Steve Mehs
10-29-02, 04:29 AM
Cablevision is gaining more attention for its proposed satellite TV plans and how they can help the proposed merger between EchoStar and DirecTV.
The Washington Post said Monday that a proposal was sent last week to the Justice Department detailing how EchoStar would transfer some of its spectrum to the cable operator's satellite TV company, Rainbow DBS. Under the deal, EchoStar also would sell a satellite to Cablevision and allow access to some of its programming.
The additional satellite capacity would allow Rainbow DBS to cover the entire country, with East Coast and West Coast orbital slots acquired from EchoStar, other news reports said Monday. If the deal with EchoStar wins approval, Rainbow DBS would get 62 frequencies in two slots, the Washington Post article said.
In addition, Cablevision would stick to plans to launch its own satellite in March.
It's expected that Cablevision would spend $300 million by the end of 2002 in developing Rainbow DBS, the Post said. If the deal with EchoStar is approved, Cablevision would likely need to raise additional money by selling some assets, including programming interests.
No official comment came from the companies concerning the Post article or other stories surfacing around the Cablevision/EchoStar deal.
But the reported revisions got some support. Rep. Rick Boucher (D-Va.) sent a letter to Attorney General John Ashcroft asking the Justice Department to favorably examine the merger revisions. And a spokesman for the House Commerce Committee chaired by Rep. Billy Tauzin (R-La.) was quoted in the press saying the new proposal "deserves a thorough review by the agencies."
EchoStar executives, including Charlie Ergen, were set to meet with the Justice Department's antitrust staff on Monday to discuss the merger, which was rejected by the Federal Communications Commission on Oct. 10. It's expected that the Justice Department also may block the deal on antitrust concerns.
As for the Cablevision stories, an EchoStar spokesman said, "We have been working very hard with regulatory officials and continue to work with them to propose structural remedies, but we will not comment on specifics of any remedies."
From SkyReport (http://www.skyreport.com/skyreport/oct2002/102902.shtm#one) (Used with Permission)
The Washington Post said Monday that a proposal was sent last week to the Justice Department detailing how EchoStar would transfer some of its spectrum to the cable operator's satellite TV company, Rainbow DBS. Under the deal, EchoStar also would sell a satellite to Cablevision and allow access to some of its programming.
The additional satellite capacity would allow Rainbow DBS to cover the entire country, with East Coast and West Coast orbital slots acquired from EchoStar, other news reports said Monday. If the deal with EchoStar wins approval, Rainbow DBS would get 62 frequencies in two slots, the Washington Post article said.
In addition, Cablevision would stick to plans to launch its own satellite in March.
It's expected that Cablevision would spend $300 million by the end of 2002 in developing Rainbow DBS, the Post said. If the deal with EchoStar is approved, Cablevision would likely need to raise additional money by selling some assets, including programming interests.
No official comment came from the companies concerning the Post article or other stories surfacing around the Cablevision/EchoStar deal.
But the reported revisions got some support. Rep. Rick Boucher (D-Va.) sent a letter to Attorney General John Ashcroft asking the Justice Department to favorably examine the merger revisions. And a spokesman for the House Commerce Committee chaired by Rep. Billy Tauzin (R-La.) was quoted in the press saying the new proposal "deserves a thorough review by the agencies."
EchoStar executives, including Charlie Ergen, were set to meet with the Justice Department's antitrust staff on Monday to discuss the merger, which was rejected by the Federal Communications Commission on Oct. 10. It's expected that the Justice Department also may block the deal on antitrust concerns.
As for the Cablevision stories, an EchoStar spokesman said, "We have been working very hard with regulatory officials and continue to work with them to propose structural remedies, but we will not comment on specifics of any remedies."
From SkyReport (http://www.skyreport.com/skyreport/oct2002/102902.shtm#one) (Used with Permission)