Photo: John Carl D & # 39; Annibale
Charter Communications and the Public Service Commission have reached an agreement on Friday in their long-standing feud over the expansion of the company's Spectrum network Internet extension in the state.
In fact, the agreement costs the charter more than $ 600 million – twice the original cost of the required state expansion through the purchase of Time Warner Cable in 2016.
"Today the (PSC staff) shared with Charter Communications made a proposal to settle disputes about the conditions of network expansion by the Public Service Commission, "PSC Chairman John Rhodes said in a statement. "If the agreement is approved (by the Commission), the proposed agreement will allow the parties to press ahead with the critical work to expand broadband access."
In July, the PSC voted to revoke the charter's license to operate after the PSC, stating that Charter had breached the 2016 Times Warner Cable takeover in New York. Once the PSC agreed to the deal, Charter needed to expand its Spectrum cable TV and Internet network to 145,000 potential customers in areas of the state that did not have high-speed Internet service.
The PSC had alleged that Charter had misled the Commission's progress on expansion and addresses for which high-speed Internet was already available, such as in New York City.
Charter denied the allegations and launched a public relations campaign that included only PSC chairman John Rhodes, one of Gov. Andrew Cuomo.
The PSC voted to revoke its approval of the Charter-Time Warner Cable Agreement on July 27 and ordered Charter to draw up a six-month plan to phase out the state and sell its Spectrum network.
However, the two sides are in negotiations immediately after the vote to try to uphold the Charter in the state.
On Friday, the terms of the settlement were submitted to the PSC, which still has to approve the deadline.
The deal sets Charter's current grid expansion to 64,827 passings, which means how many new addresses its network can now reach. The company has until September 30, 2021 reach 145,000 addresses.
The original cost of the charter extension was estimated at $ 305 million. But with more stringent requirements outlined in the deal, expansion will cost double.
"As a result of this agreement, the Department estimates that Charter
must spend more than twice the amount originally estimated by the bank as a public benefit to the network expansion conditions and will provide high-speed broadband to more than 145,000 households and Companies in Upstate New York bring, "wrote the staff of Charter and PSC in a cover letter to the PSC.
Charter will also set up a $ 6 million fund, which it will pay to expand its network beyond its 145,000 addresses. It will also set up a second $ 6 million fund that the state will use to fund broadband deployment across the country through charters and other businesses.
"Charter and the (PSC) believe this action is an important step forward in making high-speed broadband available to all New Yorkers," said charter spokesman Andrew Russell. "As a result, parties in New York State are investing even more money than originally planned, bringing economic and social benefits to the education community High-speed broadband in areas where access is often limited. "