Charter’s high-speed Internet business
A core growth driver of Charter Communications’ (CHTR) residential service component in the second quarter was its high-speed Internet business. Charter continues to be optimistic about the business’s growth trajectory, as high-speed Internet demand is growing as people are migrating to Internet television services such as Alphabet’s (GOOGL) YouTube TV, Amazon (AMZN) Prime Video, and Netflix (NFLX). In the second quarter, Charter Communications added 218,000 residential net broadband customers, representing a 5.2% fall YoY (year-over-year) from 230,000.
Charter focuses on Internet speeds
Charter has improved its Internet speeds, now offering minimum download speeds of 100 Mbps (megabits per second) across its footprint. On June 30, the company also raised its minimum Spectrum Internet speed to 200 Mbps in ~40% of its footprint at no additional cost to customers. Furthermore, Charter has been aggressively deploying 1 Gbps (gigabit per second) speeds via DOCSIS 3.1 technology. As of June 30, the company was offering gigabit services in ~60% of its footprint, and is looking forward to finishing its full upgrade to DOCSIS 3.1 by the end this year at a very low cost.
US Internet market
As of June 30, Comcast (CMCSA) had the largest Internet customer base in the United States, with 24.4 million residential broadband customers. Charter, the second-largest cable company, reached 23.1 million residential Internet customers at the end of June, representing a ~4.8% rise YoY. AT&T (T) had the third-largest Internet subscriber base, with 15.8 million broadband customers, and Verizon (VZ) had the fourth-largest base, with 7.0 million broadband subscribers.