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CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 425 on 02/05/2016
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FEBRUARY 04, 2016 / 03:00PM GMT, CHTR - Q4 2015 Charter Communications Inc Earnings Call

Vijay Jayant - Evercore ISI - Analyst

Thanks. Tom, you mentioned that you had hopes that the deal could close in March. And we read that California PUC is holding out for a later date, and I understand you've had some meetings there. Any color you can share on that discussion? And then, your view on the FCC's attempt of introducing this [all-vid] ability for customers to buy boxes elsewhere? And what that means, especially within the context of your WorldBox initiatives? Thanks.

Tom Rutledge - Charter Communications Inc - President and CEO

Right. With regard to the regulatory approval process, we're reasonably confident that the FCC and DOJ are on track to stay within the shot clock that they've imposed on themselves, and that they're committed to that. And we're trying to move California in, which we think is, really, the only thing that would extend it out.

And so we've petitioned that California move us up in their docket, and we have yet to hear on whether that's going to happen or not. With regard to all-vid type -- we haven't seen the proposal yet, really, fully. And -- but we think it's a very dynamic marketplace, and that the business is moving toward app-based display and cloud-based display. And that we'll want to work carefully with the FCC, as they attempt to change the marketplace as it currently exists.

Vijay Jayant - Evercore ISI - Analyst

Great. Thank you.

Stefan Anninger - Charter Communications Inc - VP of IR

Operator, next question please.


Your next question comes from the line of Jonathan Chaplin with New Street Research.

Jonathan Chaplin - New Street Research - Analyst

Thanks. Two quick questions, if I may. On your cost to serve customers, it was flat year over year. Have we gotten to a point where you've put all of the infrastructure in place that you need for the existing Charter business? And you should start seeing operating leverage on that cost base? And we noticed the same trend with selling expenses, as well.

And the second question was just on the trends we're seeing in broadband subscriber growth, for the industry in general. It's been a phenomenal quarter, and just a great year, of accelerating growth for the industry. We think that's being driven by strong secular tail winds. Is there any reason we shouldn't see continued acceleration and growth in 2016? Thanks.

Tom Rutledge - Charter Communications Inc - President and CEO

The cost to serve and selling expenses, it really ties to some of the financial discussions we've already had, in terms of efficiency. And yes, we think that Charter, standalone Charter, continues to get more efficient. And as a result of the infrastructure we've put in place, and the practices we've put in place, and the changes we've done to our customer service operation, all of which ultimately improved customer life, customer satisfaction and reduced transaction volume in the business, which reduces selling expenses and cost to serve.

Broadband growth, I think, is an opportunity for us. The Charter story, and I think the story for the new Charter, is that it's an under-penetrated business. And if you look at the market share that the telcos have in internet service, and the satellite companies have in video service, and the share that telcos have in business services, we have a lot of growth in front of us. And we have good products that are driving that growth.


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