New York is officially kicking internet and cable provider Spectrum, aka Charter, out of the state after the company failed to deliver on its fast internet promises. The state required Spectrum to roll out high-speed internet across underserved rural areas when it merged with Time Warner Cable in 2016.
The company failed to do so after two years, and now the state is not only forcing the company to cease operations by revoking its approval of the 2016 merger (the approval was contingent on Charter expanding the Spectrum network), but is also seeking $3 million in penalties. Spectrum has to keep operating, uninterrupted, for 60 days while the state finds a new internet provider to service customers. It’s unclear what Spectrum is planning to do now, but the state is asking it to come up with a transition plan.
The company issued a statement toThe Vergeand said it has “extended the reach of our advanced broadband network to more than 86,000 New York homes and businesses” since the merger. New York expected the company to expand access to an additional 145,000 homes and businesses.
New York State Public Service Commission chair John B. Rhodes said in a statement: “Charter’s non-compliance and brazenly disrespectful behavior toward New York State and its customers necessitates the actions taken today seeking court-ordered penalties for its failures, and revoking the Charter merger approval.”