Charter Not Prioritizing Symmetrical Broadband, CEO Says

for current upstream uses, he said. He said Charter is capable of upgrading its network, if needed as new products develop. Comcast indicated last week that symmetrical broadband is a priority (see 2104290009). Rutledge said Charter added more than 7 million internet customers in the five years since it bought Time Warner Cable and Bright House Networks, extended its network past 5 million additional homes and businesses, and spent more than $40 billion on infrastructure and technology. He said over the next six years, Charter will spend $5 billion to reach more than a million unserved customer locations, offset by $2 billion in Rural Digital Opportunity Fund money: That could lead to other "white space" areas of potential customers opening up due to federal investing. He said those rural markets are more expensive capital projects, and payback can take 10-plus years, but the cable ISP is confident it can get good penetration. The public money being targeted toward connectivity efforts like E-rate and the emergency broadband benefit program mean "a huge opportunity, [but] our sense is the states don't know how to spend it all," Rutledge said. Revenue in Q1 was $12.5 billion, up $784 million year over year, Charter said Friday. It has 27.4 million residential internet customers, up 1.9 million; 15.5 million residential video subscribers, down 67,000; 9.1 million residential voice customers, down 247,000; and 2.6 million residential mobile lines, up 1.25 million. Chief Financial Officer Chris Winfrey said the mobile business is scaling up to stand-alone profitability. MoffettNathanson's Craig Moffett wrote investors that Comcast showed its mobile business can be profitable even without unloading traffic from its mobile virtual network operator. The analyst said Charter's citizens broadband radio service spectrum is "a clear path for traffic offload" that could reduce costs. He said wireless could eventually pass video as Charter's No. 2 revenue stream.