Dish Network in the News

Broadcasters Oppose EchoStar's Purchase of Hughes

WASHINGTON Nov. 29, 2001 - The primary trade group for the television broadcasters said Thursday it would oppose satellite TV provider EchoStar Communications Corp.'s proposed purchase of Hughes Electronic Corp.'s DirecTV.

The $26.1 billion combination would create the biggest satellite television provider in the United States with 16.7 million subscribers, but has already raised concerns among federal communications regulators.

"EchoStar has a history of challenging Congressional mandates, ignoring FCC rules, and bad faith business dealings -- all to the detriment of consumers,'' Edward Fritts, head of the National Association of Broadcasters (NAB), said in a statement.

In the past, broadcasters and satellite services have dueled over carrying local broadcast television stations in their local markets.

"The NAB has consistently requested that DBS companies expand our local to local delivery to more markets,'' said EchoStar spokeswoman Judianne Atencio.

"It's disappointing that the NAB would now switch gears and oppose a merger that would expand the delivery of local network channels via satellite to nearly 85 percent of U.S. households,'' she said.

Two committees in the U.S. House of Representatives are slated to hold hearings next week that will touch on the proposed combination, the Judiciary Committee and the Energy and Commerce Committee.

Charles Ergen, the company's chief executive, will testify at the hearings. He has argued that antitrust enforcers have examined satellite service in the context of the broader pay television market and that should work in the favor of the proposed combination.

Yet, officials at the Federal Communications Commission have raised questions about reduced competition in rural markets and one company holding the prime direct broadcast satellite slots.

"The burden is on EchoStar to explain how America will benefit by combining the only two satellite companies that compete with cable,'' Fritts said.