Charter’s high-speed Internet business
In the second quarter, Charter Communications (CHTR) added 218,000 residential net broadband subscribers. However, its second-quarter additions number fell ~5.2% YoY (year-over-year). In the second quarter of 2017, the company had gained 230,000 residential net broadband subscribers.
During the Bank of America Merrill Lynch Media, Communications & Entertainment Conference held on September 6, Christopher L. Winfrey, Charter’s CFO, was asked about the company’s plans to combat competition in the broadband business. Winfrey stated that the company has raised its minimum Internet speed from 100 Mbps (megabits per second) to 200 Mbps in nearly 40.0% of its footprint at no added cost to its customers.
In addition, Charter is aggressively deploying 1 Gbps (gigabits per second) speeds via DOCSIS 3.1 technology. On June 30, the company offered gigabit services in nearly 60.0% of its footprint and expects to finish its full upgrade to DOCSIS 3.1 by the end of this year at a low cost.
US Internet market
Comcast (CMCSA) is the country’s largest cable company. On June 30, it had the largest Internet subscriber base of 24.4 million residential broadband subscribers. Charter Communications, the second-largest cable company in the United States, reached 23.1 million residential Internet subscribers on June 30, up ~4.8% year-over-year.
AT&T (T) has the country’s third-largest Internet customer base with 15.8 million broadband subscribers. Verizon (VZ) has the fourth-largest Internet customer base with 7.0 million broadband customers.