Charter's Wireless Efforts Will Be Tested Over the Coming Quarters

We generally like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. However, we aren’t enamored with the extremely heavy discount on broadband and wireless services that its Spectrum One offer provides. We believe this type of promotion tends to attract disloyal customers while also diminishing the value of these services in consumers’ minds. Still, we believe the firm is positioned to remain a dominant broadband provider and produce stable cash flow.