10-30-01, 06:29 AM
Reaction to EchoStar's move to merge with Hughes and DirecTV was swift, and included comments from Pegasus and a number of satellite retailers.
Pegasus' Yolanda Robins said, "After 18 months, it's good to see a deal finally come to fruition, and that the satellite TV business is able to get back to business." She said Pegasus is looking forward to working with EchoStar and Charlie Ergen "as a new business partner." Still, she stressed Pegasus' exclusive deal to serve rural areas with DirecTV "stands firm."
"We want to make it clear that we are totally committed to the business long-term, and we are totally committed to serving rural areas," Robins said. Pegasus provides DirecTV to more than 1.4 million customers through its affiliation with the National Rural Telecommunications Cooperative.
The Consumers Union and its co-director Gene Kimmelman said the organization will ask the Justice Department's antitrust division to reject the merger between EchoStar and Hughes unless the combined entity meets two conditions.
Under the first demand, the Consumers Union said it wants EchoStar to offer the same prices, terms and conditions to consumers in rural America as it does to consumers in other parts of the country.
Secondly, EchoStar must drop its opposition to a pending license application from Northpoint Technology to offer a competing wireless service. Northpoint wants to transmit terrestrial signals on the same frequencies DBS uses, a move opposed by satellite interests concerned about interference the wireless offering creates for satellite TV signals.
"If these two conditions are met, the deal could actually yield a net benefit for consumers," Kimmelman said. "There are some antitrust problems here. But they can be fixed if the federal government insists upon these conditions."
As for Northpoint, the company said it opposes the deal. "This merger caps a long-history of anti-competitive conduct by the satellite industry and demonstrates their failure to provide competitive choices for rural Americans. Now, more than ever, the marketplace needs the new nationwide price and service competition that our company can offer," said Northpoint President Sophia Collier.
And there is retailer reaction. One told SkyRETAILER.com that Ergen "has always had his sites set on toppling the cable empire. He now has the firepower." Some opposition surfaced, with one retailer saying the damage done by the combination "would be huge, and would greatly overshadow all positive points to such a merger."
SkyRETAILER has more reaction to the merger news. For more, check out the site at: www.skyretailer.com.
Pegasus' Yolanda Robins said, "After 18 months, it's good to see a deal finally come to fruition, and that the satellite TV business is able to get back to business." She said Pegasus is looking forward to working with EchoStar and Charlie Ergen "as a new business partner." Still, she stressed Pegasus' exclusive deal to serve rural areas with DirecTV "stands firm."
"We want to make it clear that we are totally committed to the business long-term, and we are totally committed to serving rural areas," Robins said. Pegasus provides DirecTV to more than 1.4 million customers through its affiliation with the National Rural Telecommunications Cooperative.
The Consumers Union and its co-director Gene Kimmelman said the organization will ask the Justice Department's antitrust division to reject the merger between EchoStar and Hughes unless the combined entity meets two conditions.
Under the first demand, the Consumers Union said it wants EchoStar to offer the same prices, terms and conditions to consumers in rural America as it does to consumers in other parts of the country.
Secondly, EchoStar must drop its opposition to a pending license application from Northpoint Technology to offer a competing wireless service. Northpoint wants to transmit terrestrial signals on the same frequencies DBS uses, a move opposed by satellite interests concerned about interference the wireless offering creates for satellite TV signals.
"If these two conditions are met, the deal could actually yield a net benefit for consumers," Kimmelman said. "There are some antitrust problems here. But they can be fixed if the federal government insists upon these conditions."
As for Northpoint, the company said it opposes the deal. "This merger caps a long-history of anti-competitive conduct by the satellite industry and demonstrates their failure to provide competitive choices for rural Americans. Now, more than ever, the marketplace needs the new nationwide price and service competition that our company can offer," said Northpoint President Sophia Collier.
And there is retailer reaction. One told SkyRETAILER.com that Ergen "has always had his sites set on toppling the cable empire. He now has the firepower." Some opposition surfaced, with one retailer saying the damage done by the combination "would be huge, and would greatly overshadow all positive points to such a merger."
SkyRETAILER has more reaction to the merger news. For more, check out the site at: www.skyretailer.com.