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New York fines Charter for violation of buildout requirement

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New York fines Charter for violation of buildout requirement

The New York State Public Service Commission ordered Charter Communications Inc. to pay a fine of $2 million for failing to make broadband available to 145,000 underserved homes and businesses in New York as part of the conditions of approval for its Time Warner Cable Inc. deal.

In its order regarding Charter's failure to meet its buildout obligations, the commission rejected 18,363 addresses, including 12,467 in New York City and 4,096 in the cities of Buffalo, Rochester, Syracuse, Schenectady, Albany, and Mt. Vernon, to which Charter claimed it expanded network as part of its required buildout requirement.

The commission said June 14 that these addresses were already passed by Charter or another broadband provider, or that Charter was separately required to pass the addresses pursuant to state regulations and/or franchise agreements.

Charter is now required to remove the rejected addresses and file a revised buildout plan within 21 days. In addition, Commission Chair John Rhodes said the company has to unconditionally accept all conditions required in the 2016 merger order or face "severe consequences."

In June 2017, Charter reached a $13 million settlement with the New York State Department of Public Service over its failure to meet one of the conditions.