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Schumer secures $39 million for high-speed internet

Spectrum settles with Public Service Commision

Patricio Robayo - Staff Writer
Posted 7/19/19

SULLIVAN — High-speed broadband might finally become a reality in Sullivan County as Senator Chuck Schumer recently announced $39 million in federal funding for New York State

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Schumer secures $39 million for high-speed internet

Spectrum settles with Public Service Commision

Posted

SULLIVAN — High-speed broadband might finally become a reality in Sullivan County as Senator Chuck Schumer recently announced $39 million in federal funding for New York State

According to Schumer, the money comes from $170 million of allocated funds that he previously fought for in 2017.

At that time, the Federal Communications Commission (FCC) wanted to shuttle the funds to other states.

Money will be drawn from the FCC's Connect America Fund (CAF).

Assemblywoman Aileen Gunther, who has been advocating for high-speed broadband access for Sullivan County residents, said, “I'm happy to see more funding coming to Sullivan County for broadband, but we need more than that. We need to change the entire way broadband is delivered to rural communities. We need competition for these huge corporations.”

In Sullivan County, 24 locations were chosen for additional funding.

At press time on Thursday, the Office of Senator Schumer told the Democrat, they could not say specifically which areas in the county would be helped.

Gunther feels that companies like Charter Communications—also known as Spectrum— “skirt” their responsibilities while still making significant profits.

“Broadband is no longer a luxury for people; it's a necessity,” said Gunther.

According to Schumer, the funds will be used to help bring broadband internet access to over 15,000 rural properties, homes, and businesses.

“To build the vibrant upstate New York economy of tomorrow that creates and sustains the jobs of the future, we must invest in high-speed internet access today,” said Schumer.

The released federal funds would enhance the $500 million New NY Broadband Program that was announced in 2015.

“With this multimillion-dollar investment, rural counties upstate will finally have the resources needed to close the far-too-large digital gap,” added Schumer.

Charter Settlement

The news of additional funding comes on the heels of Charter Communications reaching a settlement to resolve disputes with the Public Service Commission (PSC).

Earlier in the year, PSC said that Charter could no longer operate in the state because they did not meet their broadband goals.

PSC also stated that Charter misrepresented their actual expansion numbers and included locations not in upstate New York.

Charter will now have to pay an additional $12 million to expand broadband service according to the agreement.

“Broadband is crucial to driving economic growth and opportunity, especially in communities that are currently unserved or underserved, and Charter needs to deliver broadband access for New Yorkers,” said PSC Commission Chair John B. Rhodes.

According to the terms of the agreement, Charter will expand its network to provide high-speed broadband service to 145,000 residents and businesses for upstate New York.

Furthermore, no New York City addresses—which Charter had previously planned to include in an earlier buildout plan—will be included.

“Approval of this agreement enables the parties to move forward, without being hampered by the time and cost of litigation, to accomplish our important goals to expand access to high-speed broadband,” said Rhodes.

According to the settlement, the expansion will be completed by September 30, 2021, which follows the already schedule requirements from the agreement.

Charter is required to have frequent “interim enforceable milestone requirements,” with corresponding reporting and accountability, according to the PSC.

Of the $12 million that Charter will now have to pay, $6 million will be administered by the New York State Broadband Program Office and $6 million will be paid into an escrow fund for work that will be completed by Charter under the state's direction.

According to the PSC, if Charter fails to meet the established milestones, the settlement includes consequences.

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