Charter Communications has refused to cooperate in a review to determine if the company is meeting its merger obligations to customers in California.

The Public Advocates Office of the California Public Utilities Commission reports that Spectrum was required to offer at least 300 Mbps internet service to all households in its California service area by December 31, 2019. It was a key condition required of the cable company to win approval of its 2016 merger with Time Warner Cable. But after getting its merger, Charter officials have stopped cooperating with the Public Advocates Office, which is required to submit annual progress reports on Charter’s compliance.

“Charter’s reports thus far have consisted only of bald assertions, without any supporting household data, that it is providing download speeds of up to 300 Mbps to a certain percentage of households and, as stated in its 2017 report, 400 Mbps to a certain percentage of households,” the Public Advocates Office wrote in a Notice of Ex Parte Communication.

“Charter has refused to provide all data requested by the Public Advocates Office, making it impossible for the Public Advocates Office and the Commission to verify whether Charter is, in fact, in compliance with [its merger obligations},” the Office stated. “[I]f Charter fails to comply with merger conditions, the Commission may pursue appropriate enforcement remedies, including the imposition of fines.”

The Public Advocates Office won the granting of a motion to compel Charter Communications to provide the information, signed by Administrative Law Judge Karl J. Bemesderfer.

Officials in the Justice Department are asking T-Mobile and Sprint to spin off a portion of their networks to lay the foundation to create a new national wireless carrier, with its own network, as a deal condition for approving their $26.5 billion merger.

Bloomberg News reports the launch of a new “fourth largest” U.S. wireless company would help win Justice Department approval for the merger deal, according to unnamed sources. Such a network could be created with the spinoff of Sprint’s Boost Mobile, a prepaid MVNO dependent on Sprint’s wireless network. Since a considerable percentage of Sprint’s existing network was expected to be scrapped after the merger won approval, Sprint could theoretically give up part of its network that would have been deemed redundant anyway to appease regulators. But Wall Street is unlikely to approve of the prospect of creating a new competitor, especially in a transaction designed to reduce the number of wireless competitors in the United States.

Boost Mobile, according to Reuters, could be worth $3 billion in a sale — potentially more if an already-built wireless network is included in the deal.

Critics wonder why the Justice Department would approve a deal merging T-Mobile and Sprint at all if officials were worried about reducing the number of wireless options for consumers. Industry observers suspect T-Mobile and Sprint would be unlikely to support such a network spinoff plan, and the resulting emergence of a new carrier likely to be even smaller than Sprint would leave it in a difficult position in a marketplace that would be dominated by three much larger national carriers planning to spend billions to develop 5G networks.

A source told Bloomberg News Justice Department antitrust chief Makan Delrahim “still wants four carriers” and remains unmoved by T-Mobile and Sprint’s arguments that combining operations would lead to more competition and lower prices for consumers. 

Many state attorneys general remain opposed to the merger, fearing that it will lead to less competition and higher prices.  They are waiting for the Justice Department to make its decision before contemplating lawsuits to block the merger if the deal wins approval in Washington.

Altice USA could be your next cell phone provider, if you subscribe to Cablevision’s broadband service in the metro New York City area.

The Wall Street Journal reports Altice is preparing to launch an unlimited calling/texting/data plan that will cost between $20-30 per month, powered by Cablevision’s in-home Wi-Fi, its network of public Wi-Fi hotspots, and Sprint’s 4G LTE network.

The service, likely to be called Altice Mobile, is the latest entry from cable operators pitching low cost mobile service as an incentive to keep customers from switching providers. Altice will charge dramatically less for its unlimited plan than Xfinity Mobile and Spectrum Mobile ($45) — both reselling Verizon Wireless service — (with speeds reduced to 1 Mbps download and 512 kbps upload after 20 GB of data usage in a month.)

Customers using AT&T and Verizon pay even more. Unlimited monthly plans for a single phone start at $80 at Verizon and $70 at AT&T, depending on bundling certain other AT&T-owned services. For less than half the price, Altice Mobile would deliver all the same services larger providers offer, although Altice intends to offload as much usage as possible to its network of Wi-Fi hotspots, to keep costs low. Before Altice acquired the cable company, Cablevision built a major Wi-Fi presence in the New York City metro areas where it provides cable service. Altice announced it intends to strengthen that network to support its mobile initiative, including the possibility of deploying its own small cell network.

Where Altice cannot supply its own wireless connection, it will rely on Sprint to take over, paying the cell phone company for its customers’ traffic. In return, Sprint will be able to bolster its network in Altice’s service area, perhaps even using Altice’s fiber-to-the-home network, now under construction. That could help Sprint launch 5G service relatively soon in the region, regardless of whether its pending merger with T-Mobile USA is approved. To protect the venture, Altice has secured an agreement with both T-Mobile and Sprint not to terminate its contractual agreement with Sprint should a merger be approved. But the service will still be dependent on network owners like Sprint willing to sell connectivity. Should Altice Mobile take a significant share of the market, network owners may be reluctant to renew such contracts, or price them much higher at renewal time, raising prices.

The cable industry’s incentive for getting into the wireless business, even if it proves unprofitable, is plain to see. All entrants require their mobile customers to maintain a broadband account in good standing to qualify for mobile service. Comcast, Charter, and Altice are aware their video packages are increasingly untenable in a cord-cutter’s marketplace, but maintaining internet service remains essential. In most areas where the cable operators provide service, Verizon or AT&T also sells both broadband and wireless service. Customers may be reluctant to bounce between providers looking for a better deal if they also have to switch mobile providers at the same time.

Staffers working for the antitrust division of the Department of Justice have recommended the agency sue to block the merger of T-Mobile and Sprint, arguing it will reduce competition and raise prices for consumers.

Two sources familiar with the matter told CNBC staffers have been skeptical of the merger and recommended blocking it on antitrust grounds. But the final decision will rest with President Donald Trump’s political appointees, notably Makan Delrahim, who heads the antitrust division. Delrahim can agree, modify, or reject the staffers’ recommendations.

The disclosure hammered Sprint shares earlier this morning in pre-market trading. Wall Street analysts are likely experiencing significant headaches trying to predict where the deal will ultimately end up. Earlier this week, the FCC’s Republican majority signaled they were prepared to approve the merger, based on concessions including the spinoff of prepaid Boost Mobile, which resells Sprint service.

A final decision from the Justice Department is likely to be announced in June.

Bloomberg News is reporting this afternoon that the Justice Department is leaning against the merger of T-Mobile and Sprint, because the proposed concessions offered by the two companies this morning do not resolve antitrust concerns, according to a person familiar with the review.

News of the reported opposition leaked out on the same day FCC Chairman Ajit Pai offered his support of the T-Mobile/Sprint merger, sparking media speculation Pai would not have issued his unqualified support unless the Justice Department was likely to follow suit.

If Bloomberg’s source is correct, the opposition on antitrust and competition grounds would be a major setback for the merger. Bloomberg reports that the fate of the deal now likely rests with Makan Delrahim, the head of the antitrust division of the Justice Department. Delrahim must weigh whether the merger would hurt competition and raise prices. If it would, he would likely seek to block the $26.5 billion deal.

The news has stemmed the telecom rally on Wall Street. Sprint was still trading up 14% at $7.08 at 2:44 p.m. in New York, but gave up half of its earlier gains. T-Mobile also has slowed and was up 2.9% to $77.52.