Steve Mehs
11-04-02, 04:18 AM
Reaction to the Justice Department's decision to block the proposed EchoStar/DirecTV merger was mixed, with rural groups offering support for the DOJ move but consumer groups blasting it.
The American Cable Association (ACA), which represents small independent cable businesses that provide service to nearly 8 million customers in smaller towns and rural America, said the Justice Department decision was the "right thing for rural areas."
Said ACA President Matt Polka, "Independent cable businesses in all 50 states applaud the leadership of the DOJ to stop this giant, entrenched satellite monopoly right in its tracks. This decision means that competition will truly have a chance to flourish in smaller markets and rural areas."
Idaho Attorney General Al Lance also had concerns about the merger's impact on rural TV viewers. "In large areas of rural Idaho not served by cable, consumers would be at the mercy of a direct satellite monopoly and, nationwide, the programming options for most consumers would be reduced to a choice between one cable company and one satellite provider. Elimination of competition does not benefit consumers."
Those comments echoed earlier statements from the National Rural Telecommunications Cooperative and its CEO, Bob Phillips. The DOJ decision, "is great news for the millions of Americans who would have been facing a monopoly for satellite TV and Internet service if this merger had been approved," Phillips said.
On the other side, consumer groups said they wanted the merger to win approval. A combined satellite TV platform could have a chance in influencing rising cable TV rates, they said.
The groups also criticized the merger process in Washington, D.C. "Coming so close to the election, this decision reeks of political influence," said Karen Kerrigan, chairwoman of the Small Business Survival Committee. "We hope that is not the case."
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110402.shtm#one) (Used with Permission)
The American Cable Association (ACA), which represents small independent cable businesses that provide service to nearly 8 million customers in smaller towns and rural America, said the Justice Department decision was the "right thing for rural areas."
Said ACA President Matt Polka, "Independent cable businesses in all 50 states applaud the leadership of the DOJ to stop this giant, entrenched satellite monopoly right in its tracks. This decision means that competition will truly have a chance to flourish in smaller markets and rural areas."
Idaho Attorney General Al Lance also had concerns about the merger's impact on rural TV viewers. "In large areas of rural Idaho not served by cable, consumers would be at the mercy of a direct satellite monopoly and, nationwide, the programming options for most consumers would be reduced to a choice between one cable company and one satellite provider. Elimination of competition does not benefit consumers."
Those comments echoed earlier statements from the National Rural Telecommunications Cooperative and its CEO, Bob Phillips. The DOJ decision, "is great news for the millions of Americans who would have been facing a monopoly for satellite TV and Internet service if this merger had been approved," Phillips said.
On the other side, consumer groups said they wanted the merger to win approval. A combined satellite TV platform could have a chance in influencing rising cable TV rates, they said.
The groups also criticized the merger process in Washington, D.C. "Coming so close to the election, this decision reeks of political influence," said Karen Kerrigan, chairwoman of the Small Business Survival Committee. "We hope that is not the case."
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110402.shtm#one) (Used with Permission)