dslreports logo
 story category
NY State Says Charter Lied About Meeting Merger Conditions

Charter has already been fined $13 million for failing to complete some fairly modest broadband deployment conditions attached to the company's $79 billion acquisition of Time Warner Cable and Bright House Networks. Now Charter's facing additional scrutiny after regulators discovered the company hasn't been entirely truthful about which service addresses were upgraded by the company as required by its agreement with New York State.

Click for full size
Stop the Cap notes that the New York State Public Service Commission announced this week (pdf) that the Commission is seeking a possible revocation of Charter Communication’s NYC franchise agreement and a $1 million fine for failing to meet its network buildout obligations agreed to as part of its 2016 merger with Time Warner Cable.

The PSC effectively accused Charter of lying to regulators in the company's most recent milestone report, when it asserted it had expanded service to 12,467 addresses in New York City. But when the PSC examined the 490 service addresses Charter claimed to have given service for the first time, they found numerous instances where customers at these locations were already served by Charter.

“In a more egregious example, Charter also listed the Reuters Building as countable toward the December 2017 target in Charter’s January 2018 filing, which has a listed address of 3 Times Square,” the PSC wrote. “Staff could not find any photos of the building prior to 2014 beside aerial views, but construction was completed in 2001, well before the effective date of the current franchise agreements."

In other words, the PSC is accusing Charter of lying about deployments to pretend that it had met merger conditions. And the PSC says it's contemplating either a major fine or revoking Charter's New York City franchise agreement entirely (something history suggests would never actually happen).

"It is critically important that regulated companies strictly adhere to the state’s rules and regulations,” said Commission chair John B. Rhodes. “If a regulated entity like Charter’s cable business decides to violate or ignore the rules, we will take swift action and hold them accountable to the full extent of the law.”

Charter claimed its $79 billion acquisition of Time Warner Cable and Bright House Networks would result in amazing "synergies" for consumers. Instead, most acquired customers received a rate hike and even worse customer service than they'd already grown accustomed to under their previous ISPs. These additional broadband deployments were supposed to counter any potential problems the deal created, and even those appear to be somewhat...theatrical in nature.

Most recommended from 37 comments



TIGERON
join:2008-03-11
Boston, MA

25 recommendations

TIGERON

Member

Pathetic

However I’m glad my home state is adopting its own net neutrality regulations in the absence of the lying jackass-led FCC.
Dampier
Phillip M Dampier
join:2003-03-23
Rochester, NY

20 recommendations

Dampier

Member

Proposed Sanctions

We are going to do a filing this week proposing sanctions against Charter if they are found in violation. Top of the list is an agreement to target areas currently designated for last hope HughesNet satellite internet for Charter buildouts instead, making up any disqualified numbers not by counting new service passings in new housing developments and business parks where Charter would have expanded service anyway without the merger agreement, but on rural areas adjacent to existing Charter service areas that were going to be screwed by NY's "good enough" broadband expansion effort.
Purnerdyl00
join:2016-02-08
Queensbury, NY
Ubee E31U2V1
Tenda Nova MW6
Netgear Orbi

1 edit

16 recommendations

Purnerdyl00

Member

These fines don?t matter

In reality, 1 million dollar in fines is chump change, and Tommy boy Rutledge laughs at the fact that N.Y. thinks it’s doing something to protect consumers. Don’t get me wrong, I live in NY, and so far, I’ve been stuck with 120mbps top speed internet, and while we were upgraded to 100mbps, I still think upstate NY needs more, as 120mbps is laughable. Now it does appear they are working towards this, and so far I have been happy with my service, but knowing how the system works, Charter will simply take these fines and go on with it. So please N.Y., let’s try and do something a little bit different in approach to Charter, like trying to really fine them heavily, such as a $100 million or more, or even taking away the franchise agreement set in place.

Packeteers
Premium Member
join:2005-06-18
Forest Hills, NY
Asus RT-AC3100
(Software) Asuswrt-Merlin

15 recommendations

Packeteers

Premium Member

nyc let verizon get away with it

so why not charter too

fios was contracted to "pass" 100% of the 5-boros by 2017
yet my cousins on the upper west side can't get fios
neither can any business within a dozen block radius,
in some of the most dense and affluent real estate in nyc!

so if nyc lets verizon get away with paying fines,
why should charter give two shits about nyState.

zoom314
join:2005-11-21
Yermo, CA

13 recommendations

zoom314

Member

Spectrum lies a lot

Spectrum Internet Assist is a fraud, if one is disabled and getting SSI, one should be able to get it, yet cause one is not 65+, one can't, so I refuse to pay for TV from Spectrum, and I get FREE TV instead, some in HD, some not in HD, Spectrum will get their money, but not 1 penny more than I am billed($44.99 or $64.99 in August) since Spectrum is a Monopoly...
ham3843
join:2015-01-15
USA

8 recommendations

ham3843

Member

I'm giddy with anticipation.....

I hope the city and boroughs kick Charter to the curb and they lose their franchises!

That would be the lever that would get the Charter BoD and shareholders to fire Tommy Boy.

»www.youtube.com/watch?v= ··· zG71Vu98
Taget
join:2004-07-29

3 recommendations

Taget

Member

I predict...


...in response to all these violations the federal government will approve a merger between Charter and Comcast.
kinda pissed
join:2012-06-06
Newsoms, VA

3 recommendations

kinda pissed

Member

Whatcha wanna know

Why do all these anon posters have these weird characters all over their post