Charter Communications (NASDAQ: CHTR) has received approval from New York state regulators for its proposed $56.7 billion purchase of Time Warner Cable.
The MSO agreed to provide access to 300 Mbps-speed broadband to all New York residents by 2019. Charter also agreed to maintain the presence of an inexpensive broadband offering for state residents.
The New York Public Service Commission (PSC) voted 3-0 to approve the merger Friday. The approval was necessary for Stamford, Conn.-based Charter to transfer ownership of New York-based TWC. The deal still needs approval from the FCC, which paused its six-month regulatory process last week in order to ponder new documents filed by both Charter and TWC.
"This is a significant step forward, not only for Charter but also for our future customers, and we are very happy to have obtained this approval from the New York State PSC," said Tom Rutledge, president and CEO of Charter Communications. "We thank Governor Cuomo and his team for their leadership and we look forward to bringing many benefits including a superior high speed low cost broadband service to families and seniors in New York."
TWC currently offers 300 Mbps service in New York City for $64.99 a month. The company agreed to maintain its $14.99-a-month package that offers speeds ranging from 1 Mbps to 3 Mbps. New subscribers will have access to the low-cost service for another two years. Existing subscribers will get to keep their service for another three years.
The FCC is also reviewing a separate $10.4 billion proposal from Charter to buy privately held Bright House Networks in Florida.
- read this Charter Communications press release
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