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S-4
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4 on 04/30/1999
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     STATE AND LOCAL REGULATION.  Our cable systems generally operate pursuant
to non-exclusive franchises, permits or licenses granted by a municipality or
other state or local government entity. Franchises generally are granted for
fixed terms and in many cases are terminable if the franchisee fails to comply
with material provisions. The terms and conditions of franchises vary materially
from jurisdiction to jurisdiction. In addition to the franchise document, cable
authorities have also adopted in some jurisdictions cable regulatory ordinances
that further regulate the operation of the cable systems. A number of states
subject cable systems to the jurisdiction of centralized state governmental
agencies, some of which impose regulation of a character similar to that of a
public utility. In the event that a state government agency certifies and
regulates basic rates, the agency must adopt and administer regulations with
respect to the rates for the basic service tier that are consistent with the
regulations prescribed by the FCC under the 1992 Cable Act. As state
governmental agencies are required to follow FCC rules when prescribing rate
regulation, state regulation of our rates is not allowed to be more restrictive
than the federal or local regulation. We are subject to state regulation in
Connecticut. There are ongoing efforts to amend or expand the state and local
regulation of some of our cable systems. We expect further such efforts, but
cannot predict whether any of the states in which we now operate will expand
regulation of our cable systems in the future or how they will do so. State and
local franchising regulatory powers are not unlimited; all state and local
regulations must be consistent with federal law.
 
     The 1992 Cable Act immunizes franchise authorities from monetary damage
awards arising from regulation of cable systems or decisions made on franchise
grants, renewals, transfers and amendments. See "Regulation and Legislation."
 
RISKS ASSOCIATED WITH OFFERING TELECOMMUNICATIONS SERVICES -- IF WE OFFER
TELECOMMUNICATIONS SERVICES, WE MAY BE SUBJECT TO ADDITIONAL REGULATORY BURDENS.
 
     If we enter the business of offering telecommunications services, we may be
required to obtain federal, state and local licenses or other authorizations to
offer such services. We may not be able to obtain such authorizations in a
timely manner, if at all, and conditions could be imposed upon such licenses or
authorizations that may not be favorable to us. Furthermore, telecommunications
companies generally are subject to significant regulation as well as higher fees
for pole attachments. In particular, under the 1996 Telecom Act, cable operators
who provide telecommunications services and cannot reach agreement with local
utilities over pole attachment rates in states that do not regulate pole
attachment rates will be subject to an FCC methodology for determining the
rates, which rates may be higher than those paid by cable operators who do not
provide telecommunications services. The rate increases are to be phased in over
a five-year period beginning on February 8, 2001. If we become subject to
telecommunications regulation or higher pole attachment rates, our business may
incur additional costs which may be material to our business. See "Regulation
and Legislation."
 
RISKS OF FRANCHISES AND FRANCHISE RENEWALS -- OUR FRANCHISES ARE SUBJECT TO
NON-RENEWAL OR TERMINATION IN CERTAIN CIRCUMSTANCES.
 
     Our cable systems are operated under non-exclusive franchises issued by
state or local government franchising authorities. Our business is dependent on
our ability to obtain and renew our franchises. A franchise is generally granted
for a fixed term, but in many cases is terminable if the franchisee fails to
comply with the material provisions thereof. Although we have never lost a
franchise as a result of a failure to obtain a renewal or
 
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