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An arrangement that everyone qualifies for networks.

Here's how it'd go:

1) Top 50 markets - mustcarry effective, all local channels carried.
2) Sub 50 markets, Dish can offer the neighboring market to viewers.
3) No merger, so competition exists between providers.

Example: Augusta GA viewers can watch Atlanta stations.

Dish commits to carry to offer each state though locals, so if Nebraska is not part of a top 50 DMA, the biggest market in the Nebraska state, Dish cannot offer distants there. If they want Nebraskans to get networks, they have to carry the stations from that state.

So in essence, it cuts down the number of channel carried but still there would be more people getting networks via satellite, and there is preservation of station groups in the top 50 markets. The station groups are more concerned of preserving their interests in the Top 50 markets. The smaller markets usually are in survival mode, are missing networks, have awfully produced newscasts, are not profit-makers and NAB as concerned with those.
 

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This is not workable. Even if the NAB relented and that is a HUGE IF. The SVHIA law specifies that each and every market carried is subject to Must carry, not matter want the NAB says or allows.

This proposal is DOA.

The merger is a great idea for DBS, in fact if the translation to HDTV becomes as much of a reality is the federal Government wants it to, then DBS is in BIG trouble with very little bandwidth left to compete with Cable.

The merger would allow the newly merged companies to carry all Local Programing and be able to offer around 12 HDTV channels as well. Neither provider could do this on their own especially with their bandwidth limitations, even considering new Compression technologies that may be possible.

At the moment DirecTV is bleeding big dollars and losing money each and every quarter. Dish has had one quarter with a positive cash flow but is still losing money. Couple this with the loss of Alphastar, Primestar it just shows that both companies will run into troubles if they can't stop bleeding red ink they have to be able to make a profit, hell even the cable industry is having problems with costs (Look at Adelphia for example). Seperately Dish and DirecTV can continue only for another year or so before they start having very big money problems. This merger is essential for their economic viability and that of DBS.

John
 
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