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SEC Filings

S-4/A
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4/A on 05/12/1999
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allowed to operate cable systems in their communities without obtaining
franchises. Competing operators may build systems in areas in which we hold
franchises (referred to as "overbuilds"). We are aware of overbuild situations
in six of our systems and potential overbuild situations in four of our systems
representing a total of approximately 45,000 customers. See
"Business -- Competition."
 
     We also face competition within the subscription television industry from
non-cable technologies for distributing television broadcast signals. Current
and potential competitors include:
 
   
     - direct broadcast satellite providers, which include high-power and
       medium-power digital satellite providers,
    
 
   
     - multichannel multipoint distribution systems or "wireless cable", and
    
 
   
     - operators of satellite master antenna television systems.
    
 
   
     Electric utilities also have the potential to become significant
competitors in the video marketplace, as many of them already possess fiber
optic transmission lines in certain of the areas they serve. In the last year,
several utilities have announced, commenced, or moved forward with ventures
involving multichannel video programming distribution.
    
 
   
     The Telecommunications Act of 1996 exempts some of our competitors from
regulation as cable systems. This exemption may give these entities a
competitive advantage over us. There can be no assurance that we will be able to
continue to compete effectively with such entities in the cable television
business.
    
 
   
     We face competition from other communications and entertainment media,
including conventional off-air television and radio broadcasting services,
newspapers, movie theaters, the Internet, live sports events and home video
products. Other new technologies may also soon compete with our latest
non-entertainment services, along with our traditional cable television
services. As we expand and introduce new and enhanced services, including
additional telecommunications services, we will be subject to competition from
other telecommunications providers. For example, several companies compete with
us to provide high-speed Internet access, using digital subscriber line
technology. Advances in communications technology and changes in the marketplace
and the regulatory and legislative environment are constantly occurring. We
cannot predict the specific effect ongoing or future developments might have on
us or the general effect these developments might have on the cable television
industry. We also cannot predict the extent to which this competition may affect
our business and operations in the future. For more information, see
"Business -- Competition."
    
 
   
INCREASES IN PROGRAMMING COSTS -- OUR PROGRAMMING COSTS ARE INCREASING AND WE
MAY NOT HAVE THE ABILITY TO PASS THESE INCREASES ON TO OUR CUSTOMERS, WHICH
WOULD ADVERSELY AFFECT OUR REVENUES AND CASH FLOW.
    
 
   
     Programming has been and is expected to continue to be our largest single
expense item. Programming costs were equal to approximately 21% of revenues in
1998 with respect to the cable systems owned by us during that year. In recent
years the cable industry has experienced a rapid escalation in the cost of
programming, in particular, sports programming. Programming costs for the
services carried on the basic and expanded basic levels of service increased by
approximately 12%, on a per customer basis, from 1997 to 1998. This escalation
may continue and we may not be able to pass programming cost increases on to our
customers. In addition, as we upgrade the channel capacity of our systems and
add programming to our basic and "preferred basic" tiers, and reposition
    
 
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