALEA
−Removed: to configure their networks in a manner that facilitates the ability of state and federal law enforcement, with proper legal process authorized under the Electronic Communications Privacy Act, to obtain records and information concerning our customers, including the content of their communications.
+Added: All broadband providers are also obliged by CALEA to configure their networks in a manner that facilitates the ability of state and federal law enforcement, with proper legal process authorized under the Electronic Communications Privacy Act, to obtain records and information concerning our customers, including the content of their communications.
Further, the FCC, Federal Trade Commission (“FTC”), and many states regulate and restrict the marketing practices of communications service providers, including telemarketing and sending unsolicited commercial emails.
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Various security standards provide guidance to telecommunications companies in order to help identify and mitigate cybersecurity risks.
−Removed: One such standard is the voluntary framework released by the National Institute for Standards and Technologies (“NIST”) in 2014 and updated in 2018, in cooperation with other federal agencies and owners and operators of U.S.
+Added: One such standard is the voluntary framework released by the National Institute for Standards and Technology (“NIST”) in 2014 and updated in 2018, in cooperation with other federal agencies and owners and operators of U.S.
critical infrastructure.
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Several government agencies have encouraged compliance with the NIST cybersecurity framework, including the FCC, which is also considering expansion of its cybersecurity guidelines or the adoption of cybersecurity requirements.
+Added: We voluntarily follow NIST as part of our overall cybersecurity program.
Many states and local authorities have considered legislative or other actions that would impose restrictions on our ability to collect, use and disclose, and safeguard certain consumer information, particularly with regard to our broadband Internet business.
−Removed: For example, the California Consumer Privacy Act and Maine’s Act to Protect Privacy of Online Customer Information are both scheduled go into effect in 2020.
−Removed: The California law will, under certain circumstances, regulate companies’ use and disclosure of the personal information of California residents and authorizes enforcement actions by the California Attorney General and private class actions for data breaches.
+Added: For example, the California Consumer Privacy Act ("CCPA") and Maine’s Act to Protect Privacy of Online Customer Information both became effective in 2020.
+Added: The CCPA, under certain circumstances, regulates companies’ use and disclosure of the personal information of California residents and authorizes enforcement actions by the California Attorney General and private class actions for data breaches.
+Added: In addition, effective January 1, 2023, the California Consumer Privacy Rights Act (“CPRA”), adopted by ballot initiative in 2020, will amend the CCPA to impose additional obligations on
+Added: companies that handle the personal information of California residents.
The Maine law regulates how Internet service providers use and disclose customers’ personal information and requires Internet service providers to take reasonable measures to protect customers’ personal information.
−Removed: We expect state and local efforts to regulate consumer privacy to continue in 2020.
−Removed: Additionally, several state legislatures are considering the adoption of new data security and cybersecurity legislation that could result in additional network and information security requirements for our business.
−Removed: We expect such state activity to increase as a result of the recent U.S.
−Removed: Court of Appeals decision that, while affirming the FCC’s reclassification of Internet access as an “information service,” vacated the FCC’s blanket prohibition of state regulation of broadband service and instead left open the possibility that individual state laws could be deemed preempted on a case by case basis if it is shown that they conflict with federal law.
−Removed: There are also bills pending in both the U.S.
−Removed: House of Representatives and Senate that could impose new privacy and data security obligations.
+Added: Several other state legislatures are considering the adoption of new data security and cybersecurity legislation that could result in additional network and information security requirements for our business.
+Added: Congress may also adopt new privacy and data security obligations.
We cannot predict whether any of these efforts will be successful or preempted, or how new legislation and regulations, if any, would affect our business.
3 unchanged sentences
• Offer settlement-free Internet interconnection to any party that meets the requirements of our Interconnection Policy (available on Charter’s website) on terms generally consistent with the policy for seven years (with a possible reduction to five years from FCC approval in 2016).
+Added: Pursuant to a judgment by the Federal Appeals Court for the D.C.
+Added: Circuit, this condition became invalid in October 2020;
• Deploy and offer high-speed broadband Internet access service to an additional two million locations over five years.
−Removed: Refrain from charging usage-based prices or imposing data caps on any fixed mass market broadband Internet access service plans for seven years (with a possible reduction to five);
+Added: We reported to the FCC in October 2020 that this condition had been satisfied;
+Added: • Refrain from charging usage-based prices or imposing data caps on any fixed mass market broadband Internet access service plans for seven years;
• Offer 30/4 Mbps discounted broadband where technically feasible to eligible customers throughout our service area for four years from the offer’s commencement.
+Added: Pursuant to a judgment by the Federal Appeals Court for the D.C.
+Added: Circuit, this condition became invalid in October 2020;
• Continue to provide CableCARDs to any new or existing customer upon request for use in third-party retail devices for four years and continue to support such CableCARDs for seven years (in each case, unless the FCC changes the relevant rules).
+Added: The obligation to continue to provide CableCARDs expired in May 2020.
The FCC conditions also contain a number of compliance reporting requirements.
DOJ Conditions
−Removed: The Department of Justice (“DOJ”) Order prohibits us from entering into or enforcing any agreement with a video programmer that forbids, limits or creates incentives to limit the video programmer’s provision of content to online video distributors ("OVDs").
−Removed: We will not be able to avail ourself of other distributors’ most favored nation (“MFN”) provisions if they are inconsistent with this prohibition.
+Added: The DOJ Order prohibits us from entering into or enforcing any agreement with a video programmer that forbids, limits or creates incentives to limit the video programmer’s provision of content to online video distributors ("OVDs").
+Added: We will not be able to avail ourselves of other distributors’ most favored nation ("MFN") provisions if they are inconsistent with this prohibition.
The DOJ’s conditions are effective for seven years after entry of the final judgment in 2016, although we may petition the DOJ to eliminate the conditions after five years.
+Added: We do not currently expect to so petition.
State Conditions
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• Complying with reporting requirements.
+Added: We believe we have either completed or are on track to complete these state requirements.
+Added: Human Capital Management
+Added: Successful execution of our strategy is dependent on attracting, developing and retaining key employees and members of our management team.
+Added: We believe the substantial skills, experience and industry knowledge of our employees and our training of our customer-facing employees benefit our operations and performance.
+Added: There are several ways in which we attract, develop, and retain highly qualified talent, including:
+Added: • Training and investing in our employees to be masters of their craft.
+Added: With competitive wages, robust healthcare benefits, a generous retirement program with company match, and opportunities for job training and advancement, our employees develop skills and expertise necessary to build careers.
+Added: Our Broadband Technician Apprenticeship Program is one of our promising strategies for building our skilled workforce.
+Added: This program, certified by the U.S.
+Added: Department of Labor, is aligned with our broadband technician career progression and includes thousands of hours of on-the-job training along with classroom instruction.
+Added: When enrolled employees complete the program, they are certified broadband technicians.
+Added: The majority of our employees are customer-facing, interacting with thousands of people every day.
+Added: In April 2020, we increased our minimum wage from $15 to $16.50 per hour and committed that in 2022 all hourly employees will have a minimum starting rate of $20 per hour.
+Added: A $20 per hour minimum wage will enable us to build and retain our highly skilled workforce.
+Added: • Driving a diverse and inclusive culture.
+Added: We are committed to diversity and inclusion in every aspect of our business.
+Added: As we strive to deliver high-quality products and services that exceed our customers’ expectations, we embrace the unique perspectives and experiences of our employees and partners and the communities we serve.
+Added: Our diversity and inclusion efforts are guided by our Executive Steering Committee, External Diversity & Inclusion Council and Diversity & Inclusion team.
+Added: Charter’s Board of Directors also reviews diversity and inclusion progress annually.
+Added: We are striving to enhance diversity at every level of our organization, including among our senior leaders.
+Added: In 2019, we launched five Business Resource Groups (“BRGs”) focused on disability, LGBTQ, multicultural, veterans and women.
+Added: These voluntary groups connect employees with shared characteristics, life experiences, and interests, and enable them to engage in activities that advance our culture of inclusion and contribute to business success.
+Added: BRGs empower our team members to grow and succeed by providing networking, mentorship and skill-building opportunities.
+Added: We are also building momentum with our Charter Inclusion Talks (the "Talks"), which is an internal speaker series built around cultural heritage and identity.
+Added: The Talks, which are held across our footprint, raise awareness of the many identities and heritages that contribute to our success.
+Added: • Focusing on a safe and healthy workplace.
+Added: We value our employees and are committed to providing a safe and healthy workplace.
+Added: All employees are required to comply with company safety rules and expectations, and are expected to actively contribute to making our company a safer place to work.
+Added: In response to COVID-19, as one of the Federal Emergency Management Agency's community lifeline sectors, we continue to maintain operations while employing the latest Center for Disease Control and Prevention ("CDC") guidelines to promote the health of our employees.
As of December 31, 2020, we had approximately 96,100 active full-time equivalent employees.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.