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For Immediate Release: 09/14/17
John B. Rhodes, Chair
Contact: James Denn | James.Denn@dps.ny.gov | (518) 474-7080
17067 / 15-M-0388
September 14, 2017
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PSC OKs $13 Million Charter Communications SettlementSettlement Resolves Cable Giant’s Failure to Expand Network As Ordered; Forces Cable Company to Commit to Detailed Compliance Plan; $1 Million Set Aside to Help Low-Income Customers |
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ALBANY — The New York State Public Service Commission (Commission) today announced approval of a $13 million settlement agreement with Charter Communications Inc. after the cable company failed to build-out its cable network as required in last year’s approval of Charter’s acquisition of Time Warner Cable Inc. The $13 million settlement is the largest cable company financial settlement of its kind in state history and possibly the largest in the nation’s.
“In its approval of the merger, the Commission required Charter to undertake several types of investments and other activities,” said Commission Chair John B. Rhodes. “While Charter is delivering on many of them, it failed to expand the reach of its network to un-served and under-served customers at the pace it committed. We are taking these additional steps to ensure full and complete compliance.”
On Jan. 8, 2016, the Commission approved Charter’s acquisition of Time Warner Cable Inc., a company that provides television, internet and voice services, using strengthened review standards signed into law by Governor Cuomo. To obtain approval, Charter agreed to a number of conditions required by the Commission, including delivering broadband speed upgrades to 100 Mbps statewide by the end of 2018, and 300 Mbps by the end of 2019, and building out its network to pass an additional 145,000 un-served or under-served homes and businesses within four years of the closing of the transaction in four equal phases of 36,250 premises per year.
While Charter has reported that it completed the first speed upgrade ahead of schedule, as of May 18, 2017, it had only extended its network to pass 15,164 of the 36,250 premises it was required to pass in the first year. Under the revised agreement, Charter commits to completing its build-out requirement of 145,000 new passings in 21,646 increments over six periods through May 18, 2020.
To ensure the company keeps its promise, Charter will forfeit its right to earn back up to $1 million each time it misses a six-month build-out target. The actual amount forfeited will vary, depending upon the percentage of the target missed and whether or not Charter can demonstrate it has timely performed specific tasks.
As part of the settlement agreement, Charter developed a website (www.bldlkup.com) to inform homeowners and businesses whether their address is included in Charter’s broadband expansion plan.
Charter is the largest cable provider in the State. It provides digital cable television, broadband internet and VoIP telephone service to more than two million subscribers in New York State in more than 1,150 communities, with a potential customer base of five million households in its franchise areas. The company provides cable television, Internet and telephone service in the major metropolitan areas of the State: Buffalo, Rochester, Syracuse, Albany and the boroughs of Manhattan, Staten Island, Queens and parts of Brooklyn.
The Commission’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 15-M-0388 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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