Cuomo and the State of New York are arguing with Spectrum about access to broadband and franchise payments in New York City.
Jamie Germano

ALBANY – The New York Electricity Authority has canceled Charter Communication in its state on Friday. I lived up to the terms of its 2016 merger with Time Warner Cable.

For 60 days, the Civil Service Commission gave Charter a plan to transfer its New York operations to a new cable, Internet and telephone provider that would lift the state's prior approval for the large cable fusion.

Charter, acting as Spectrum Cable in New York, was locked in a fight with Governor Andrew Cuomo's government over the introduction of high-speed Internet access in rural areas of the state.

On On Friday, the commission tightened this fight by revoking its approval of the Charter Time Warner Cable Fusion 2016, which would prevent the company from operating in New York and would likely initiate a long legal battle.

Decision unanimously at a hastily convened meeting Friday, along with a civil suit hoping to bring additional financial penalties against the company.

PSC chairman John Rhodes said the charter is "simply not serving New Yorkers."

"We need to look for another provider," Rhodes said before agreeing to the measures.

What's next?

In a statement, a charter spokesman did not say what steps the company could take to block the order. [19659010] The Public Service Commission's mandate requires the company to maintain service throughout the state while planning to transition to a new business.

Charter is the country's largest cable operator, offering television, Internet and telephone services to more than 1,150 communities in New York with a potential customer base of 5 million, according to the Public Service Commission

The Cable Provider and the State Disagreement over the speed with which the company has set up high-speed Internet in less densely populated areas of the state, which was an important provision in the State Commission's approval of the $ 55 billion Time Warner Cable Fusion 2016.

More: Is Spectrum cable "misleading" customers? Why New York says it is so

More: Spectrum Cable with Big Punishment for Slow Internet Rollout in New York

More: New York's Battle with Spectrum: What You Should Know

As part of the permit, Charter had to expand its broadband network to 145,000 new homes and businesses in rural areas of the state and meet certain benchmarks

The state commission says the charter has repeatedly missed its six-month benchmarks, including a deadline of 2018 to reach 58,417 new addresses in areas that are not densely populated.

The Charter denies this claim, however. and said it's ahead of schedule. The company claims to have added 86,000 homes and businesses to its broadband network across the country.

The Dispute

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Charter Communications is at odds with the regulators in New York. [Photo: AP file photo]

The disagreement comes to counting the addresses.

The commission canceled more than 18,000 addresses, which counted charter to the total, most of which were New York City addresses the commission barely as "less densely populated" areas.

Charter also included some addresses in other densely populated cities such as Rochester and Mount Vernon, the state claims.

In a statement, charter spokesman Andrew Russell suggested The commission's actions were politically motivated, but revealed what the next step in the company would be.

Cuomo is back for election this year.

"In the weeks leading up to a vote, rhetoric is often politically charged," Russell said. "The fact is, Spectrum has expanded the reach of our advanced broadband network to more than 86,000 New York households and businesses since our merger agreement with PSC."

Russell continued, "Our 11,000 diversified and locally based employees serve millions of customers in the state every day, continuing to be mindful of providing more New Yorkers with broadband faster and better, as we promised."

New Fines

The Civil Service Commission had previously imposed a fine of $ 2 million on broadband deadlines and on Friday decided that the company would lose $ 1 million in credit approved in the merger.

The Commission also approved a lawsuit seeking additional penalties from the company, notably higher fines.

The orders were approved by a 4-0 vote by the Commission.

James Alesi, a former Senator from the Rochester area who sits on the commission described the orders as difficult but necessary steps.

"It is really sad for me to say that I can support that and I will support it," said Alesi. "We never want such a firm action against a company, but in the case of a business that does not do what it says, it's not just empty promises that work to the detriment of people." [19659010] More: Is Spectrum cable "misleading" customers? Why New York says it is so

More: Spectrum Cable with Big Punishment for Slow Internet Rollout in New York

More: New York's Battle with Spectrum: What You Should Know

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Jon Campbell is a correspondent for the Albany Bureau of the USA TODAY Network.

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