New York state settlement with Charter

Communications/Spectrum Management Holding

Financial Terms

1) Consumer Relief (Direct Refunds): $62.5 million

a. Charter to award a $75 refund to each of over 700,000 active subscribers based
on:

(1) Leasing an inadequate modem;

(2) Leasing an inadequate WiFi router; OR
(3) Subscribing to a Time Warner Cable legacy speed plan of 100 Mbps or
higher.

b. Charter to award an additional $75 refund to each of over approximately 150,000

subscribers who had an inadequate modem for 24 months or more.

Charter will notify subscribers of their eligibility for refunds and disburse them
within 120 days.

Note: Charter has already disbursed over $6 million in refunds for inadequate
modems to date, separate from today’s settlement. Because these subscribers
received full compensation, they are ineligible for a further payment.

2) Consumer Relief (In-Kind Video and Streaming Benefit): Worth over $100 million

In addition to the direct refunds detailed above, Charter will offer free streaming
services to approximately 2.2 million active internet subscribers:

a. Charter will offer all subscribers currently receiving internet and cable television
from the company a choice of either three free months of HBO or six free months of
Showtime. (Note: This benefit is available to subscribers who do not already
subscribe to both of the offered networks through Charter.)

b. All other active Charter internet subscribers will receive a free month of Charter’s
Spectrum TV Choice streaming service—in which subscribers can access broadcast
television and a choice of 10 pay TV networks—as well as a free month of Showtime.

Charter will notify subscribers of their eligibility for video and streaming services
and provide details for accessing them within 120 days of the settlement.

Receiving the video and streaming services as restitution will not affect eligibility for
future promotional pricing.
3) Substantial Network Investments

Following the Attorney General’s investigation, Charter made significant investments to

address the problems identified in the complaint and improve internet service in New
York. This includes network enhancements, modem replacements, and upgraded WiFi
routers.

Marketing and Business Reforms

The settlement also includes the follow key injunctive terms:

1) Affirmative Advertising Obligations: Charter is required to (a) describe internet

speeds as “wired”; (b) disclose that wireless speeds may vary; and (c) disclose the
factors that might lead actual experience to vary, including based on the number of
users and device limitations. This applies to all advertising and marketing of speeds,
including television and other commercials, website and website communications,
print ads, bill inserts, emails, and more.

2) Substantiating Internet Speeds: Charter must substantiate internet speeds using

an industry-accepted testing methodology, and discontinue any speed plan that
cannot be substantiated.

3) Advertising prohibitions: Charter is prohibited from making unsubstantiated

claims about (a) the speed required for particular internet activities like streaming;
(b) the reliability of the internet service (e.g., no buffering, no slowdowns); or (c) the
availability of the promised speed over WiFi.

Charter is also prohibited from describing internet speeds as “consistent” without

fully satisfying the FCC Consistent Speed Metric and must make commercially
reasonable efforts to deliver access to all online content and services featured in its
advertisements.

4) Equipment Reforms: Charter is required to: (a) provide subscribers with

equipment capable of delivering the advertised speed under typical network
conditions when they commence service; (b) promptly offer to ship or install free
replacements to all subscribers with inadequate equipment via at least three
different contact methods; and (c) implement rules to prevent subscribers from
initiating or upgrading service without proper equipment for the chosen speed
tiers.

5) Sales and Customer Service Training: Charter must train customer service
representations and other employees to inform subscribers about the factors that
affect internet speeds. Charter must also maintain a video on its website to educate
subscribers about various factors limiting internet speeds over WiFi.