The commission said Charter Communications, the second largest cable provider in the country, had not lived up to its promises in acquiring Time Warner Cable as part of $56.7 billion transaction in 2016.
The Public Service Commission's order requires the company to maintain its service throughout the state while planning for a transition to a new company.
Yesterday, July 27, the Commission on the public services of the state of NY (Public Service Commission - PSC) announced that the company Charter Communications, which owns Spectrum, henceforth it is forbidden to provide their services to residents of the Big Apple and around the state.
The commission alleges Charter has repeatedly failed to meet deadlines for improving internet speeds and has attempted to skirt obligations to provide high-speed internet to rural communities. "With this enforcement action, it's good to see the New York Public Service Commission taking them seriously". "(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.
PSC is seeking court-ordered penalties against Charger to revoke merger approval and requires the service provider to continue serving customers for the 60 days they have before ceasing operations in the state.
Charter says it has extended broadband service to 86,000 homes and businesses.
When the commission approved the merger back in January 2016, among other conditions, Charter promised to offer broadband service to at least another 145,000 households in the state in poorly served rural areas.
Company Spectrum - the largest in the state provider of cable, Internet and phone services, with more than two million NY subscribers in Manhattan, Staten island, Queens and parts of Brooklyn, as well as in such major cities of the state like Buffalo, Rochester, Syracuse and Albany.
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. The suit also claimed that Spectrum-Time Warner subscribers were "getting dramatically short-changed on both speed and reliability".
In addition, the Commission has directed its counsel to bring an enforcement action in State Supreme Court to seek additional penalties. 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", he added. Charter also must ensure that cable and internet customers' service is not interrupted during the transition.
Gov. Andrew M. Cuomo's administration moved to ban Charter Communications from NY on Friday, ordering the internet, television and phone behemoth to leave the state and hand over its business to another company.