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Charter Communications, Inc., through its subsidiaries, operates cable systems in the United States with approximately 11.9 million homes passed and approximately 6.6 million customer relationships in 40 states. Through its broadband network of coaxial and fiber-optic cable, Charter offers video, data, telephony and other advanced broadband services. The Company offered high-speed Internet access (data services) to 82% of its homes passed and digital video services to 97% of its homes passed, as of December 31, 2002. Charter provides telephony service to approximately 22,800 customers in two markets. From these 6.6 million customer relationships, many of whom subscribe to more than one service, it has approximately 10.4 million revenue generating units. Revenue generating units means the sum total of all primary analog video, digital video, high-speed data and telephony customer relationships, not counting additional outlets within one household.

Charter offers high-speed Internet service to its residential and commercial customers primarily via cable modems attached to personal computers (PCs). The Company generally offers high-speed Internet access services under the Charter Pipeline brand, although in certain markets it offers this service in conjunction with a third-party provider. For its Charter Pipeline customers, the Company has a custom start page that is co-branded with Microsoft Corporation's network of Websites, known as MSN, with content modules that the Company provides, for example, movie trailers, previews of movies on pay-per-view and video-on-demand and television listings. In 2002, Charter began to offer a self-install option for cable modems. The Company also offers traditional dial-up Internet access and television-based Internet access in a limited number of its markets.
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