A solid foundation is necessary for any company to launch itself into the big leagues of a market. This is especially true of markets where a complicated infrastructure is needed. Once that infrastructure and foundation is laid, a company can head for great heights and potential profits.

Charter Communications Inc., a broadband Internet/cable provider, offers the full range of services that cable and Internet users require today. These services include: cable television, HD television, broadband internet access, local and long distance telephone, music and pay-per-view movies. The company is based in St. Louis, MO. and serves 5.7 million customers in 29 different states.

From a general point of view, Charter Communications is a diamond in the rough. It is seeing across-the-board increases in per household dollars and increases in both commercial advertising revenue and commercial subscription. Other individual revenue sources are also seeing positive gains. Expenses, and an issue involving valuation in 2003 and 2004, have dragged down potential overall results when compared to several other cable operators across the country, but those issues are now in the past.

Now, the company appears ready to take its place with other operators across the country. Its subscriber base appears to be in place with solid potential for expansion. Its digital conversion rates have been solid per household, so concentrating on new customers should progress at an even pace. This should be even more apparent considering that the company has invested heavily on customer care programs to meet expected growth.

Past the indicators that the company is ready to perform is its largest shareholder. Paul Allen owns the largest block of company stock and is notorious for having a plan. The company has been spending to place itself in a solid growth position and is ready to launch from all appearances. When it does take off, it could be a nice ride.

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