TWC outlines battle plan to see off Charter Time Warner Cable outlined a three-year battle plan to revive its residential offerings and ramp up its business services group, as the second-largest US cable operator by subscribers spurns a $61bn takeover bid from smaller rival Charter Communications. After three years of accelerating declines in video subscribers, Time Warner Cable has pledged to return to growth through improving its poorly rated customer service and implementing new technologies. Those plans involve introducing digital video offerings to its customers which number about 15m, as well as increasing internet speeds and wireless internet services. The plan is designed to boost revenue and profits, delivering total revenue growth of about 4 to 5 per cent this year, compared to a 3.4 per cent increase in revenues in 2013. "We're geared up to manage this company for the long-haul," Rob Marcus, Time Warner Cable chief executive, said on Thursday during a 90-minute call with analysts. He became chief executive in January and has worked at the company since 2005. The New York-based company is attempting to prove that it is better off operating independently as it faces pressure from some of its largest shareholders to engage with Charter in an offer that it rejected as "grossly inadequate." This month Charter made an offer for Time Warner Cable worth $61bn including debt that values the company at $132.50 per share. Charter is backed by John Malone's Liberty Media. Time Warner Cable said that it was not seeking to sell but would entertain an offer at a deal price of about $160 a share. Comcast, the largest cable operator in the US, has stepped into the fray. Comcast has entered discussions with Charter about which assets it might buy if Charter should win its pursuit of Time Warner Cable. "That leaves Time Warner Cable both financially and morally isolated," said Craig Moffett, an analyst with MoffettNathanson Research. It is now much, much harder for Time Warner Cable's board to continue to stonewall Charter. Charter has criticised Time Warner Cable's operations and said it is in a better position to run the company. To bolster its defence, Time Warner Cable on Thursday released a presentation comparing the two companies and claiming it is in a better position than Charter, reflecting years of innovations and investments. "Some of the comments made by Charter management imply that Time Warner Cable is somehow behind Charter in terms of operating metrics and investment," Mr Marcus said. This should set the record straight. The news comes as Time Warner Cable reported that its net income tumbled 9.3 per cent to $1.95bn in 2013 from $2.16bn in 2012. Total revenues for the year increased 3.4 per cent, fuelled by a 1.2 per cent rise in residential services revenues and a 21.6 per cent increase in business services revenues. Time Warner Cable primarily has boosted revenues by charging higher prices instead of increasing its number of customers. The fragmented US cable industry is challenged by steep competition for television services from satellite and telecoms operators, as well as so-called cord-cutting, where people cancel pay-television subscriptions in favour of cheaper online streaming alternatives. Time Warner Cable lost 833,000 video subscribers in 2013, following a loss of 532,000 in 2012 and 453,000 in 2011. The folks at Charter and Liberty are very smart guys. They think they see a chance to force a trade before the public realised what we can achieve with our standalone plan Artie Minson, TWC chief financial officer The company pointed to positive momentum in recent months, with net additions of customers improving each month in the fourth quarter and positive momentum in January. "Last year's residential subscriber performance was dismal," said Artie Minson, chief financial officer at Time Warner Cable. We have made significant progress in turning this ship on the subscriber side and we're entering the year with renewed focus. They think they see a chance to force a trade before the public realised what we can achieve with our standalone plan," he added. Time Warner Cable shares have increased about 40 per cent since news of Charter's interest emerged in June. In mid morning trading on Thursday, Time Warner Cable shares were about flat at $133.20. . The battle has probably only just begun to heat up, with about two weeks remaining before the deadline for Charter to nominate directors. That leaves the option for Time Warner Cable to either engage with Charter or face a hostile takeover should Charter not walk away from its pursuit of a deal.