Charter Communications facts for kids
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| Industry | Telecommunications Mass media (Internet) |
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| Founded | 1993 in St. Louis, Missouri, U.S. | ||
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U.S.
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Area served
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41 states | ||
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Key people
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| Products |
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| Brands | Spectrum | ||
| Revenue |  US$54.61 billion (2023) |
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Operating income
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US$12.56 billion (2023) |
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 US$5.26 billion (2023) |
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| Total assets | US$147.2 billion (2023) |
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| Total equity | US$14.72 billion (2023) |
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Number of employees
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c. 101,100 (2023) | ||
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Charter Communications, Inc. is a big American company that provides telecommunications and mass media services. You might know their services by the brand name Spectrum.
Charter is one of the largest cable TV companies in the United States. They have over 32 million customers in 41 states. This makes them the biggest cable operator in the U.S. by how many people subscribe. They are also a major provider of pay TV and the fifth-largest telephone provider for homes.
In 2012, Charter moved its main office from St. Louis, Missouri, to Stamford, Connecticut. In 2016, Charter bought two other large companies, Time Warner Cable and Bright House Networks. This made them one of the biggest pay TV services in the country. Charter is also a very large company by total money earned, ranking high on the Fortune 500 list.
How Charter Communications Started and Grew
Early Days: 1980s and 1990s
Charter Communications began in 1980. It was founded by Charles H. Leonard in Michigan. Over time, the company grew by joining with and buying other smaller cable companies.
In 1993, Barry Babcock, Jerald Kent, and Howard Wood officially brought Charter together. They were former leaders from another cable company in St. Louis, Missouri.
By 1997, Charter started working with EarthLink to offer fast Internet through cable modems. This was a new and exciting technology at the time. In 1998, a famous businessman named Paul Allen (who helped start Microsoft) bought a major part of Charter. By that year, Charter had one million customers.
Going Public and Expanding: 1999-2008
In November 1999, Charter Communications became a public company. This means its shares could be bought and sold on the Nasdaq stock exchange. At this point, Charter had grown to 3.9 million customers.
Charter continued to grow quickly by buying many other cable companies. They added hundreds of thousands of customers across different states. They also traded customers with other companies like AT&T Corporation to make their service areas more organized.
In 2001, Charter teamed up with MSN to offer online content to its Internet customers. The company also won several awards for its growth and innovation.
Facing Challenges and Rebuilding: 2009
In 2009, Charter Communications faced a big financial challenge. They announced plans to file for Chapter 11 bankruptcy. This is a legal process that helps a company reorganize its finances and pay its debts. It also meant that the company's existing shareholders would lose their ownership.
Charter filed for bankruptcy in March 2009. This plan helped them reduce their debt by $8 billion and get new investments. By November 2009, Charter successfully came out of bankruptcy, even though some of its lenders were not happy with the plan.
New Leadership and Growth: 2010-2014
After reorganizing, Charter's stock was listed on the Nasdaq again in September 2010. In 2011, Paul Allen stepped down as chairman, but he remained a large shareholder.
A new leader, Thomas M. Rutledge, became the CEO in February 2012. Under his leadership, Charter continued to grow. In 2013, Charter bought some cable systems from Cablevision, adding 375,000 customers in states like Colorado, Utah, Wyoming, and Montana.
Also in 2013, Liberty Media, a company led by John C. Malone, became the largest single owner of Charter. This was a big investment that showed confidence in Charter's future.
Major Mergers: Time Warner Cable and Bright House Networks
In 2014, Charter wanted to buy Time Warner Cable, a much larger rival. After a few tries, Time Warner Cable instead agreed to merge with Comcast. However, that deal didn't go through because of concerns from government regulators.
Then, in March 2015, Charter announced plans to buy Bright House Networks for $10.4 billion. This deal depended on other approvals.
Finally, on May 26, 2015, Charter and Time Warner Cable announced they would merge in a huge deal worth $78.7 billion. Charter also confirmed it would still buy Bright House Networks. These mergers were approved by the government in April 2016, with some conditions. For example, Charter could not charge customers extra based on how much data they used. They also had to expand their services to two million new homes.
The mergers were completed on May 18, 2016. This made Charter the third-largest pay television company in the United States.
Recent Developments: 2017-Present
In 2017, there were talks about Verizon Communications possibly buying Charter, but Charter decided the offer was too low. Also, Charter and Comcast agreed to explore working together on wireless services.
In March 2017, a union representing 1,800 Charter employees went on strike. They were concerned about changes to their health and pension benefits. The strike lasted for a long time, ending in April 2022.
Challenges in New York
In 2018, the New York Public Service Commission (a government group) fined Charter. They said Charter had not met its promises to expand high-speed Internet service to new homes in New York after buying Time Warner Cable. The commission even threatened to take away Charter's right to operate in New York.
After some discussions and legal threats, Charter agreed to new conditions in April 2019. They had to complete their expansion to 145,000 new homes by September 2021 and contribute money to help expand broadband in other areas.
Streaming and Disney Dispute
In April 2022, Charter and Comcast announced they would work together on a new streaming platform. This means they are creating new ways for people to watch TV and movies online.
In July 2023, Charter changed its cable TV packages. They started offering options where customers could choose to pay less if they didn't want sports channels. This was a way to help people who were "cutting the cord" (canceling traditional cable TV).
However, this led to a big disagreement with Disney. On August 31, 2023, ESPN and other Disney channels were removed from Charter Spectrum. This meant customers couldn't watch important sports events. The dispute ended on September 11, 2023. As part of the agreement, Disney allowed Spectrum customers to get ESPN+ and Disney+ streaming services directly. Some channels were also removed from Spectrum's lineup.
How Charter Operations Work
Current Operations
Where Charter Provides Service
Charter Communications serves about 32 million people in 41 states across the U.S.
In November 2013, Charter changed the name of its home services to Charter Spectrum. They also upgraded their network to be all-digital for video, voice, and Internet. While they mostly use coaxial cable, they are also using newer fiber-optic systems. Fiber-optic cables can deliver much faster Internet speeds.
Charter also has a part of its business called Spectrum Reach. This group handles local advertising on TV in 36 states.
Customer Service Centers
Charter has many call centers where customers can get help. In 2006, they reorganized some of these centers. Some were changed to handle different types of calls, like technical support or dispatching service trucks.
Charter also uses some outside companies to help with customer calls, including centers in Canada, Honduras, and the Philippines. However, in 2016, Charter announced it would add 20,000 new jobs in the United States, many of which would be in call centers.
Past Operations
Over the years, Charter has also sold off some of its cable systems in different states. For example, in 2006, they sold systems in Nevada, Colorado, New Mexico, and Utah. They also sold systems in West Virginia, Virginia, Kentucky, and Illinois. However, Charter later returned to some of these areas when they acquired Time Warner Cable in 2016.
In 2008 and 2010, Charter sold more parts of its system to other companies in states like Minnesota, Alabama, Arkansas, and Texas.
See also
- List of United States telephone companies
- List of cable television companies
- List of Connecticut companies
- Spectrum Sports
- Spectrum News
- SportsNet LA
