It is now emerging that Charter Communications’ proposed merger deal with Time Warner Cable (TWC) has received approval from New York state regulators but with strict conditions to be met.
The main condition is that Charter will provide 300 Mbps speeds to all customers by 2019 and continuation of a cheap entry-level Internet service. According to reports published by Times Union of Albany, a 3-0 vote by the Public Service Commission (PSC) was all that made the merger deal possible. The move means that Charter can proceed to finalize its $55 billion acquisition deal of Time Warner Cable.
Customers in New York will now get to enjoy much faster internet speeds coupled with increased availability and access of high-speed Internet services. The draft order that the commissioners gave on January 8 says that Charter must ensure Internet, TV as well as phone services reach 145, 000 homes that have not yet been reached by TWC. Customers will not be charged for any line extension as per the order.
It is expected that New York will benefit from investments totaling to 1 billion US dollars arising from the Charter TWC merger deal as Charter will capitalize on 2.6 million TWC customers already in the state. Charter Communications through CEO Tom Rutledge has said it will adhere to all conditions met out by the commission.
“This is a significant step forward, not only for Charter but also for our future customers, and we are very happy to have obtained this approval from the New York State PSC. We thank Gov. Cuomo and his team for their leadership and we look forward to bringing many benefits including a superior high-speed, low-cost broadband service to families and seniors in New York.”
The PSC meeting attended by three out of four commissioners was unanimous in its decision which was the only agenda on table for the day.