California Administrative Law Judge recommends approval of Charter-Time Warner Cable deal

Charter’s blockbuster deal to acquire Time Warner Cable and Bright House Networks cleared a major hurdle when a California administrative judge recommended approval of the deal.

Administrative Law Judge Karl Bemesderfer, in a 74-page opinion, recommended that the California Public Utilities Commission approve Charter's takeover plans, but he attached a long list of conditions designed to ensure that the cable consolidation carries benefits to the public. Judge Bemesderfer said the cable merger would bring several advantages to customers in California, including faster Internet speeds and more wireless hot-spots. However, he acknowledged that Charter would become the only provider of broadband Internet service in some areas -- a less than ideal situation. The proposed $67-billion plan would make Charter the dominant pay-TV and Internet service provider in Southern California with more than 2 million customer homes. Judge Bemesderfer outlined several conditions, including requiring Charter to honor Time Warner Cable's existing pricing plans for high-speed Internet service. In addition, Charter agreed not to impose data caps on its customers nor institute usage-based fee structures for at least three years. Judge Bemesderfer also said that Charter would be obligated to build at least 150,000 new line extensions in California to bring broadband service to regions that currently lack coverage. Another provision would require Charter to comply with the FCC's Open Internet rules that require Internet service providers to all treat traffic equally.

The deal is still waiting for approval from the Federal Communications Commission and the U.S. Department of Justice. Those decisions are expected any day. The California Public Utilities Commission is tentatively scheduled to vote on the matter May 12.