SPECTRUM ANNOUNCES UNPRECEDENTED CUSTOMER COMMITMENT, FREE INTERNET SPEED LIFTS AND NEW BUNDLED PRICING

Rhea-AI Summary

Spectrum has announced a groundbreaking Customer Commitment and new pricing strategy, emphasizing its customer-first philosophy. The commitment includes four pillars: Reliable Connectivity, Transparency, Exceptional Service, and Always Improving. Spectrum is offering new guaranteed pricing for up to three years when services are bundled, with Spectrum Internet starting at $30/month for 500 Mbps when bundled with two lines of Mobile or Video service. Existing customers will receive free speed upgrades to 400 and 600 Mbps for Internet and Internet Ultra, respectively. The company also introduced its new 'Life Unlimited' brand platform, emphasizing how Spectrum's advanced network and connectivity products create opportunities for customers.

Positive

• Introduction of Customer Commitment with performance and service benchmarks
• New pricing strategy with guaranteed pricing for up to three years
• Spectrum Internet (500 Mbps) offered at $30/month when bundled
• Free speed upgrades for existing Internet and Internet Ultra customers
• Launch of 'Life Unlimited' brand platform emphasizing advanced connectivity

Negative

• None.

Insights

Market Research Analyst

Spectrum's new strategy marks a significant shift in the competitive landscape of the telecom industry. The customer-centric approach, including the Customer Commitment and guaranteed pricing, could potentially increase customer retention and acquisition. The $30/month for 500 Mbps internet when bundled is particularly aggressive, potentially pressuring competitors to respond.

The automatic speed increases for existing customers, without price hikes, may boost satisfaction and reduce churn. However, the impact on revenue per user remains to be seen. The 'Life Unlimited' brand platform aligns with evolving consumer expectations for seamless connectivity, potentially strengthening Spectrum's market position.

While these changes are consumer-friendly, their effect on profitability and market share will be important to monitor in the coming quarters.

Financial Analyst

Spectrum's new strategy could have mixed financial implications. The guaranteed pricing for up to three years might impact revenue growth in the short term, but could lead to improved customer lifetime value. The automatic speed upgrades without price increases might pressure margins initially.

However, the aggressive bundling strategy ($30/month for 500 Mbps when bundled) could drive higher adoption of multiple services per household, potentially increasing overall revenue per user. The commitment to same-day service and credits for outages may increase operational costs but could be offset by reduced customer acquisition costs if churn decreases.

Investors should closely monitor key metrics like ARPU, churn rate and operating margins in upcoming quarters to gauge the strategy's effectiveness.

Tech Expert

Spectrum's commitment to network reliability and speed upgrades is technologically significant. Automatically increasing speeds to 400 and 600 Mbps for existing customers showcases network capacity improvements. The pledge to build a network capable of symmetrical and multi-gigabit speeds aligns with industry trends towards higher bandwidth demands.

The emphasis on handling up to 200 devices per household reflects an understanding of the growing IoT ecosystem. The goal of zero service disruptions and fully automated credits is ambitious and will require substantial investment in network infrastructure and AI-driven predictive maintenance.

While impressive, these commitments will necessitate ongoing capital expenditure to maintain competitiveness in the rapidly evolving telecom landscape.

Customer-First Commitment Promises Bill Credits if Service is Disrupted and Guaranteed Pricing for Up to Three Years with No Annual Contracts

Unveils New Spectrum Brand Platform 'Life Unlimited'

STAMFORD, Conn., Sept. 16, 2024  /PRNewswire/ -- Spectrum today made a series of announcements building on the Company's customer-first philosophy, backed by money-back guarantees. They include a first-of-its-kind Customer Commitment that provides performance and service benchmarks to Spectrum customers and a new and simplified pricing strategy that enables customers to choose bundles with price guarantees, including a 500 Mbps Spectrum Internet plan starting at $30 per month when bundled with two lines of Spectrum's fastest Mobile and/or Spectrum Video service. Additionally, all current Spectrum Internet and Spectrum Internet Ultra customers will have their speeds automatically increased for free to 400 and 600 Mbps, respectively.   

These commitments are encapsulated within Spectrum's new brand platform, Life Unlimited, which provides customers access to a life of 'unlimited' opportunity and possibility when seamlessly connected through Spectrum's Internet, Mobile and Video services. Spectrum's new Customer Commitment, pricing plans, speed increases and brand platform will roll out across its 41-state footprint this week.

Setting the Standard: Spectrum's Groundbreaking Customer Commitment

To ensure Spectrum's new Customer Commitment is aligned with customers' changing needs and expectations, the Company conducted extensive research with current and prospective customers, as well as its employees. This input helped shape the development of the Customer Commitment, which is built around Spectrum's promise of "keeping you connected to enhance your life, whenever and wherever you need us."

The Four Pillars of the Spectrum Customer Commitment are:

1. Reliable Connectivity: We are committed to keeping our customers connected 100% of the time and promptly resolving any issues.

• We will fix any service disruptions quickly, including dispatching a technician the same day if the customer requests it prior to 5 p.m.
• If a neighborhood experiences an outage that lasts more than two hours, our agents will offer a credit for the full day.*
• We will continually invest in our network to ensure consistently reliable service.

2. Transparency at Every Step: We are committed to clear and simple pricing and timely service updates; we will take responsibility when things go wrong.

• Within 15 minutes of identifying an outage in a neighborhood, we will notify affected customers and provide an estimated restoration time.
• We are implementing whole dollar pricing, with taxes and fees included.
• There are no annual contracts for any residential services.

3. Exceptional Service: We are committed to providing exceptional customer experiences.  

• We are there whenever our customers need us with 24/7 U.S.-based customer service. If a customer needs help or a professional installation, a technician will be available the same or next day.
• If a customer is not completely satisfied with any services within the first 30 days, we will give them their money back.
• If a customer is not completely satisfied with a new mobile device within the first 14 days, we will give them their money back.

4. Always Improving: We are committed to listening and acting on our customers' feedback to improve our products and customer service.

• The future of connectivity is coming, and we are here to meet it by building a network capable of delivering symmetrical and multi-gigabit speeds.
• With Xumo, we delivered the next generation of streaming and will continue to expand our streaming services – bringing more entertainment at an incredible value.
• We will continue to transform the industry by bringing more value and greater flexibility, committed to providing the fastest wireless and WiFi speeds on a network that can handle up to 200 devices today and even more in the future – designed, owned and operated in the USA.
• We are redefining connectivity while expanding our network to reach approximately 1.75 million unserved and underserved homes and small businesses across the country to help connect everyone, everywhere.
• We are continuously investing in our network to increase capabilities and achieve our future goal of zero service disruptions and fully automated credits if we fall short.

Guaranteed Pricing up to Three Years when Bundled and Increased Internet Speeds

In line with its Customer Commitment, Spectrum also announced improved pricing plans – with guaranteed pricing for up to three years – and speed options that will benefit new customers, create more choices and provide faster speeds for existing customers. Beginning Tuesday, September 17, Spectrum Internet, with starting speeds of 500 Mbps, will be offered as low as $30/month, and Spectrum Gig will be offered as low as $40/month, when each are bundled with two lines of Spectrum's fastest Mobile and/or Video services.

For customers who don't take advantage of these new bundled rates, the industry's first converged offer, Spectrum One, remains available, now with a higher starting speed of 500 Mbps with one free Unlimited mobile line included for a year.

"This new commitment to our customers goes beyond words; it is about action," said Cliff Hagan, Executive Vice President, Customer Operations for Charter Communications, Inc., which operates the Spectrum brand. "With approximately 100,000 employees, our customers are also our friends, family and neighbors, and we hold ourselves accountable to them. If we are charging for a service, it should work all the time; if it doesn't, our customers should trust that we'll make it right. By focusing on reliability, transparency and outstanding service, we want to exceed expectations, build lasting loyalty and address our customers' needs with renewed energy and focus on keeping them seamlessly connected. We've already made the investment in our people, tools and systems that will allow us to execute on these commitments and fully stand behind the great value, products and services we provide to our customers."

Introducing the 'Life Unlimited' Brand Platform

By refreshing the Spectrum brand around the Life Unlimited theme, Spectrum is emphasizing how its advanced network and cutting-edge connectivity products and services create opportunities and remove barriers to help customers live their best lives. Starting tomorrow, a series of new Life Unlimited themed ads will begin running across Spectrum's footprint on all media channels, including TV and digital campaigns for residential and small/medium-sized business consumers. Additionally, Spectrum is introducing a new brand color palette and sonic.  

Spectrum's refreshed brand, encapsulating its Customer Commitment, reflects the Company's purpose: to connect customers to what matters to them, from entertainment to education, from family and friends to their careers, and to the possibilities of living their lives, unlimited.

"Today's launch of Spectrum's Life Unlimited brand platform marks a milestone in our journey to redefine what a connectivity company means to its customers," said Sharon Peters, Executive Vice President, Chief Marketing Officer for Charter. "This initiative is about so much more than a new look and feel for the Spectrum brand; it is a fundamental shift in how we operate, with the goal of building more trust with our customers. Life Unlimited is a platform for action that holds the customer experience at the center of everything we do. By delivering competitive, reliable products and exceptional customer service at an incredible value, we are declaring our unwavering commitment to helping our customers lead unlimited lives, anywhere and everywhere they need us."

More information is available at spectrum.com/our-customer-commitment.

*Outages eligible for credit exclude power outages, natural disasters, and overnight scheduled maintenance.

Note to Editors: For Life Unlimited images and video, please visit Charter's media library.

About Spectrum
Spectrum is a suite of advanced communications services offered by Charter Communications, Inc. (NASDAQ:CHTR), a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses in 41 states. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.

 

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SOURCE Charter Communications, Inc.

FAQ

What is Spectrum's new Customer Commitment for CHTR stock?

Spectrum's new Customer Commitment for CHTR stock includes four pillars: Reliable Connectivity, Transparency, Exceptional Service, and Always Improving. It promises bill credits for service disruptions, guaranteed pricing for up to three years, and no annual contracts.

How much does Spectrum Internet cost under the new pricing strategy?

Under the new pricing strategy, Spectrum Internet with 500 Mbps speed starts at $30 per month when bundled with two lines of Spectrum's fastest Mobile and/or Video service.

What speed upgrades are current Spectrum Internet customers receiving?

Current Spectrum Internet customers will have their speeds automatically increased for free to 400 Mbps, while Spectrum Internet Ultra customers will be upgraded to 600 Mbps.

When will Spectrum's new Customer Commitment and pricing plans be implemented?

Spectrum's new Customer Commitment, pricing plans, speed increases, and brand platform will roll out across its 41-state footprint starting September 17, 2024.