Hawaii PUC OKs Charter/TWC With Conditions
Charter Communications won conditional OK in Hawaii for its acquisition of Time Warner Cable subsidiaries, leaving California at the state level needing to approve Charter buys of TWC and Bright House Networks. The scope of the Hawaii PUC review didn’t include BHN and was limited to an indirect transfer of control of TWC’s Information Services and Business subsidiaries to Charter. After the Hawaii Public Utilities Commission order Thursday, the overall deal requires approval by the FCC and the California PUC.
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Charter said it's pleased by the Hawaii decision, and was happy to win approval from the Hawaii Department of Commerce and Consumer Affairs in December. “We continue to work productively with federal regulators and the CA PUC and look forward to obtaining their approvals as well,” said the cable operator.
In one condition, the Hawaii PUC restricted the new company from increasing intrastate telecom rates for existing customers or moving customers to plans with diminished service. Within seven days of the deal's closing, Charter must notify customers that they will follow that policy. The state commission required Charter to file a written report within 30 days of closing that details post-transaction plans for intrastate telecom operations in Hawaii. This includes infrastructure upgrades and investment, enhancing voice services, providing service to more business customers, and providing benefits to TWC’s customers, the PUC said.
Charter and TWC “met their burden of proving the indirect transfer of control won't adversely affect the TWC Subsidiaries' fitness, willingness, and ability to provide intrastate telecommunications services in the State, or the rates, terms, and conditions of such telecommunications services,” the Hawaii PUC said in the order. "As a result of the merger, New Charter will have the scope and financial resources to provide reliable and improved service to Hawaii consumers, serving more subscribers, generating more revenue, and earning more EBITDA ... nationwide.” The PUC said cost savings from the deal will strengthen Charter’s financial position relative to that of TWC.
The PUC said the deal is consistent with the public interest and noted “the lack of affirmative opposition to or concerns” from any intrastate telecom carriers in Hawaii or the public. But the Hawaii Consumer Advocate had asked the state commission to deny the request, or at least issue conditions requiring Charter to notify customers about any changes to rates, terms or conditions of service, and to stop Charter from moving any existing TWC customers to inferior services. The Hawaii Consumer Advocate didn’t comment on the order.
Charter's purchases won approvals from the New Jersey Board of Public Utilities (see 1602250051) in February and the New York Public Service Commission (see 1601080048) in January. The FCC has lately been receiving a flurry of comments as its informal deadline to decide passed Thursday (see 1603240017). A CPUC order is expected by May 12, with a proposed decision possible by April 12 (see 1602120055).