The state Public Service Commission on Friday revoked its previous approval of Charter Communications' merger with Time Warner Cable. NY accepted the deal at the time on the contingency that the company meet several performance goals in the future. Charter has 60 days to file an "orderly transition" plan to a new cable operator, and must continue to comply with regulations and serve all local franchises in NY state until that time.
Under the terms of its $60 billion merger with Time Warner Cable, Charter agreed to expand its broadband services over four years to reach a total 145,000 unserved and underserved homes in less-populated areas of the state. It could also force Charter to find a buyer for its NY systems, though Charter is likely to challenge the order, a person familiar with the company's thinking said.
The Commission went on to add that because of Charter's repeated failures to meet deployment guidelines and its continued efforts to mislead regulators, it could "no longer in good faith and conscience allow it to operate in New York". They may face more penalties in the state Supreme Court.More news: MLB Rumors: Cubs Acquire Pitcher Cole Hamels In Trade With Rangers
"In the weeks leading up to an election, rhetoric often becomes politically charged", Charter said in a statement Friday.
The company's purposeful obfuscation of its performance and compliance obligations to the Commission and its customers. "Charter's non-compliance and brazenly disrespectful behavior toward New York State and its customers necessitates the actions taken today". As a result of Charter's adamant refusal to abide by the conditions of the merger approval, the Commission ordered Charter to develop a transition plan.
The commission is giving Charter 60 days to come up with an exit plan from NY and has ordered the firm to pay $3 million in penalties.More news: European Union and United States kiss and make up on trade
Regulators in NY are reneging on their approval of Charter Communications acquisition of Time Warner Cable, alleging the cable provider broke its promise to deliver high-speed broadband to rural customers. NY will not tolerate Charter's gaslighting its own customers into believing it is meeting its promises.
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 Charter spokesman did not respond to requests for further comment.More news: Messi, Mbappe in but Neymar omitted from FIFA Best list
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.