Charter Communications

The NY Public Service Commission today approved the merger of Charter Communications and Time Warner Cable, which will affect more than 5 million customers in the state.

(AP)

New York regulators today approved Charter Communications' acquisition of Time Warner Cable. As a condition of the approval, Charter will be required to upgrade broadband speeds and to expand the availability of high-speed internet service for low-income consumers.

The commission voted unanimously to approve the deal moments ago.

Among other requirements, Charter will be obligated to provide internet service to low-income customers at a price of no more than $14.99 per month, with download speeds of at least 30 megabits per second, said Peter McGowan, chief policy advisor. Time Warner Cable currently has a $14.99 internet option, which is available to all customers without restriction, but the download speed is only 2 Mbps, according to the company's website.

The service for low-income customers would be available to households that qualify for free or reduced-price school lunches, or for seniors who qualify for Supplemental Security Income benefits, McGowan said. All told, PSC officials estimate that 700,000 customers across the state should qualify for the service.

Charter also will be required to provide free broadband access at 50 community centers in underserved areas throughout the state.

Another condition of today's order will require Charter to upgrade its network to offer broadband speeds of at least 300 Mbps by 2019, McGowan said. Time Warner Cable offers that speed in New York City, but not Upstate.

If the merger goes forward, Charter will acquire roughly 5 million customers currently served by Time Warner Cable, more than 60 percent of the cable customers in New York state. Charter currently serves about 40,000 customers in the Chatham area.

Under the order approved today, Charter will have financial incentives to improve customer service, said McGowan, who outlined the order before the commissioners voted. The PSC set a goal of reducing customer complaints by 35 percent over five years, he said. Full details will be available after the PSC issues its written order.

Charter's $56 billion acquisition of Time Warner Cable still faces a review by the Federal Communications Commission and other regulators. Charter will have to accept the PSC's conditions in order to proceed with the merger in New York state.

PSC officials estimated that the merger will produce total customer savings of $435 million over five years. In addition, Charter will invest an estimated $655 million in its network, bringing the total benefit of the transaction to more than $1 billion, McGowan told the commissioners.

Contact Tim Knauss anytime | email | Twitter | 315-470-3023