State: ‘Time’ out!
Nixes big merger with Charter Communication
Not so fast. The state Public Service Commission on Friday yanked its approval of a merger between cable giants Charter Communications and Time Warner, charging Charter with failing to uphold its end of the deal.
“Charter, doing business as Spectrum, has — through word and deed — made clear that it has no intention of providing the public benefits upon which the Commission's earlier approval was conditioned,” the agency said in a statement.
“In addition, the Commission directed Commission counsel to bring an enforcement action in State Supreme Court to seek additional penalties for Charter's past failures and ongoing non-compliance.”
Charter, the second-largest U.S. cable provider behind Comcast, bought Time Warner Cable in 2016 and rebranded it as Spectrum.
The commission approved the merger in January 2016, but with the understanding that the new company would bring on 36,250 new addresses per year for four years, and improve broadband speeds. Since then, the company twice has been fined $1 million for missing goals.
The commission's 3-0 vote, if it survives expected legal challenges, would bar Charter from operating in New York state.
A Charter spokeswoman said the company has complied with all requests.
“In the weeks leading up to an election, rhetoric often becomes politically charged,” the spokeswoman said in a statement.
“But the fact is that Spectrum has extended the reach of our advanced broadband network to more than 86,000 New York homes and businesses since our merger agreement with the PSC. Our 11,000 diverse and locally based workers, who serve millions of customers in the state every day, remain focused on delivering faster and better broadband to more New Yorkers, as we promised.”
Along with failing to meet deadlines, the commission said Charter has attempted to skirt obligations to serve rural communities, and has used unsafe practices in the field.