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NY PSC Clarifies Broadband Speed Requirement Merger Terms

Charter Communications is not obligated to upgrade New York internet customers to a minimum internet speed of 300 Mbps, according to a letter of clarification directed to Stop the Cap! and received today from the New York State Department of Public Service.

DPS:

In the Commission’s 2016 order, Charter was required to offer broadband internet service with speeds up to 100 Mbps to all customers served by its New York networks (including its Columbia County systems) by the end of 2018; and offer broadband internet service with speeds up to 300 Mbps to all customers served by its New York networks by the end of 2019. At the time of the Commission’s decision, although Time Warner operated some systems in New York that were already capable of offering customer speeds up to 300 Mbps, the majority of Time Warner customers in Upstate New York were limited to broadband speeds of 50 Mbps.

Charter was therefore required to upgrade its network to be able to offer broadband service at speeds up to 300 Mbps by the end of 2019 but was not required to increase its minimum service offering to 300 Mbps. Charter has reported that it has complied with this condition ahead of schedule and Department of Public Service Staff has begun the process of independently field-testing Charter’s network to verify compliance with the condition.

Stop the Cap! raised this issue with the Commission as part of the recent settlement agreement between New York State and Charter Communications, and sought an official clarification. Approximately 40% of Charter’s national footprint now receives 200 Mbps download speeds while most New Yorkers receive just 100 Mbps for the same price, putting the state at a disadvantage.

Dampier

“The Commission’s language in the original merger agreement was unclear, because Time Warner Cable had already embarked on a statewide upgrade to its so-called ‘Maxx’ service tiers, which included free speed increases, negating most of the benefits of the state’s condition requiring Charter to upgrade broadband speeds as part of its terms to approve the merger,” said Phillip Dampier, founder and president of Stop the Cap! “In fact, this merger made things worse for New Yorkers because customers would have been getting Time Warner Cable Maxx speeds as much as a year earlier than what Spectrum finally delivered across the state, and customers would have been offered a number of options for less costly internet service that Spectrum dropped.”

Shortly after the merger was approved, Charter placed a moratorium on Time Warner Cable Maxx upgrades and spent months attempting to knit Charter’s existing systems with the much larger Time Warner Cable.

Time Warner Cable Maxx speeds were well on the way throughout Upstate New York before Charter acquired the company and issued an upgrade moratorium.

“Consumers already know from their cable bills that this merger was just another bad deal for New York, and now nearly half of Spectrum’s national service area gets twice the speed Upstate New York gets for the same price, and there is no pressure on the company to deliver any additional upgrades,” Dampier added.

Stop the Cap! also urged the Commission to do all it could to make life easier for customers in the New York City area, where Charter has been trying to rid itself of union technicians that have been on strike for over two years.

“For all the talk by state officials, including the governor, it appears there is no end in sight for this strike and customers are caught in the middle,” Dampier said. “We hear frequently from New York City consumers about substandard repair work and unacceptable installations that suggest the company is not using the best available workforce to take care of customer needs. Charter is making loads of money in profits and can afford to offer a square deal to workers to end this strike and get these technicians back to work.”

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  • waldo Barnes: Hate those Rats...
  • John C. Hall: What you say is still true, in 2020. Our home phone service is very high and they offer only 1 home phone package. To drop the home phone line and k...
  • Kenneth: I want to sue them for abandoning my system and my investment in it....
  • Phillip Dampier: The thing about this policy change is that it appeared as a cryptic bill notice buried on a single invoice mixed in with lots of other notices. Most p...
  • Phillip Dampier: They turn you over to collections and potentially hit your credit. Your score will probably drop by more than 20 points and this will stay on your rep...
  • Phillip Dampier: If they admit you returned your equipment, you should be able to cancel this bill. If they don't help you by phone, file a BBB complaint online. If yo...
  • Phillip Dampier: You may live in a state where pro-rating is mandatory. Also, you transferred your account, which means it remained open, only the accountholder's name...
  • Dee McCarthy: Spectrum is trash sent us a bill weeks after we gave back boxes and had stopped service since beginning of the year...Our bill was zero then we got a ...
  • Gwen Brown: They are charging me $230 a month .No HBO, NO STARZ, NO SHOWTIME? ?...
  • Roux Oli: The system worked just fine. As a matter of fact, as a former Technician for TWC/Spectrum, we were installing new systems not very long ago. Asking pe...
  • Roux Oli: Judging by all of the comments I have seen, you are wrong. People are pissed, and rightfully so....
  • Darrell: The FCC has a place to file a written complaint. I did that and they forwarded it to Spectrum. Spectrum called today to acknowledge receipt of it an...

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