Charter Rolls Out Cheaper Internet Plans To Enhance Customer Loyalty

Cable giant Charter Communications, under the brand Spectrum, unveiled a series of changes Monday, including the introduction of more affordable internet plans that will be bundled with its mobile and cable TV services.

The move is part of Charter's bid to enhance its reputation and customer appeal amid robust competition from Comcast and AT&T's DirecTV.

Charter's CEO, Chris Winfrey, expressed his desire for customers to associate reliability and credibility with their cable and broadband provider, according to NBC News. He further said that the company is rolling out changes that would help in achieving this goal.

Some of the key changes from Charter include new pricing structures and bundled services, improved internet speeds, and credits for service outages, all designed to boost reliability for customers.

Charter also noted that it wanted to get rid of the negative stereotypes often associated with cable providers, aiming to present Spectrum as a more approachable option by introducing its new "first-of-its-kind customer commitment," termed "Life Unlimited."

The new changes come at a time when Charter and its industry counterparts face multiple challenges, including a slowdown in broadband customer growth, ongoing losses in traditional cable TV subscriptions, and the rapid expansion of mobile services.

"It is hard to be loved when you're providing a critical service to the household that's a physical infrastructure that charges over $100 a month," Winfrey told CNBC. "And to the extent there's a problem, sometimes somebody has to enter your home ... in the same vein that it is for an electrician or plumber," he added.

Winfrey further said that changing customers' less-favorable perceptions begins with offering "pricing and packaging that creates more value than you can replicate anywhere else in the marketplace."

Spectrum said it will charge as low as $30 a month for its 500Mbps internet plan, or $40 a month for 1GB service, when bundled with two mobile lines or cable TV. Additionally, the company plans to increase baseline internet speed for current customers at no additional cost.

Charter aims to be more transparent about costs with its new plan, incorporating taxes and fees into the pricing, eliminating annual contracts, and guaranteeing pricing for up to three years. The company has even removed the 99-cent fee previously attached to most Spectrum services.

Customers will also receive credits when service commitments are not met or when internet outages — lasting more than two hours — are due to issues on the company's end. However, service issues resulting from weather, natural disasters, or power outages are exempt.

"We wanted to make a bold statement about our commitment and our capabilities," Winfrey said, adding, "We also wanted to recognize that we're not perfect and we're putting ourselves under pressure, concrete pressure, to make sure that we can be a better service operator every month and every year from here on out."