Spectrum Might Get Kicked Out Of New York For ‘Recurring Failures’

Spectrum Might Get Kicked Out Of New York For ‘Recurring Failures’

Spectrum Might Get Kicked Out Of New York For ‘Recurring Failures’

The New York State Public Service Commission said on Friday it has revoked its approval of the 2016 merger agreement between Charter Communications Inc and Time Warner Cable, arguing that the US broadband provider failed to meet terms of the merger agreement.

Big quote: "These recurring failures led the Commission to the broader conclusion that the company was not interested in being a good corporate citizen and that the Commission could no longer in good faith and conscience allow it to operate in NY".

"All New Yorkers deserve fast, reliable broadband, and Charter's merger commitments in New York were created to help bring that about".

The decision cuts against a broader nationwide trend of consolidation in the telecom and media industries, although it is limited to NY state and does not cover the more than 40 other states in which Charter does business, including Pennsylvania and New Jersey.

Charter is ordered to file within 60 days a plan with the PSC to ensure an orderly transition to a successor provider (s).

In addition to revoking their approval of the 2016 merger, NY has issued $3 million in fines and referred the case to the State Supreme Court.

In addition to rescinding its approval of the Charter and Time Warner merger, the commission also filed an enforcement action in the New York State Supreme Court to seek $3 million in penalties for past failures and continuing noncompliance.

PSC Chairman John Rhodes said Charter is "simply not serving New Yorkers". In 2016, the two companies merged together with Time Warner Cable.

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Shares of Charter (chtr) initially fell more than 2% on the news, but quickly recovered. In 2016 they were approved to purchase Time Warner Cable under certain stipulations that the Public Service Commission (PSC) says Spectrum wasn't interested in meeting. The company is required to deliver broadband speed upgrades of 100 megabits per second by the end of next year, and reach 145,000 underservered or unserved homes and businesses by 2020. The Commission also said that charter tried to pass the blame for the failuresto other companies, including utility pole owners.

The State considers roughly a quarter of those do not meet the standards set in the PSC's 2016 merger approval conditions. According to the commission, Spectrum has blown past every network expansion target since the merger, while falsely claiming to customers that it is exceeding these commitments.

It's unclear which company would step in to provide service for New Yorkers if Charter is forced to cease operations in the state. During the transition process, Charter must continue to comply with all local franchises it holds in NY state and all obligations under the Public Service Law and the commission regulations.

Charter is the largest cable provider in the state.

"During the transition process, Charter must continue to comply with all local franchises it holds in NY state and all obligations under the Public Service Law and the Commission regulations", the release said.

Spectrum - formerly known as Charter - is one of the most popular cable television and Internet access providers in the United States.

Find the entire decision, go to www.dps.ny.gov, choose "Commission Documents" and enter Case Number 15-M-0388 in the box labeled "Search for Case/Matter Number".

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