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|CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 425 on 05/26/2015|
MAY 26, 2015 / 12:00PM GMT, CHTR - Charter Announces Transactions with Time Warner Cable and Bright House Networks M&A Call
Charter invests significantly in interconnection. And in capacity before ports get congested, so customers will have a quality experience when watching on-line video or gaming. And regardless of Title II litigation, we have no plans to block, throttle or engage in paid prioritization of internet traffic.
Well also deliver superior customer care to our customers in all three companies, adding United States jobs. Charters added 7,000 new jobs since 2012, most of which have been in the customer service fields. Weve brought overseas jobs back home and opened new customer call centers, bringing the total number to 11 across the United States. New Charter will bring Time Warner customer care jobs back from overseas too, training new employees to provide superior service, while adding jobs to the US economy.
New Charter will build on Bright Houses reputation for quality customer service. New Charter will increase facilities based broadband competition. New Charter will expand its broadband offerings for consumers by investing significantly in out of home Wi-Fi, building on what Time Warner Cable has already accomplished. We will invest significantly in building out our optical network beyond our existing footprint, to inject more competition into the commercial marketplace.
New Charter will not have market power in high speed broadband or video, this transaction does not reduce any competition in any market. And New Charter will serve less than 30% of broadband customers receiving 25 megabits or greater speeds nationwide.
Similarly, New Charter will serve only about 17% of multi-channel video customers, subscribers nationwide. And be the third largest video provider after AT&T DirecTV if its approved at 26% of subscribers nationally, and Comcast at 22%. Charter owns no programming interests.
New Charter will have the largest cable presence in only 5 of the top 20 DMAs. In fact, the transaction does not change this metric, as Time Warner Cable and Bright House networks are already affiliated, and Charter does not dominate any of the top 20 DMAs. New Charter will be a strong competitor in the setting of open, non-proprietary, technical standards.
We have a lot of work ahead of us, but were looking forward to working with Time Warner Cable, as well as the teams of Bright House to assure smooth transitions for our collective customers and employees. Were confident not only in the value that this transaction will create for all of our collective shareholders, but also for our customers and consumers. Operator were ready to take questions.
QUESTION AND ANSWER
Your first question comes from Benjamin Swinburne with Morgan Stanley.
Benjamin Swinburne - Morgan Stanley - Analyst
I know you just touched on it Tom and I would love to hear from Rob as well. Im sure everyones biggest question is around regulatory. There were some press reports that you spoke with the chairman last week. Im curious if you can be specific about why you believe this transaction will close, where the Comcast Time Warner Cable did not.
And second, you make a comment about no data caps or usage based pricing, Tom, in Charters current product suite. Is that something youre planning to keep for the, you know foreseeable future, is that a long-term policy that youve agreed to or is this something that could be fluid over time? Im trying to figure out if thats part of your regulatory backdrop to this transaction.
Tom Rutledge - Charter Communications, Inc. - President, CEO
Well, Ben, you know, were a very different company than Comcast and this is a very different transaction for all the reasons I just expressed. Our business practices are practices because we think they work. We think thats what consumers want and were responsive to consumers, so as long as those practices fulfill consumer needs, well continue them. And Rob?