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|CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 425 on 06/16/2015|
we cross that finish line of getting the deal done, priority one is to continue to put those metrics up. And that in turn will undoubtedly start ringing the cash register and…
TR: Well it’s what we want. It’s, you know, you’re creating value now and in the future, and the whole thing about this transaction is to make the future better for everyone involved.
TR: And we can. And what it gives us is scale that allows us to be a better company.
Segment Four: The Charter Operating Strategy
RM: What I’ve heard you say many times is that you have a very firm belief in the proven Charter operating strategy. Maybe you, just at a high-level, because I’m sure there will be plenty of opportunity for you to get into details with our team about this, but maybe the high-level components of what you think of as the Charter operating strategy would just be helpful to get a feel for.
TR: Well really it comes down to the customer and how do you create customers and how do you create value in a company. My view is we have a very powerful network but because of our history we kept analog on it. And, at the same time, didn’t invest fast enough in digital and that’s not just true of Time Warner - it’s true of the whole cable industry and every part of it. And parts of it that I’ve been responsible for too, so I’m guilty for parts of this as well.
I think when you unleash the power of the network by taking it all digital and stand up a better cable TV service with two-way interactive services on every outlet. And use your network to be better than what your competitors can be in video, and use your network that you’ve freed up from analog to take your speeds up and your thru-put up on data. And use your capabilities in telephony to make it essentially an application to data at a very low cost. Put that all together into a package that’s more valuable than a customer can assemble by themselves from satellite, DSL and a phone company. And sell your products that way, fully-featured and rich. You’ll extend the life of your average customer, and so we can actually afford to be a quality organization if we can extend the life of our customers.
So what’s a quality organization? It means that we invest in training; we pay good wages; we, as a result of that, have better craft - meaning all the work we do is better, which improves the customer experience. And if the customer is more satisfied, their average tenure extends. Which means that for the same dollar of revenue, you have less transactions. So you can have higher cost per people through higher quality and still save money by having less transaction activity.
TR: So less service calls and so forth.
RM: And less customer acquisition costs.
TR: And less customer acquisition costs because you have less leakage. All that is a very happy circumstance, and so, but in order to get it, you have to be quality-focused and customer-focused. And