To obtain approval, Charter agreed to upgrade its broadband speed to 100 Mbps statewide by the end of 2018 and to 300 Mbps by the end of 2019, and build out its network to pass an additional 145,000 un-served or under-served homes and businesses within four years of closing of the transaction. New York's Public Service Commission found that the company completed the first speed upgrade ahead of schedule, as of May 2017, but had only extended its network to pass 15,164 of the 36,250 premises it was required to connect in the first year.
In lieu of a potential penalty for missing its build-out target, Charter agreed to pay USD 1 million in grants for equipment to provide computer and internet access to low-income users, and to set aside USD 12 million as a security to meet its network expansion commitment going forward. Under the agreement, Charter commits to completing its build-out requirement of 145,000 new passings in 21,646 increments over six periods through May 2020.
To ensure the company keeps its promise, Charter will forfeit its right to earn back up to USD 1 million of the deposit each time it misses a six-month build-out target. Charter has also agreed to develop a communications plan within 60 days of the settlement’s execution to inform New Yorkers whether they are part of the build-out plan.
