The company should maintain smooth operation of all its provided services (cable networks, Internet and telephony) within 60 days, will be done until the transfer of its functions to the provider-successor.
In a meeting on Friday, the New York State Public Service Commission voted unanimously to revoke its approval of the 2016 merger agreement between Charter and Time Warner Cable because, since the merger, the company has apparently made it clear that it has no intention of following through with its side of the bargain.
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.
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. "(T) he time has come for stronger actions to protect New Yorkers and the public interest", commission chairman John B. Rhodes said in a prepared statement.
The commission also directed its lawyers to bring an enforcement action in State Supreme Court to seek additional penalties for Charter's past failures and ongoing non-compliance. "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". "Such egregious conduct can not be condoned and the only reasonable remedy that remains is for the commission to revoke the 2016 merger approval and order Charter to plan for an orderly transition to a successor provider (s) to serve its NY state customers". It must file a plan within 60 days to ensure an "orderly transition to a successor" provider or providers for NY customers.
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 2016, the two companies merged together with Time Warner Cable.
Experts have reported that Charter Communications is going to be putting an appeal to the order made by the state of NY, though it likely will not be flipped over; it looks like Charter Communications is going out and never coming back in.
The state commission says Charter has repeatedly missed its six-months benchmarks, including a June 2018 deadline to hit 58,417 new addresses in areas that aren't densely populated. 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. "I am pleased that the PSC is taking these serious concerns to heart, and is looking out for the hundreds of thousands of Spectrum customers across the state being shortchanged when it comes to cable and Internet service". During the transition process, Charter must continue to comply with all local franchises it holds in the state and all obligations under the Public Service Law and the Commission regulations, and must ensure no interruption in service is experienced by customers.