By its own admission, PSC said, "Charter has failed to meet its commitment to expand its service network that was specifically called for as part of the commission's decision to approve the merger between Charter and Time Warner Cable".
The New York State Public Service Commission (PSC) handed down the decision Friday.
Charter serves 41 states and is New York's largest cable provider.
The commission said the U.S. broadband provider failed to live up to its agreement as part of the merger to build internet access to an additional 145,000 households and businesses in rural areas of NY under-served by internet providers.
The decision came after more than a year of administrative enforcement efforts to get Charter to comply with the commission's merger order, the release said.
"Charter's non-compliance and brazenly disrespectful behavior toward NY state and its customers necessitates the actions taken (Friday) seeking court-ordered penalties for its failures, and revoking the Charter merger approval". "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", Andrew Russell, director of communications for the company's Northeast branch, said in an email. Additionally, the PSC alleges that Charter specifically sought to obfuscate its noncompliance with the 2016 merger agreement.
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Charter now has 60 days to file a transition plan for an orderly transition to one or more successors.
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, the Commission has directed its counsel to bring an enforcement action in State Supreme Court to seek additional penalties. Specifically, Spectrum failed the commission's order that it build new service lines to pass 145,000 residences and businesses in poorly served communities within the former Time Warner Cable franchise area.
"All New Yorkers deserve fast, reliable broadband, and Charter's merger commitments in New York were created to help bring that about". New York Gov. Andrew Cuomo 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. Charter also must ensure that cable and internet customers' service is not interrupted during the transition.
"In the weeks leading up to an election, rhetoric often becomes politically charged", Russell said. "What is just as bad is that thousands of New Yorkers who are waiting for the broadband access Spectrum keeps advertising it is providing are still stuck with 20th century technology".
NY authorities have moved to oust Spectrum, the state's largest TV and internet service provider, claiming the company failed to serve customers and live up to promises.