New York's Public Service Commission has thrown a very large wrench into the state's cable tv markets. It has revoked Charter-Spectrum's license to operate in New York State, and given it 60 days to find someone to take over its cable tv, phone and internet operations.
The PSC says Spectrum never lived up to the terms of the Time-Warner merger deal that created the company two years ago. It voted unanimously today to reverse its approval of the merger, preventing the company from operating in New York and likely triggering a lengthy court fight. In a special meeting the Commission also voted to file a lawsuit against Spectrum demanding financial penalties.
The PSC's chairman said Spectrum and Charter are not serving New Yorkers.
A Charter spokesman accused the commission of acting for political reasons, as Governor Cuomo is up for re-election this year.
The dispute is over how fact Spectrum has extended its high-speed internet service to new customers around the state. The PSC says Spectrum failed to meet the timetable it agreed to. Spectrum says it's connected more than 86,000 new homes to its network...more than it promised.