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SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 09/28/1999
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<PAGE>   131
 
the headend to the customer, the customer must use a separate telephone line to
send signals to the provider, although such customer still receives the benefit
of high speed cable access when downloading information, which is the primary
reason for using cable as an Internet connection. In addition to Internet access
over our traditional coaxial system, we also provide our commercial customers
fiber optic cable access at a price that we believe is less than 25% of the
price offered by the telephone companies.
 
     In the past, cable Internet connections have provided customers with widely
varying access speeds because each customer accessed the Internet by sending and
receiving data through a node. Users connecting simultaneously through a single
node share the bandwidth of that node, so that users' connection speeds may
diminish as additional users connect through the same node. To induce users to
switch to our Internet services, however, we guarantee our cable modem customers
the minimum access speed selected from several speed options we offer. We also
provide higher guaranteed access speeds for customers willing to pay an
additional cost. In order to meet these guarantees, we are increasing the
bandwidth of our systems and "splitting" nodes easily and cost-effectively to
reduce the number of customers per node.
 
   
     - CABLE MODEM-BASED INTERNET ACCESS.   We have deployed cable modem-based
Internet access services in 27 markets including: Los Angeles, California; St.
Louis, Missouri; and Fort Worth, Texas.
    
 
     As of June 30, 1999, we provided Internet access service to approximately
13,460 homes and 160 commercial customers. The following table indicates the
historical and projected availability of cable modem Internet access services in
our systems, pro forma for our recent and pending acquisitions as of the dates
indicated. Only a small percentage of the homes passed currently subscribe to
these services.
 
   

<TABLE>
<CAPTION>
                                                                 HOMES PASSED BY
                                                              ADVANCED DATA SERVICES
                                                        ----------------------------------
                                                        JUNE 30, 1999    DECEMBER 31, 1999
                                                        -------------    -----------------
                                                          (ACTUAL)          (PROJECTED)
<S>                                                     <C>              <C>
HIGH SPEED INTERNET ACCESS VIA CABLE MODEMS:
  High Speed Access ..................................      644,600          1,561,700
  EarthLink/Charter Pipeline..........................      572,700            708,700
  Excite@Home.........................................      233,400            738,200
  Convergence.com.....................................           --            311,800
  In-House/Other......................................           --            652,000
                                                          ---------          ---------
     Total cable modems...............................    1,450,700          3,972,400
                                                          =========          =========
  Internet access via WorldGate.......................      245,200            499,900
                                                          =========          =========
</TABLE>

    
 
   
     We have an agreement with EarthLink, an independent Internet service
provider, to provide as a label service Charter Pipeline, which is a cable
modem-based, high-speed Internet access service we offer. We currently charge a
    
 
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