Charter has agreed to pay $13 million to New York State after failing to complete broadband construction that was required as part of its purchase of Time Warner Cable. Charter can get $12 million of that back if it completes the buildout under a revised schedule.
Charter was required to extend its network to 36,250 homes and businesses in the state within one year of the TWC merger being approved, but it only completed the buildout to 15,164 of them by the May 18 deadline, state officials said in an announcement Tuesday. The NY Public Service Commission is taking public comments on the settlement before giving it final approval.
The $13 million payment includes $1 million in grants for computer equipment and Internet access for low-income residents. The other $12 million is “a security to meet its network expansion commitment going forward,” which Charter can recover upon completing the merger conditions.