Charter kills TWC Maxx digital upgrades

Charter van

Charter Communications has confirmed that Time Warner Cable “Maxx” digital upgrades, which have included such features as 300 Mbps broadband speeds, have been pushed aside in favor of Charter’s own digital conversion strategy. 

“There is, obviously, the significant amount of all-digital activity that was continuing at TWC. And that will be largely put on hold as we put in the Charter all-digital strategy the beginning of next year,” said Charter CFO Christopher Winfrey, speaking earlier this week during the MSO’s second-quarter earnings call.

In late May, shortly after closing its purchase of TWC, Charter indefinitely suspended the Maxx program, which also includes advanced pay-TV set-tops and interfaces. 

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“The Maxx Internet Speed Increase Program is currently undergoing review by our leadership team,” said a Charter internal memo published by Stop the Cap. “As a result, all speed increases and customer communications were placed on a temporary hold beginning Thursday, May 26.”

In Maxx’s place is Charter’s two-way Spectrum Guide video system, as well as 60 Mbps and 100 Mbps broadband tiers. 

Winfrey said Charter’s second quarter capital expenditures were up by $137 million, or 7.5 percent year-over-year, “driven primarily by the TWC Maxx all-digital initiative.”

“Going forward, obviously we'll reduce the spend on IT, product development and other areas which were by definition duplicative,” he added. “We should see a short-term benefit from the regrouping on the remaining all-digital projects.”

For more:
- read this Seeking Alpha transcript
- read this DSL Reports story 
- read this Stop the Cap story

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