State fines Spectrum $2 million, threatens to undo merger

ALBANY, N.Y. — New York State is threatening to undo the merger that created Spectrum, saying the company has failed to keep its promises to expand internet access.

On Thursday, the New York State Public Service Commission (PSC) ordered Spectrum to pay two $1 million fines and ordered that the company unequivocally accept the terms the state set in 2016 for the merger of Time Warner Cable and Charter “or face the risk of having the merger revoked,” the PSC said in  a release.

In 2016, the PSC approved the acquisition of Time Warner Cable by Charter, and required the combined company to add internet availability for 145,000 previously unserved or underserved homes or offices within four years.

The PSC said in the release that Spectrum has fallen short of required milestones toward the goal of 145,000. State staffers investigated a list of addresses Spectrum claimed to have made reachable by internet and rejected 18,363 addresses — including more than 4,000 Upstate — saying they were either along existing internet access or were supposed to be reached by Spectrum under other orders.

The PSC had previously rejected thousands of addresses Spectrum claimed to have brought internet access.

In addition to fining Spectrum $2 million, the PSC called out the company on its claim that it was not bound by the 2016 rules. “Given the company’s continued intransigence, the commission today ordered that the company unconditionally accept all of the conditions and requirements spelled out in its 2016 order or face subsequent commission action,” the PSC said.

Gov. Andrew Cuomo issued a statement supporting the PSC. “If Charter had not agreed to the build out, the franchise would not have been approved, and the company would not have profited from the large New York State market.”

Cuomo went on to blast Spectrum News for its coverage of the matter. “Make no mistake, Charter has not only violated its franchise agreement, it is deceiving the public. Spectrum news coverage has not only conveniently failed to fairly cover the company’s violations, but they also make false claims as to their performance for New Yorkers. Their broadband build out is not on time. Nor is it a voluntary effort to benefit our citizens, as the company might have people believe. Instead, it was an express condition of their franchise approval, which is very lucrative.”

In its own statement, Spectrum said it has expanded its network infrastructure, “to bring broadband to tens of thousands of residences and businesses in New York State; we exceeded our last commitment and we continue to meet our merger obligations.”