disruptions. We cannot assure you that our efforts to date and our ongoing
efforts to prepare for the year 2000 problem will be sufficient to prevent a
material disruption of our operations, particularly with respect to systems we
may acquire prior to December 31, 1999. As a result of any such disruption our
growth, financial condition and results of operations could suffer materially.
THERE SHOULD BE NO EXPECTATION THAT MR. ALLEN WILL FUND OUR OPERATIONS OR
OBLIGATIONS IN THE FUTURE.
In the past, Mr. Allen and/or his affiliates have contributed equity to
Charter Investment and Charter Communications Holding Company. Pursuant to a
membership interests purchase agreement, as amended, Vulcan Cable III
contributed $500 million on August 10, 1999 to Charter Communications Holding
Company, and agreed to contribute an additional $825 million, which will be in
the form of cash and certain equity interests to be acquired in connection with
the Rifkin acquisition, to Charter Communications Holding Company. Charter
Communications Holding Company has committed to contribute all of this equity to
us. There can be no expectation that Mr. Allen or his affiliates will continue
to contribute funds to us or to our affiliates in the future.
WE OPERATE IN A VERY COMPETITIVE BUSINESS ENVIRONMENT WHICH CAN AFFECT OUR
BUSINESS AND OPERATIONS.
The industry in which we operate is highly competitive. In some instances
we compete against companies with fewer regulatory burdens, easier access to
financing, greater personnel resources, greater brand name recognition and
long-standing relationships with regulatory authorities. Mergers, joint ventures
and alliances among cable television operators, regional telephone companies,
long distance telephone service providers, electric utilities, local exchange
carriers, which are local phone companies that provide local area telephone
services and access to long distance services to customers, providers of
cellular and other wireless communications services and others may result in
providers capable of offering cable television and other telecommunications
services in direct competition with us.
We also face competition within the subscription television industry, which
includes providers of paid television service, and excludes broadcast companies
that transmit their signal to customers without assessing a subscription fee. We
also face competition from companies distributing television broadcast signals
without a subscription fee and 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. We cannot assure you that upgrading our cable systems will allow
us to compete effectively. Additionally, as we expand and introduce new and
enhanced services, including additional telecommunications services, we will be
subject to competition from other telecommunications providers. We cannot
predict the extent to which this competition may affect our business and
operations in the future.