The company is the major cable, Internet and phone service provider for two million subscribers in Rochester, Buffalo, Syracuse, Albany, Manhattan, Staten Island, Queens, and parts of Brooklyn. The Commission also requires $3 million in penalties from the company. NY accepted the deal at the time on the contingency that the company meet several performance goals in the future.
The 3-0 vote reflected the commission's displeasure with Charter - which provides cable TV, internet and phone service in NY state under the Spectrum name - for falling short of required broadband internet expansion in the state, especially in rural areas.
NY authorities have moved to oust Spectrum, the state's largest TV and internet service provider, claiming the company failed to serve customers and live up to promises.
PSC Chairman John Rhodes said Charter is not serving New Yorkers.
ALBANY, N.Y. NY regulators revoked their approval of Charter Communications Inc.'s merger with Time Warner Cable Inc. today and ordered the company to find another cable provider for its more than 2 million customers in the state.
Stamford, Connecticut-based Charter said in a prepared statement that "In the weeks leading up to an election, rhetoric often becomes politically charged".
Since then, NY says Spectrum has fallen short in almost every aspect of the deal, failing to meet the incremental deadlines and obligations for several rural communities, they have engaged in unsafe field practices, and they have attempted to obfuscate their shortcomings by blaming other companies.
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Charter says it has extended broadband service to 86,000 homes and businesses.
That pledge was one of the "most critical" conditions attached to the merger approval, the commission argued in an order posted online Friday. NY will not tolerate Charter's gaslighting its own customers into believing it is meeting its promises.
The commission is giving Charter 60 days to come up with an exit plan from NY and has ordered the firm to pay $3 million in penalties.
Charter was given 60 days to file a plan for a successor company take over operations that serve 2 million customers in the state.
The Public Service Commission, however, said in its prepared statement that Charter "has - through word and deed - made clear that it has no intention of providing the public benefits upon which the commission's earlier approval was conditioned".
Charter is the largest cable provider in the state. In a statement, the company said they have "extended the reach of [their] advanced broadband network to more than 86,000 NY homes and businesses".
A Charter spokesman did not respond to requests for further comment.