In a sign federal regulators are taking the behemoth merger of Charter Communications, Time Warner Cable, and Bright House Networks seriously, the FCC today announced it was temporarily stopping the clock on the merger review required to approve or reject it.

“The commission has a strong interest in ensuring a full and complete record upon which to base its decision in this proceeding,” the FCC wrote in a statement. “Pausing the clock will ensure that commenters have sufficient time to review and comment on this new information, and will provide commission staff with the necessary time to review both the applicants’ materials and any responses.”

The delay is expected to last at least 15 days. The FCC considers such mergers under an informal 180-day “shot clock” that was designed to make certain mergers under review would receive prompt consideration by regulators. But the FCC treats the clock as a suggestion, not a mandate, and has often delayed contentious mergers, sometimes to a degree where the parties involved recognize the direction the review is headed, and withdraw their application.

Charter insists that is not the case here.

“We have recently submitted supplemental information to underscore the benefits of these transactions and it is expected that the FCC would want to give the public time to comment,” Charter said in a statement. “We are working well with the FCC on its review of our deal and continue to look forward to a timely approval.”

Comcast said the same thing when its merger application for Time Warner Cable stalled in federal and state regulators’ offices. Its merger application was eventually voluntarily withdrawn.

While planning to quietly drop Time Warner Cable’s budget-minded, unrestricted $14.99 Everyday Low Price Internet package after it acquires the company, Charter Communications is celebrating a “new and improved” low-income Internet offer that will likely discriminate against current customers while protecting company profits.

Charter Communications announced this month it would start offering qualified low-income families and seniors 30/4Mbps broadband service for $14.99 a month within six months of closing its acquisition deal with Bright House Networks and Time Warner Cable. Charter claims its newest program will offer the highest broadband speed of any similar low-income discount Internet plan, and will include discounts for cable television and phone service as well.

“Recognizing the central role broadband plays in our daily lives and the economic challenges faced by many Americans today, we look forward to launching this offering that will provide more consumers a superior broadband service,” said Tom Rutledge, president and CEO of Charter Communications. “Our industry-leading low-cost broadband service is just one of the many benefits these transactions will bring to our customers. We look forward to providing this superior broadband service to underserved families and seniors throughout Charter’s footprint.”

Time Warner Cable offers $14.99 to anyone without paperwork. Charter isn’t.

But Charter’s discount Internet offer will replace Time Warner’s current $14.99 discount Internet program, available to any customer without pre-conditions or term contracts. Charter’s proposal to regulators states the company plans to replace multiple tiers of broadband service offered by Time Warner and Bright House with just two options — 60 and 100Mbps tiers that will eventually cost customers at least $60 a month — four times the cost of Time Warner’s budget-minded alternative.

Unlike Time Warner’s Everyday Low Price Internet, customers will have to qualify for the discounted program, which will discriminate against current customers, individuals and families without school age children, and senior citizens that do not receive additional assistance from the government.

Among the most onerous restrictions, Charter plans to protects itself from revenue cannibalization by prohibiting existing broadband customers from paying less by signing up for Charter’s new discounted plan. Customers will have to voluntarily drop Bright House/Charter/Time Warner Cable Internet service for at least 60 days before they can apply for Charter’s new low-cost option.

Other requirements limit participation only to families with students participating in the National School Lunch Program or seniors age 65 or older who also receive Supplemental Security Income program benefits. In all cases, participating customers must pay off all current and any past charges still owed to Bright House, Charter, and/or Time Warner Cable before they can enroll.

Charter included in a press release announcing the program a list of organizations it claims prove “widespread support for Charter’s low-cost broadband service.” Charter did not mention most of the groups quoted have a long history supporting the telecom industry, mostly after cashing generous contribution checks from the cable and phone companies involved:

National Urban League: A notorious friend of big cable and phone companies, the Urban League is a regular supporter of telecom mergers and opposes Net Neutrality. The Urban League has compiled a poor record among civil rights groups that routinely favors corporate contributors over the need of their constituencies. Its president, Marc Morial, has attracted the attention of the Center for Public Integrity, which published an exposé about the group and its leadership in 2014.

Sharpton

National Action Network, an organization founded and run by Reverend Al Sharpton: Sharpton’s group no longer discloses its corporate donor list, but large telecom companies often have the support of NAN on everything from mergers and acquisitions to blocking consumer protection regulation. An entertainment company executive in California called Sharpton corporate America’s “least expensive negro” for his willingness to advocate for big cable and phone companies in return for relatively small donations to his organization. National Action Network Inc. is on Charity Navigator’s Watchlist.

League of United Latin American Citizens: Time Warner Cable is an existing Corporate Alliance member of LULAC, a group that routinely supports large telecom company mergers and acquisitions and often advocates on their behalf while accepting corporate contributions.

Connected Nation: A group Public Knowledge says is sponsored by telephone and cable companies and represents their interests.

Digital Divide Partners LLC: Two guys from the Bronx running a website with spelling and grammar issues. The site doesn’t seem to have been updated since May 2015 and only then to post a generic thank you letter from the Manhattan Borough President Gale Brewer.

NOBEL Women: In addition to the company’s sponsorship of group functions, Bright House’s corporate vice president for government and industry affairs – Marva Johnson, was a featured participant at the group’s 2014 annual conference.

Rainbow PUSH Coalition: Jesse Jackson’s group has come under fire for favoring the corporate agendas of its donor base. Rainbow/PUSH has a long record supporting corporate telecom mergers, including SBC and Ameritech back in 1999, AT&T and Tele-Communications, Inc. in 1999, AT&T and BellSouth back in 2006, Comcast and NBCUniversal in 2011, among many, many others. The coalition, supposedly representing the interests of average Americans, has also filed comments with regulators opposing a-la-carte cable TV pricing (pay only for the channels you want) and railing against Net Neutrality.

Apple TV (version 4)

The cable industry is on the cusp of saving billions of dollars annually buying and maintaining set-top boxes and cable modems if they can convince customers to buy their own instead.

Cable companies collectively spend as much as $10 billion a year on customer premise equipment (CPE), ranging from simple Digital Transport Adapters for older analog-only TV sets, to the most advanced cloud-based set-top boxes and DVRs.

Cable industry analyst Craig Moffett believes the cable industry will save a fortune and lose one as consumers buy their own set-top equipment like Apple TV or Roku boxes and buy their own modems to avoid monthly rental charges. That means cable companies will likely forfeit a considerable percentage of their leasing/rental revenue.

“The idea that customers will eventually consume video through their own Apple TV or Roku boxes, or simply connect their cable to their smart TVs, Xboxes and Sony PlayStations, is neither new nor far-fetched,” wrote Moffett. “There are good reasons to believe that CPE spending may come down significantly in future (product) generations.”

Most cable equipment is leased to customers and often installed by a cable operator that covers the costs of sending a truck to the customer’s home. After installation, the average American cable subscriber pays $89.16 a year renting a single cable box, and for those with multiple boxes and a DVR, those costs rise to $231.82 a year. A cable modem can be purchased for $50-90 on average, and usually pays for itself in less than one year of rental charges charged by many cable operators.

Comcast X1

Even with more capable consumer-targeted set tops like the latest Apple TV ($149-199) and Roku devices now approaching $100, it will not take long for consumers to recoup their money avoiding rental fees.

Cable operators like Time Warner Cable now carry the majority of their cable channels on apps accessible through devices like the Roku. Customers will not get the flashiest on-screen experience, but they do get a welcome alphabetical channel lineup and a reasonably good picture. Future generations of the boxes are expected to enhance usability and picture quality.

Cable operators like Charter stand to gain the most. If their merger with Time Warner Cable and Bright House Networks is approved, all three companies are expected to see reductions in equipment expenses estimated at $2.97 billion in 2015 to as little as $917 million by 2019, according to Moffett. Charter is already expecting to see its capital spending fall more than a billion dollars a year, from $6.97 billion to $5.83 billion by 2019, but consumers should not expect to see the savings passed on to them.

Cable operators can also expect considerable savings after fully deploying DOCSIS 3.1 technology that powers their broadband services. The next generation cable broadband platform offers increased efficiency and flexibility that will allow operators to sell faster speeds.

Comcast may stand apart from others believing deluxe set-top boxes like its X1 are urgently needed to keep cable TV customers satisfied. One of Comcast’s largest planned expenses is deploying millions more of these advanced platforms to customer homes in 2016.

Any final approval of Charter Communication’s planned acquisition of Time Warner Cable and Bright House Networks will likely not come before next summer, as regulators in California decide to take a closer look at the blockbuster merger deal that would make Charter the second largest cable company in the country.

An administrative law judge is contemplating the merger’s impact on California, and a decision is unlikely to come before May 2016, with a final vote of the California Public Utilities Commission tentatively scheduled for June 16th. The judge agreed with consumer groups that the deal warrants evidentiary hearings — a sign the deal deserves additional scrutiny.

New York State’s Public Service Commission is also still reviewing the transaction, although it is expected to render a decision within the next few months. On the federal level, the FCC has also not held back, recently requesting answers to a number of questions regarding John Malone’s involvement in the future of “New Charter.” Malone remains Charter’s biggest single shareholder and could wield considerable control over New Charter’s operations. Considering Malone’s long history of antagonizing customers and engaging in what lawmakers called anti-competitive behavior during his realm at Tele-Communications, Inc. (TCI), regulators may not want to see history repeat itself.

What was originally anticipated by industry observers to be an ‘easy approval,’ is now looking more like Comcast’s failed bid for Time Warner Cable, as regulators seem to be in no hurry to give Charter’s deal a green light.

If regulators do ultimately approve the deal, it is likely to come with a number of conditions designed to at least temporarily protect consumers and competitors. Stop the Cap! argued in filings with state and federal regulators Charter’s proposal was uncompelling and consumers were unlikely to benefit from the deal. Time Warner Cable’s ongoing Maxx upgrade program delivers faster Internet speeds and better service than Charter’s more modest proposal offering upgrades up to 100Mbps. Time Warner Cable Maxx offers customers up to 300Mbps broadband for the price the company now charges for 50Mbps.

Time Warner Cable customers who purchased their own cable modems to avoid the company’s $8 monthly rental fee will effectively be forced to indirectly pay those fees once again if Charter Communications wins approval to buy the cable operator.

A major modem manufacturer, Zoom Telephonics, has asked the Federal Communications Commission to reject Charter’s buyout of Time Warner Cable and Bright House Networks because it will hurt cost-conscious consumers that invested in their own equipment to avoid costly modem rental fees.

Zoom’s argument is that Charter builds modem fees into the price of its broadband service and offers no discounts to consumers that own their own equipment. At least 14% of Time Warner Cable customers have purchased their own modems and are not charged the $8 rental fee. Charter has promised not to charge separate modem fees for three years after its acquisition deal is approved, but that also means the company is building the cost of that equipment into the price of broadband service.

Zoom has an interest in the outcome because Charter has yet to approve any Zoom cable modem model for use on its network. Time Warner Cable has certified at least one Zoom model in the past. Assuming the buyout is approved, consumers would have a disincentive to buy Zoom cable modems (or those manufactured by anyone else) because the equipment will be provided with the service.

Zoom has tangled with Charter before, most recently in the summer of 2014 when it criticized Charter’s policy forbidding new customers from using their own modems with Charter’s service. From June 26, 2012 until Aug. 22, 2014, Charter’s website stated, “For new Internet Customers and customers switching to our New Package Pricing, we will no longer allow customer owned modems on our network.”

Zoom claims Charter modified that policy three days before a key FCC filing deadline that could have eventually brought regulator attention on the cable operator. But Zoom remains unhappy with how Charter deals with the issue of customer-owned equipment.

“Charter has still not adopted certification standards that are open to Zoom and other cable modem producers, nor has Charter yet made a commitment for timely certifications under this program,” Zoom claimed in the summer of 2014. “Of the 17 cable modems Charter shows as qualified for customer attachment to its network, not one is stocked by leading cable modem retailers Walmart, Staples, and Office Depot and not one has 802.11ac wireless capability. Charter still does not separately list the cost of its leased modems on customer bills, and Charter does not offer a corresponding savings to all customers who buy a qualified cable modem and attach it to the Charter network.”

Zoom wants Charter to be required to offer consumers that own their own equipment a tangible monthly discount for broadband service as a condition of any merger approval.

“The Communications Act says that cable companies should sell cable modem leases and Internet service separately,” Andrew Jay Schwartzman, a professor at Georgetown University Law Center who is representing Zoom, told the Los Angeles Times. “By combining the prices, Charter’s customers are deprived of the ability to purchase advanced cable modems and save the cost of monthly rental fees.”

Charter argues the Act only covers set-top boxes used for cable television service, not modem fees. Charter also claims its introductory prices are lower than what most cable companies charge, modem fee or not.

“Customers will benefit from Charter’s pro-customer and pro-broadband model with transparent billing policies,” Tamara Smith, a Charter spokeswoman, told the newspaper. “It features straightforward, nationally uniform pricing with no data caps, no usage-based pricing, no modem fees, no early termination fees and does not pass on federal or state Universal Service Fund fees to customers.”

But Charter is only guaranteeing those customer-friendly policies for three years, after which it can raise prices and add fees at will.