New York State is taking legal action against Spectrum Media Company for potential violations of its franchise agreement.
According to Governor Andrew Cuomo's Press Secretary Dani Lever, Spectrum agreed to fulfill certain obligations to secure New York State's approval of the company's acquisition of Time Warner Cable and its subsequent ability to operate in New York State. As part of the agreement, Spectrum was supposed to provide broadband internet access to underserved parts of the state and preserve a qualified workforce. The state does not believe Spectrum has fulfilled its part of the bargain.
In the States findings they determined that Spectrum said they provided broadband internet access to 12, 467 NYC areas. According to the state, this should not count towards the 140,000 areas Spectrum was told to service to the fact that the areas already had internet. Essentially the State is saying Spectrum is not building broadband internet in areas that need it, instead, areas that are easier to help.
"The Governor believes it is essential that corporations doing business with the State uphold their commitments, and we will not tolerate abusive corporate practices or a failure to deliver service to the people," Lever said in a statement.
"Large and powerful companies will be held to the same standard as all other businesses in New York. The Spectrum franchise is not a matter of right, but is a license with legal obligations and if those are not fulfilled, that license should be revoked."
In response to the accusations Spectrum denied they have underserved New York saying, "Charter is bringing more broadband to more people across New York State. We exceeded our last buildout commitment by thousands of homes and businesses. We've raised our speeds to deliver faster broadband statewide. We are in full compliance with our merger order and the New York City franchise, and we will fight these baseless actions vigorously."