New York’s decision to try to kick out Charter Communications from New York was called an unprecedented step by analysts and experts who viewed the move as a way to force Charter to take more aggressive steps to expand its broadband network.
On Friday, the state’s Public Service Commission voted in a hastily called meeting to revoke Charter’s license in New York if it doesn’t within 60 days hand over its Spectrum operations to another provider.
The state’s decision shocked the industry and customers because the company is the largest provider in New York.
It has been in a pitched battle with the state over its pledge to expand its high-speed internet as part of a franchise agreement in 2016 when it merged with Time Warner Cable.
“It’s pretty dramatic, particularly something statewide,” said Neil Begley, Moody’s Investor Services’ senior analyst for media and entertainment, including cable companies.
Begley and other experts contended that New York’s hard line is a negotiating tactic to get Charter to invest more in its network.