State regulators move to order Charter out of NY

PSC revokes Charter's authorization to operate in state

"Charter's non-compliance and brazenly disrespectful behavior toward New York State and its customers necessitates the actions taken today".

Charter says it remains focused on expanding broadband and said "rhetoric often becomes politically charged" in election years.

Charter will undoubtedly do everything in its power to block this move, so don't expect Spectrum to suddenly vanish from NY in two months, but perhaps this will at least lead to some positive changes.

In addition, attorneys for the state public service commission will seek fines on Charter of $100,000 per day until the company fulfills its promise to extend connectivity to households and businesses that have slow or no internet connection.

Back in March, we brought you word that Charter was skating on thin icewith the State of NY for allegedly lying about Spectrum broadband deployments, and not living up to its promises to expand rural broadband as part of its 2016 merger with Time Warner Cable.

The PSC accused Charter of repeatedly failing to meet deadlines, not filling its obligations to serve rural communities and "purposeful obfuscation of its performance". This means that the company can no longer operate in the state and in essence forfeits future revenue from roughly 2 million subscribers. But the fact is that Spectrum has extended the reach of our advanced broadband network to more than 86,000 NY homes and businesses since our merger agreement with the (commission).

As a result, Charter will now have to pay a total of $3 million in penalties.

NY is accusing Charter of failing to meet its commitments have led to the move. New York Gov. Andrew M. Cuomo (D) has not shied away from criticizing Charter for its delays; in May, he foreshadowed regulators' decision by saying the public service commission had initiated "legal action" against the company.

If you live in NY, what's your take on this decision? It also failed to expand its footprint to cover 145,000 underserved businesses and homes. Since then, there's dispute about how their buildout is going; the company has claimed that they've extended their network to over 61,000 homes so far, but a commission audit in March found 14,000 of those were ineligible, as the company was already required to build to those.

It's rare to see a state try to undo a merger this way and prohibit a company from operating (in its current form) in the state, but NY is clearly unhappy with Charter's actions in the wake of this merger, and displeased enough that they're moving beyond fines to merger revocation.

A spokesman for the NYPSC didn't respond to requests for comment.

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