Yale Prof Looks into DBS Merger

Discussion in 'General Satellite Discussion' started by Steve Mehs, Apr 18, 2002.

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  1. Steve Mehs

    Steve Mehs Hall Of Fame

    Mar 21, 2002
    one competitor if the pending $26 billion merger between DirecTV and EchoStar is completed, according to one observer of the deal.

    Paul MacAvoy, a professor at Yale University with a background in antitrust matters, recently conducted an economic analysis of the deal. He found more than a dozen large areas with no cable access that would see competition in the multichannel marketplace shrink from two players to a single satellite TV company.

    "The inference one can take from this is a very substantial part of the country - both in terms of geography and population - have access to high-quality digital television signals because of the presence of these two direct broadcast system providers, but have no other access beyond these two providers," he said Wednesday during a conference call held by Salomon Smith Barney.

    MacAvoy found at least 14 areas - or large market clusters - that have no cable access. MacAvoy said there are approximately 2.5 million living in these areas, and they contain 750,000 satellite TV subscribers.

    The largest of these regional clusters is in the Carolinas, which contains at least 1 million without any access to cable, MacAvoy said. A region in New England was the smallest, with 80,000 residents with no cable and 17,000 subscribing to DBS services.

    MacAvoy has been retained by the National Rural Telecommunications Cooperative to study the impacts of the merger in rural areas. He also recently submitted an extensive declaration on the transaction to the Federal Communications Commission.

    From SkyReport (Used with permission)
  2. lee635

    lee635 Hall Of Fame

    Apr 17, 2002
    Did he address the "one rate card" for the entire country?

    I mean the idea that certain rural areas have no cable is hardly breaking news. What would be a good use of the good Professor's time would be to address the adequacy of management's efforts to address the needs of rural area.
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