The New York State Public Service Commission has approved an enforcement settlement with Charter Communications, Inc., (NASDAQ: CHTR) parent company of broadband provider Spectrum, requiring the communications company to provide discounted broadband service to low-income customers.
Spectrum, which operates in 58 out of the 62 counties in New York State, will be required to re-establish its internet program with download speeds of 50 Mbps at $15/month for four years to New Yorkers in the National Free School Lunch Program or who are receiving Supplemental Security Income benefits.
The 2016 merger between Charter, Time Warner Cable, Inc., and Bright House Networks LLC was approved by the FCC with public interest conditions requiring rates of $15/month at 30 Mbps for low-income customers. Charter allegedly increased its low-income broadband price to $24.99/month at a higher speed of 50 Mbps without Commission approval, in violation of the 2016 merger order. The company disputed the allegations.
By J. Sharpe Smith, Inside Towers Technology Editor
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