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U.S. regulator gives itself 15 days to examine documents from cablecos, covering pricing and investment plans, impact on regional sports networks.
The Federal Communications Commission (FCC) has put its investigation of Charter Communications’ planned merger with Time Warner Cable on hold, giving itself an additional two weeks to examine new documentation from the companies detailing the impact of the deal on various aspects of their businesses.
In a letter shared on its Website on Monday, the U.S. regulator said it is pausing its 180-day informal time clock on the investigation for 15 days; it will restart on 20 January.
During December, Charter, Time Warner Cable and Advance/Newhouse Partnership–the parent company of smaller cableco Bright House Networks that will also be subsumed in the proposed merger–filed "numerous supplemental materials" to clarify details of the transaction, the FCC said.
These included a white paper looking at the impact of the merger on the distribution of TWC SportsNet and SportsNet LA, two regional sports networks owned by Time Warner Cable; information from Charter on IP interconnection and its residential pricing and packaging methodology; and additional details from TWC and Charter on their residential and commerical build-out plans, designed to help the regulator assess their commitment to build 1 million residential line extensions and invest $2.5 billion in commercial networks.
"The Commission has a strong interest in ensuring a full and complete record upon which to base its decision in this proceeding," the FCC said in its letter, which was addressed to the companies involved in the deal.
"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," it explained.
Charter Communications agreed to buy Time Warner Cable for $56.7 billion in May last year after a similar deal between rival Comcast and TWC had fallen through.
It had previously agreed to pay $10.4 billion for Bright House Networks, and was able to renegotiate that deal to bring the firm into a three-way merger.
The tie-up has been subject to significant opposition from rival telco and TV players, as well as consumer advocates. Many believe it poses a significant threat to competition in the video and broadband markets in the U.S.
Nonetheless, the cablecos aim to close the deal this quarter. According to Bloomberg, once the FCC restarts its time clock, the investigation will have another 65 days to run.
