The New York State Public Service Commission (PSC) says that Spectrum repeatedly failed to meet deadlines, skirted its obligation to serve rural communities, had unsafe practices in the field, failed to fully commit to it obligations under the merger agreement and has purposefully hidden performance metrics from.
The problems that led to today's move allegedly began in 2016, when the state approved Charter's merger with Time Warner Cable.
The 3-0 vote reflected the commission's displeasure with Charter - which provides cable TV, internet and phone service in NY state under the Spectrum name - for falling short of required broadband internet expansion in the state, especially in rural areas. The Commission also requires $3 million in penalties from the company.
Charter has 30 days to contest the order, which the company said it will do.
The biggest cable provider in New York State may not be able to continue in its current form.
In a statement Friday, Charter - which offers service in NY state as Spectrum - implied that the commission's order may have been politically motivated. Because of these misdeeds, the New York State Public Service Commission warned Charter that it could face franchise revocation in the state and additional penalties. But the fact is that Spectrum has extended the reach of our advanced broadband network to more than 86,000 NY homes and businesses since our merger agreement with the (commission).
But this is the culmination of months of complaints from the state, including a statement from the commission last week that accused the company of " gaslighting": Charter has continually failed to meet its commitments to the state, including its obligation to timely extend its high-speed broadband network to 145,000 unserved and underserved homes and businesses.
"In the weeks leading up to an election, rhetoric often becomes politically charged".
PSC Chairman John Rhodes said Charter is "simply not serving New Yorkers". This means that the company can no longer operate in the state and in essence forfeits future revenue from roughly 2 million subscribers. What is just as bad is that thousands of New Yorkers who are waiting for the broadband access Spectrum keeps advertising it is providing are still stuck with 20th Century technology.
A spokesman for the NYPSC didn't respond to requests for comment.