fund the capital expenditures necessary to keep pace with technological
developments, or that we will successfully anticipate the demand of our
customers for products and services requiring new technology. This type of rapid
technological change could adversely affect our plans to upgrade or expand our
systems and respond to competitive pressures. Our inability to upgrade, maintain
and expand our systems and provide enhanced services in a timely manner, or to
anticipate the demands of the market place, could adversely affect our ability
to compete. Consequently, our growth, results of operations and financial
condition could suffer materially.
WE MAY BE UNABLE TO NEGOTIATE CONSTRUCTION CONTRACTS ON FAVORABLE TERMS AND OUR
CONSTRUCTION COSTS MAY INCREASE SIGNIFICANTLY. THIS COULD ADVERSELY AFFECT OUR
GROWTH, FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The expansion and upgrade of our existing systems and the systems we plan
to acquire in our pending acquisitions will require us to hire contractors and
enter into a number of construction agreements. We may have difficulty hiring
civil contractors, and the contractors we hire may encounter cost overruns or
delays in construction. Our construction costs may increase significantly over
the next few years as existing contracts expire and as demand for cable
construction services continues to grow. We cannot assure you that we will be
able to construct new systems or expand or upgrade existing or acquired systems
in a timely manner or at a reasonable cost. This may adversely affect our
growth, financial condition and results of operations.
THERE SHOULD BE NO EXPECTATION THAT MR. ALLEN WILL FUND OUR OPERATIONS OR
OBLIGATIONS IN THE FUTURE.
Other than as described in this prospectus, there should be no expectation
that Mr. Allen or his affiliates will contribute funds to us or to our
subsidiaries in the future. In the past, Mr. Allen and/or his affiliates have
contributed equity to Charter Investment, Inc. and Charter Communications
Holding Company. Pursuant to a membership interests purchase agreement, Mr.
Allen, through Vulcan Cable III Inc., contributed to Charter Communications
Holding Company $500 million in cash in August 1999 and an additional $825
million in cash and equity interests acquired in the Rifkin acquisition in
September 1999. In addition, Mr. Allen, through Vulcan Cable III Inc., has
agreed to purchase an additional $750 million of membership units of Charter
Communications Holding Company at the closing of the offering.
A SALE BY MR. ALLEN OF HIS DIRECT OR INDIRECT EQUITY INTERESTS COULD ADVERSELY
AFFECT OUR ABILITY TO MANAGE OUR BUSINESS.
Mr. Allen is not prohibited by any agreement from selling his shares of
Class B common stock of Charter Communications, Inc. or causing Charter
Investment, Inc. or Vulcan Cable III Inc. to sell their membership units in
Charter Communications Holding Company after the lapse of a 180-day lock-up
period following completion of this offering. We cannot assure you that Mr.
Allen will maintain all or any portion of his direct or indirect ownership
interest in us. In the event he sells all or any portion of his direct or
indirect ownership interest in Charter Communications, Inc. or Charter