New York Orders Charter Out of State

Yesterday, it was reported that Charter Communications could lose its license in New York because of its failure to meet merger-related broadband deployment commitments. Today, according to Ars Technica, the New York State Public Service Commission (PSC) voted to revoke its approval of Charter Communications' 2016 purchase of Time Warner Cable (TWC). "The PSC said it is ordering Charter to sell the former TWC system that it purchased in New York, and it's 'bring[ing] an enforcement action in State Supreme Court to seek additional penalties for Charter's past failures and ongoing non-compliance," reports Ars. From the report: Charter has repeatedly failed to meet deadlines for broadband expansions that were required in exchange for merger approval, state officials said. The PSC has steadily increased the pressure on Charter with fines and threats, but Charter never agreed to changes demanded by state officials. As a result of today's vote, "Charter is ordered to file within 60 days a plan with the Commission to ensure an orderly transition to a successor provider(s)," the PSC's announcement said. "During the transition process, Charter must continue to comply with all local franchises it holds in New York State and all obligations under the Public Service Law and the Commission regulations. Charter must ensure no interruption in service is experienced by customers, and, in the event that Charter does not do so, the Commission will take further steps, including seeking injunctive relief in Supreme Court in order to protect New York consumers." The five types of misconduct that the commission cited to support its decision include: the company's repeated failures to meet deadlines; Charter's attempts to skirt obligations to serve rural communities; unsafe practices in the field; its failure to fully commit to its obligations under the 2016 merger agreement; and the company's purposeful obfuscation of its performance and compliance obligations to the Commission and its customers.