Steve Mehs
11-26-02, 05:18 AM
EchoStar and Hughes Electronics told the Federal Communications Commission that it made a mistake in disregarding the benefits their proposed merger would create for broadband development, especially in light of the commission's approval of the AT&T Broadband/Comcast merger.
In comments sent to the FCC last week, EchoStar and Hughes, parent of DirecTV, said Comcast and AT&T Broadband - already established broadband providers - were able to argue their combination would provide the financial wherewithal and scale to accelerate broadband deployment. The two satellite TV companies responded that their combination also would become an effective provider of residential broadband service, if given the chance.
"It appears that the commission held EchoStar and Hughes to a much higher - and impossible to meet - standard," the companies said.
In addition, "the commission has also misapplied its policy of promoting the interest of rural consumers. Correct application of that policy tilts the benefit/harm balance even further in favor of the grant," EchoStar and Hughes said in their comments.
In October, the FCC said it would oppose the proposed merger between EchoStar and DirecTV/Hughes, and sent the matter to an administrative judge for a hearing, a move viewed by many as killing the deal. The agency gave the companies a chance to submit remedies addressing its objections. Those remedies are expected to be filed at the FCC this week.
In addition to comments on broadband deployment, EchoStar and Hughes asked the FCC to approve their merger without an administrative judge hearing. They also asked that the FCC make a decision on their revised merger application before Jan. 6.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/112602.shtm#one) (Used with Permission)
In comments sent to the FCC last week, EchoStar and Hughes, parent of DirecTV, said Comcast and AT&T Broadband - already established broadband providers - were able to argue their combination would provide the financial wherewithal and scale to accelerate broadband deployment. The two satellite TV companies responded that their combination also would become an effective provider of residential broadband service, if given the chance.
"It appears that the commission held EchoStar and Hughes to a much higher - and impossible to meet - standard," the companies said.
In addition, "the commission has also misapplied its policy of promoting the interest of rural consumers. Correct application of that policy tilts the benefit/harm balance even further in favor of the grant," EchoStar and Hughes said in their comments.
In October, the FCC said it would oppose the proposed merger between EchoStar and DirecTV/Hughes, and sent the matter to an administrative judge for a hearing, a move viewed by many as killing the deal. The agency gave the companies a chance to submit remedies addressing its objections. Those remedies are expected to be filed at the FCC this week.
In addition to comments on broadband deployment, EchoStar and Hughes asked the FCC to approve their merger without an administrative judge hearing. They also asked that the FCC make a decision on their revised merger application before Jan. 6.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/112602.shtm#one) (Used with Permission)