News

FCC, CA regulators approve Charter, Time Warner Cable merger with conditions

The FCC and the California Public Utilities Commission (CA PUC) approved Charter’s $55 billion acquisition of Time Warner Cable-Bright House with conditions, clearing the way for a consolidation that the New York Timescalled “a powerhouse” in the cable and broadband industry. The proposed deal would give Charter a customer base of 24 million.


The FCC ordered four conditions on New Charter:


  1. It cannot impose data caps or charge usage-based pricing for its residential broadband service for seven years;

  2. The FCC modified New Charter’s settlement-free interconnection commitment for seven years to ensure companies can increase their traffic and expand their services;

  3. New Charter cannot prevent or penalize programmers from distributing content online for seven years;

  4. Within six months New Charter must offer a reduced price broadband service to low-income families with 30/4 Mbps speeded for not more than $14.99 per month; and

  5. It will be under FCC observation to abide the letter and spirit of the conditions.


New Charter also made a voluntary commitment to invest in residential broadband facilities, agreeing to provide at least 60 Mbps download speed to at least two million additional customer locations.


New York State regulatorsapproved the deal in January, also with conditions. The NY Public Service Commission (PSC) ruled that its approval of the deal is contingent on Charter agreeing to provide a minimum service speed of 60 Mbps throughout the state; to provide Internet, video, and phone services to all households within the current Time Warner Cable footprint; to provide 300 Mbps Internet speeds to all New Yorkers by 2019; and to invest $50 million in customer service and maintain employment levels for employees that interact with customers.

FCC Grants Approval of Charter-Time Warner Cable-Bright House Networks Transaction (FCC, May 6, 2016)

 

Charter Communications-Time Warner Cable Deal Clears Final Hurdle (New York Times, May 12, 2016)

 

FCC approves Charter, Time Warner Cable merger (FCC, May 10, 2016)

 

Charter Communications aims to become “powerhouse” (Speed Matters, May 28, 2015)

 

New York State approves Charter, Time Warner deal with conditions (Speed Matters, Jan. 13, 2016)