Charter may need to build “gigabit” networks for New York to approve deal

New York state regulators are suggesting Charter Communications should build “gigabit” Internet networks in the state’s largest markets as part of the company’s $55 billion proposed acquisition of Time Warner Cable.

The suggestion was included in a Sept. 16 report by staff at the state Public Service Commission, which is reviewing the merger as part of its regulation of the utility markets in New York. Charter, which is already planning to sell Internet service that is faster and cheaper than Time Warner Cable’s existing plans, threw cold water on the idea of being forced to build out gigabit networks across the state. In a filing made with the commission, Charter’s lawyers argued that federal law prohibited the government from dictating which technologies or Internet speeds a cable company offers the public.

“There is no reason for the commission to take the unprecedented step of conditioning its approval of this transaction on the provision of certain minimum broadband speeds,” Charter wrote. Charter spokesman Justin Venich says the company’s plans for the state already include bringing Internet speeds of 100 Mbps or higher to upstate customers within two and a half years as it converts to an all-digital network, a move in line with the Cuomo administration’s goal to have universal 100 Mbps Internet service in place by the end of 2018.