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New York revokes Spectrum’s license to operate in state

By Jules Wang July 29, 2018, 1:57 pm

The New York Public Service Commission has rescinded its approval of the 2016 merger between Charter and Time Warner Cable, the two of which currently operate under the name of Spectrum.

The commission found that the company has failed to carry out several stipulations by agreed upon deadlines per its merger. It has also committed additional misconducts such as unsafe field procedures and “purpose obfuscation of its performance and compliance obligations to the Commission and its customers.”

Most importantly, Spectrum has failed to build out its broadband network to 145,000 households in rural areas of the state by June of this year — BGR reports by Spectrum’s own admission that it currently only has 86,000 of those customers connected at the moment.

“Despite missing every network expansion target since the merger was approved in 2016,” the commission’s statement reads, “Charter has falsely claimed in advertisements it is exceeding its commitments to the State and is on track to deliver its network expansion.”

The company will have 60 days to submit a service transition plan to the commission, but will continue to operate until a competitor is prepared to take over coverage of more than 2 million customers in about 1,150 municipalities in the state. It will also have to pay a $1 million fine for missing the latest deadline — Spectrum has already been penalized $2 million for tardiness. Charter is expected to appeal the decision with the state and, perhaps, through legal means.

Spectrum recently launched Spectrum Mobile, an MVNO wireless service based on Verizon’s cellular network and a combination of Spectrum and Xfinity Wi-Fi hotspots.

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