NY DPS OKs $13 Million Charter Settlement Over Broadband Buildout

New York public service commissioners cleared Charter Communications' $13 million settlement with New York State for failing to meet a cable network buildout condition in the PSC order that OK’d the company’s buy of Time Warner Cable (see 1708220021). They voted 4-0 Thursday for the order at a livestreamed meeting. Rather than pay a penalty, Charter agreed to pay $1 million in equipment grants to provide computer and internet access to low-income users and to set aside $12 million as a security to meet the network expansion commitment, the Department of Public Service said. The company also agreed to finish the buildout in increments over six periods through May 18, 2020. The company agreed to forfeit its right to earn back up to $1 million each time it misses a six-month target, DPS said. Charter agreed to develop a communications plan within 60 days of settlement execution informing New Yorkers if they’re part of the buildout plan. “We need to be vigilant about ensuring full and complete compliance by taking these additional steps,” Chairman John Rhodes said. Commissioner Gregg Sayre said it’s a “fair settlement,” “far better for customers and for the state than simply pursuing penalties.” Sayre wants improvements to pole-attachment processes statewide to expedite broadband rollout in New York. "Charter has met and even exceeded the vast majority of our key year-one commitments in New York associated with the merger," a spokesman said. "Delays in pole-attachment approvals and make-ready by pole owners made it impossible to extend our network to the targeted number of homes in the first year post-merger." Thousands have access "where approvals and make-ready have occurred, and we have a solid deployment plan to reach the thousands of additional homes in our commitment," he said.