Download the February 2012 Comcast (Independence) Newsletter

January 24^thbrought arguably our most successful Cable Day at the Capitol ever.  MCTA’s Cable Day is an early highlight of the legislative Session.  Charter Production crews readied the Thomas Hart Benton Gallery and the House Hearing Room for taping of MCTA’s Outlook Missouri program and PSA’s  and the action began.  Statewide elected officials, along with Senate and House leadership, were interviewed by Kansas City’s own TV talent, Jill Jensen Chadwick.  Varied discussion topics included Pseudoephedrine abuse, criminal sentence reform, unclaimed property, securities protection, education, and state budget challenges.  Senators who were not running for election in 2012 participated in public service announcement tapings.

A newcomer to the Cable Day process was Merrell University of Beauty Arts and Science.  Licensed cosmetology students did a tremendous job applying makeup to the interview guests.  We thank them for a job well done.

MCTA member company representatives used the day to make legislative contacts and networking.  Lunch in the Capitol Rotunda was, again, a hit.  Donita’s Catering served a delicious three-entrée feast, with all the trimmings to over 550 guests.  Debbie Nelson and Angie O’Bryan, Charteremployees, were an integral part of Cable Day, keeping the participants on schedule.

The evening brought additional festivities with a reception at DoubleTree Hotel, serving smoked salmon, anti pasto, scallops, sesame chicken, shrimp and mushrooms.  Former St. Louis Cardinal pitcher, Danny Cox, served as the evening’s celebrity.  Cox pitched for the Cardinals from 1983 to 1988, winning games in both the 1985 and 1987 National League Championships.  He was the winning pitcher in game 5 of the 1987 World Series.  Members, legislators, staff and guests lined up for autographs of baseballs and pictures.

Outgoing Board Chairman Mike Zarrilli, Suddenlink, was presented a gavel and plaque for his leadership and service to the Association.  Recent retiree Maurice Zion, Windjammer, received a plaque for his many years of dedicated service to the Board.

MCTA board members and other invited guests enjoyed a late dinner at O’Donoghue’s Steaks & Seafood.

Many thanks to all involved in making Cable Day at the Capitol a huge success!  The weather accommodated us, as well, by providing a picture perfect for January!

The Mehlville School District will save approximately $550,000 over the next five years by extending its contract for internet services with Charter Communications.

The school board approved the five-year extension Thursday with $110,616 in annual savings, according to Chief Financial Officer Noel Knobloch. The district is currently paying $239,616 a year for Charter’s services and will start paying $129,000 when the old contract expires in July 2012.

Charter installed a fiber network that provided one gigabyte of connectivity to 14 district buildings in 2002. The network provides internet and phone systems throughout the district.

Director of Information Technology Steven Lee said that the savings are because Charter has recouped their expenses on the fiber network installation.

“It did not make much sense to spend district money to do bids on this,” Superintendent Eric Knost said. “That would talk about running new fiber throughout the district; Charter owns the fiber that runs through our district. Other companies had already told us they wouldn’t bid because they couldn’t touch the price.”

The new contract provides a six gigabyte upgrade to the district and a one gigabyte upgraded system to the Jefferson Barracks maintenance building. Lee said the building has poor connectivity and frequently dropped phone calls.

The contract with Charter can also be adjusted based on the district’s new 1:1 technology pilot program, which gave laptops to students in two freshman Communication Arts classes.

“When we double or triple our number of devices… we have the option to go back and add to this. If we need to double up our connection speeds to Oakville High School, we can,” Lee said.

Knost said at least a portion of the savings would be reinvested into technology.

“If you compare that to what you pay at home right now, it’s probably 80 percent cheaper, in fact it’s less than 3 cents a day for every employee and (student). When you put it in that perspective, this really is a pretty good price,” board member Mark Stoner said at Thursday’s meeting.

Download the January 2012 Comcast (Independence) Newsletter

Flagship service tier increased to 30 Mbps download with 4 Mbps upload

St. Louis, Missouri – A study conducted earlier this year1 predicts the number of devices connected to IP networks will be double the global population in 2015. It was 2009 when Charter Communications, Inc. (NASDAQ: CHTR) first increased Internet speeds for its customers at no cost, and today the company did it again for a fourth time – increasing download speeds and at least doubling upload speeds on its most popular Internet service tiers at no additional cost.
Charter is answering the call from more users, devices, streams and apps seeking Internet connectivity with faster upload and download speeds, greater reliability and a superior experience.

In markets where Charter has deployed DOCSIS 3.0 technology, or approximately 95 percent of its Internet service area, the company is increasing Charter Internet Express download speeds from 12 megabits per second (Mbps) to up to 15 Mbps, and increasing upload speeds from 1 Mbps to up to 3 Mbps. Charter Internet Plus download speeds are being increased from 18 Mbps to up to 30 Mbps, and upload speeds are being increased from 2 Mbps to up to 4 Mbps. Charter’s fastest residential offering is increasing from 60 Mbps download to up to 100 Mbps download/5 Mbps upload, and has been renamed Charter Internet Ultra100 to reflect the significant enhancement. Express and Plus speeds are also increasing in the remaining portions of Charter’s service areas nationwide.

“The Internet is changing the way we watch TV, communicate with our friends and family, and engage in social and professional networks. When you’re posting content online, we know it’s important to have a fast, reliable connection, and we’re committed to enabling the rapid sharing of content,” said Rich DiGeronimo, Charter Senior Vice President, Product and Strategy. “With multiple connected devices in your home, you don’t have to make tradeoffs with Charter Internet. You can use multiple gadgets simultaneously, and enjoy a rich experience with each one. The power of the Internet continues to grow, and Charter delivers more speed than ever.”

Charter customer Stephen Bolen is the head of a household of three, with a continuously growing number of Internet-connected gadgets. “We’ve never had a problem scaling up, knowing that Charter Internet service would meet our demands,” he says. “I’m usually browsing on my laptop, streaming video or uploading files to an FTP server for clients, while my wife browses on the tablet or her laptop. My daughter’s data usage primarily comes from kids’ shows and education apps.”

Bolen grew up in the era of one-person-at-a-time on the desktop computer, and during that time no one could use the telephone. “That’s all changed with Charter Internet,” he says. “My family can be together, yet doing our own things. I’m glad my daughter is growing up this way.”

“The value of the Internet can’t be measured simply in megabits and gigabytes,” said John Birrer, Charter’s Senior Vice President, Customer Experience. “Our goal is to deliver the best experience with not only the fastest speeds, but also the most reliable, consistent Internet connectivity and highest quality customer service. Our customers deserve it, and we’ll deliver it, now and in the future.”

1Cisco® Visual Networking Index.
PC Magazine Fastest ISPs 2011 logo is a trademark of Ziff Davis, Inc. Used under license.

About Charter
Charter is a leading broadband communications company and the fourth-largest cable operator in the United States. Charter provides a full range of advanced broadband services, including advanced Charter TV® video entertainment programming, Charter Internet® access, and Charter Phone®. Charter Business® similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, business telephone, video and music entertainment services, and wireless backhaul. Charter’s advertising sales and production services are sold under the Charter Media® brand. More information about Charter can be found at charter.com.

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Media: Anita Lamont | P: 314-543-2215
Analysts: Robin Gutzler | P: 314-543-2389

MCTA’s Cable Day at the Capitol will be held Tuesday, Jan. 24th, with a lunch in the Capitol Rotunda from 11:30am to 12:30pm.

Later in the day MCTA will host a reception at DoubleTree Hotel from 5-7pm. All legislators are invited to attend, and MCTA members are encouraged to use this time to connect with their legislators on an personal level.

The Kansas City Region has joined a growing list of Comcast markets across the country with this week’s soft launch of Xfinity Home Security (XHS). This state-of-the-art security service helps customers protect their home and family utilizing the reliability and sophistication of Comcast’s wideband network. With a wide variety of available features, combined with the ease and flexibility of monitoring and adjusting the system remotely, XHS means peace of mind whether at home or on-the-go.

Xfinity Home Security includes traditional home security features coupled with a sophisticated platform integrating many of our products and services, all at an affordable price. Next-generation features include 24 X 7 monitoring with cellular back-up, remote access from your smartphone or computer to the XHS online web portal or through the XHS iPhone/iPad app, and much more. Plus, customers could save up to 20% on their homeowner’s insurance as well as an additional 15% on their energy bill.

We’re very excited about introducing this brand new product to our customers – it’s yet another way we’re bringing innovation into the home in combination with our Triple Play packages. If you haven’t yet done so, be sure to take the XHS training on your Learning Portal, and remember to tell your family, friends and neighbors about Xfinity Home Security.

Missouri Speaker of the House Steven Tilley (R- 106^th ) visited Charter Commons on November 2, 2011, as part of Charter Communications Employee Grassroots Political Forum.

This forum is designed to encourage open dialogue between political representatives and Charter employees. Representative Tilley spent time with approximately 40 members of Charter’s leadership team, where he discussed his vision for the Missouri House of Representative. He also took a tour of the facility and was eagerly greeted by the nearly 1,000 employees who work at Charter Commons.

Representative Tilley was elected to the House in 2004 and, in 2008, he was elected Majority Floor Leader of the House of Representatives for the 94^th Legislative Session. In 2011, he was elected Speaker of the House for the 96^th Legislative Session.

The National Cable Telecommunications Association has been working closely with representatives of the Federal Communications Commission (FCC) and National Association of Broadcasters (NAB) to promote awareness of the first-ever nationwide test of an Emergency Action Notification under the Emergency Alert System (EAS).

This test will be conducted on November 9, 2011, at 2:00 p.m. Eastern Standard Time and managed jointly by the FCC and Federal Emergency Management Agency (FEMA). Further information about the test can be found on the FCC’s website here: www.fcc.gov/nationwideeastest.

The FCC produced a set of Public Service Announcements (PSAs) in 15 second versions. Each PSA is available in English and Spanish, in open and closed caption versions. A 30 second English closed caption version is also available.

View the PSAs on the FCC’s website. Spots will begin running on Monday, October 24 and conclude before 2 p.m. EST on Wednesday, November 9. Downloadable broadcast-ready copies are available on the NCTA Web Site.

The EAS test is designed to span ALL channels on a cable line-up. Therefore, cable networks are asked to consider running one version of the PSA at least several times a day from October 24 through November 9; and that cable systems consider running the spots several times a day on as many insertable channels as possible, through the same period of time.

Smit’s Comcast Powered By Innovation, Communication
By Mike Farrell — Multichannel News, September 26, 2011

While the financial world focused on Comcast’s $30 billion deal for control of NBCUniversal over the past year, executives in the upper reaches of the Comcast Center — the tallest building in Philadelphia — never forgot the company’s roots.

“Cable is the heart and soul of the financial engine that is Comcast,” chairman and CEO Brian Roberts said in an interview last week.

In the first half of the year (the NBCU deal closed on Jan. 28), cable accounted for nearly 70% of Comcast’s total revenue and 86% of its total operating cash flow. And though the distribution business in general has taken some hits as fears of telco over-the-top video competition rise among investors, Comcast has shown a remarkable resilience, reducing basic-video losses by more than 30% in the first six months of the year through a combination of new product launches, improved customer service and savvy marketing.

Based on its performance in these categories, Comcast is Multichannel News’ 2011 Operator of the Year.

The closing of the NBCUniversal joint venture — a merger of its national programming assets with the General Electric unit — in January gave Comcast 51% control of a major broadcast network and some of the top U.S. cable networks, including USA Network, Bravo, CNBC and MSNBC. It also signaled a changing of the guard for the cable operations.

At the close, former cable chief operating officer Steve Burke, who had steered Comcast through its greatest period of growth, was tapped to head up NBCU as CEO. His replacement was former Charter Communications CEO Neil Smit. Smit joined Comcast in January 2010 as president of the cable division.

Smit has some formidable shoes to fill. Burke was responsible for successfully integrating Comcast’s acquisitions of AT&T Broadband in 2002 and Adelphia Communications in 2006. During that period, Comcast was transformed from an 8.5 million-subscriber regional power in 2001 into a 24.2 million-subscriber behemoth by the end of 2006.

Over the years, competition, high unemployment and nonexistent housing growth have chipped away at that subscriber base, now at 22.5 million customers.

“The single most important thing in 2011 was the transition to Neil (as head of the cable company) from Steve,” Roberts said. “Neil has done an outstanding job. He’s used to be being on a team.”

Smit ’s performance has not gone unnoticed on Wall Street.

BREATH OF FRESH AIR

“Neil Smit was a breath of fresh air at the company,” Pivotal Research Group principal and media and communications analyst Jeff Wlodarczak said. “His presence there and some of the initiatives he put in, as well as the fact that they quite successfully rebranded themselves under Xfinity; they have had some very strong growth relative to the industry.”

In his first quarter as head of the cable unit, Smit, a former Navy Seal, tackled the basic-subscriber challenge — the industrywide hemorrhaging of basic-video customers. Building on programs and initiatives created under Burke, Comcast managed to reduce its basic-customer losses significantly. In the first quarter of this year, Comcast lost about 39,000 basic-video subscribers, about half the 82,000 customers it lost in the same period in 2010.

That improved performance built on better-than-expected fourth-quarter results, when the nation’s largest MSO lost about 135,000 basic customers, more than 30% less than the 199,000 it lost in the fourth quarter of 2009.

The trend continued in the second quarter — Comcast lost about 235,000 basic customers, down 11.3% from the 265,000 it lost in the prior year but greater than the 173,000 most analysts expected.

Smit gives all of the credit for the improvements to his team of divisional managers and the 86,000 employees across the cable company. “They’re the stars,” Smit said. “That’s where the heavy lifting is happening.”

LESSENING LOSSES

Chipping away at video losses remains a priority, he added. “The whole business is focused on retaining customers,” Smit said. “It’s a combination of better products, better services and more targeted marketing. We’ve had three quarters of reduced losses and our ARPU [average revenue per unit] is also up — primarily as we’re selling more advanced services.

“We probably sold in the first half 390,000 HD DVR customers,” he added. “I think there is still room for improvement. At the end of the day, it’s all about focus and execution.”

Smit and his team have focused on a simple tenet: a happy customer is a loyal customer. Creating that happy customer has included beefing up customer service — including reducing service-appointment windows to two hours (in some cases, one hour) across the footprint, reducing trouble calls and truck rolls — and by introducing at least one new product innovation in each quarter.

Comcast wants to “fundamentally transform” the customer experience, Smit said, making it more convenient and reliable. In the second quarter, repeat service calls declined by 15% and repair calls declined by 9%. The company estimates that by the end of the year, it will have reduced service-related truck rolls by 2 million and service- related phone calls by 10 million, compared to 2009.

“We’re making progress,” Smit said.

West Division president Steve White said a big part of customer service is listening to subscribers and tailoring options to fit their needs. In his division, which has more than 6 million subscribers in tech-savvy cities like San Francisco and Seattle, White said efforts have centered on enhancing the self-help experience for broadband, voice and video.

“We find that a lot of customers want to resolve things themselves,” White said, adding that Comcast has developed several tools, including a Customer Central portion of its website where subscribers can manage their bills and account settings, and locate information to solve problems themselves.

“Those [tools] have come a long way,” White said. “We lead the company in self-install kit installations, because it’s simple, it’s easy and our customers feel more empowered. Our job is to make it easy for them.”

AN EASIER EXPERIENCE

Comcast also has focused on enhancing the overall customer experience through an initiative called “One Welcome.”

The One Welcome concept was first trialed in Comcast’s Central division, which comprises about 8 million customers in 15 states, and focuses on a new triple play customer’s first 120 days with the company, starting with the initial install. Comcast technicians literally walk the customer through all the aspects of the service on the first day, setting up their iPad, caller-ID functions, billing preferences and even elaborate SMS notifications on the status of their household service to their cellphones.

Central Division president William Connors said One Welcome was trialed in about 4 million homes around Chicago and will expand to other major metropolitan areas in the division over the next three to six months and be fully deployed across the company in the next six to nine months. During the trial, One Welcome customers signed up for SMS alerts and iPad service at five to six times the normal adoption rate of those services.

“We can’t wait to look back 30 days and see how we did and make analytical and strategy decisions,” Connors said. “You’ve really got to look at what happened in the most recent hour and then look back at the previous 24 hours … That is the nature of the competitive landscape we’re in.”

Roberts said a prime example of the speed of new product turnaround is Comcast’s iPad app. Initially introduced in May, it reached 3 million users last week.

“We’ve really turned a corner [in the] the summer of the iPad app,” Roberts said. “We didn’t have to roll a single truck, and we improved the experience of our customers.”

Product innovation has been a mantra for Smit, who has set a goal of at least one new product per quarter.

And Smit is no stranger to the Internet: Before working at Charter, Smit worked at AOL, where he learned the intricacies of a largescale Web operation.

So far in 2011, the new-product pipeline has produced products for dynamic ad insertion; home security; Metro Ethernet business services; a 105 Megabit per second data product; Signature Support, a technical support and equipment protection program for home electronics devices; the Xfinity TV app for the Android; the Play Now app, which enables customers to access VOD content on their IPad; and Catch Up/Keep Up, which enables customers to view past episodes of shows with the click of their remote.

Announced in 2011 and coming soon is a Skype applications that allows Comcast customers to make video phone calls through their TVs, PCs, compatible Smartphone and tablets.

“This is the fastest innovation cycle the industry’s experienced and from my perspective, it’s just starting,” Smit said, adding that Comcast’s cloud-based network architecture enables it to introduced new offerings quickly.

“Speeding up the process is going to be critical to the customer experience,” Smit added. “We’re applying what we learned from the Web and the apps and applying it to the TV screen. Working on the cross platform experience with things like recommendation engines is going to be critical. The pace of innovation is going to accelerate.”

Miller Tabak media analyst David Joyce said that Comcast’s product innovation efforts are making a mark.

“They are definitely ramping up their innovation,” Joyce said. “They’re showing that they are much more than just a video company.”

That is a big step for Comcast, which has traditionally been the more video-centric of the larger operators. Several years ago, when other MSOs were concentrating on increasing data speeds and rolling out phone service, Comcast put a greater emphasis on video on demand.

Today, both worlds seem to have converged, at least for the Philadelphia-based cable giant. Comcast has been a big proponent of DOCSIS 3.0 with its ultra-high data speeds — the company has launched a 105 Megabit per second product called Extreme in several markets — and at the same time has more VOD titles (30,000-plus) and its customers access more VOD programming (upwards of 350 million views per month) than any other operator.

Wlodarczak said that Comcast’s early focus on the video side of the business is paying off .

Focusing on content and obtaining VOD and streaming rights early helped set the stage for the MSO’s aggressive push into TV Everywhere, online content authentication that is available across its systems, Wlodarczak said.

Perhaps the biggest reason for the change in thinking at the company is the “One Comcast” initiative, in which division presidents and managers across Comcast’s business lines are encouraged to talk to each other, exchange ideas and find solutions to common problems.

“The whole idea under the One Comcast banner is that we’re each feeding different initiatives on behalf of the entire company and by virtue of that you’re bringing folks to participate in those initiatives from across the company,” Northeast division president Kevin Casey said — regardless of service or product.

Comcast has come full circle since its more acquisitive days, he said, when the priority was integrating all of its newly purchased systems.

“That was a lot of lifting,” Casey said of those years. “Now that we’ve had a couple of years under our belt, [the question is] how do we accelerate our business?”

Mark Robichaux contributed to this report.
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