New York State Public Service Commission Approves Settlement with Charter Communications

The New York State Public Service Commission approved an agreement with Charter Communications (known as Spectrum) to resolve disputes over the Commission’s network expansion condition that was contained in the Commission’s approval of the company’s merger with Time Warner Cable in 2016. Under the terms of the agreement, Charter will expand its network to provide high-speed broadband service to 145,000 residences and businesses entirely in Upstate New York and will pay an additional $12 million to expand broadband service to additional premises. Under the terms of the settlement:

• Charter will complete the expansion of its existing network to pass 145,000 addresses entirely in Upstate New York. This expansion will not include New York City addresses, which the company had previously planned to include in an earlier buildout plan. To date, Charter has passed approximately 65,000 of the required 145,000 addresses. To comply with the settlement, the Department estimates that the company will invest more than $600 million, more than double the public benefit value estimated by the Commission in its 2016 merger approval.
• Charter’s expansion will be completed by September 30, 2021, in accordance with a schedule providing frequent interim enforceable milestone requirements, with corresponding reporting and accountability.
• Charter will also pay $12 million for additional broadband expansion projects at locations to be selected by the Department of Public Service and the New York State Broadband Program Office. Of the $12 million payments, $6 million will be administered by the New York State Broadband Program Office and $6 million will be paid into an escrow fund for work that will be completed by Charter at the State’s direction.