Published: Sat, July 28, 2018
Hi-Tech | By Kristin Zimmerman

NY gives Spectrum 60 days to transition to successor

NY gives Spectrum 60 days to transition to successor

New York's public service commission is trying to remove Spectrum, the state's largest TV and Internet service provider, because it allegedly reneged on commitments and has failed to properly serve customers.

"Charter's repeated failures to serve New Yorkers and honor its commitments are well documented and are only getting worse", Commission Chair John Rhodes said in a statement. 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.

In this press statement, Public Service Commission regulators said on Friday, July 27 that Spectrum - the largest cable provider in ny - failed to comply with several conditions mandated when the state approved Charter's merger with Time Warner Cable, 2016. In order for the deal to be approved, Charter had to make several promises to New York State, but two years later, state officials are underwhelmed with the progress that the merged company has made on all fronts. The company must provide uninterrupted service while the state transitions to a new service provider, the commission said. The company said its workers "remain focused on delivering faster and better broadband to more New Yorkers, as we promised".

The PSC has fined Spectrum Cable's parent company for repeatedly missing its broadband and network expansion targets, a condition of its merger with Time Warner Cable.

The commission said the US 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.

John Sipos, the Public Service Commission's deputy general counsel, said the commission "explicitly conditioned its approval [of the merger] on a host of conditions created to yield incremental net benefits to NY". One solution could see Charter spinning off its NY division; it's also possible that the division could be sold to someone else.

The commission invalidated more than 18,000 addresses Charter was counting toward the total number, with most of those being New York City addresses the commission says hardly count as "less-densely populated" areas. And on Friday, the commission said it will seek to impose additional penalties.

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