DBS Merger Fight Not Over Yet

Sure, the Federal Communications Commission decided on Thursday to block the proposed merger between EchoStar and DirecTV. But both merger opponents and proponents, opportunists and the regulators themselves said they know the battle over the multi-billion-dollar deal isn't finished.

At issue is a 30-day period the Commission gave the companies to come up with revisions for their merger proposal. While saying they were disappointed with the decision, the companies involved issued a joint statement saying they will continue to "work aggressively within the context of this FCC process to achieve approval of the merger."

FCC Commissioner Kevin Martin talked about the 30 days the companies have to amend their application to include major revisions, which could include divestiture of orbital locations. "This idea is interesting, but the applicants have made no such proposal," Martin said.

"If the applicants were to request such a structural remedy, it could merit further review as to its technical and economic feasibility. Failing to fully explore such options could be a missed opportunity to bring more competitive choices to consumers," Martin said.

Charles Dolan, CEO of Cablevision, which wants to take control of the 61.5-degree DBS orbital location it shares with EchoStar, said the FCC decision "provides an opportunity for a restructured plan that will expand competition among facilities-based providers. The divestiture of spectrum we have proposed is a reasonable structural remedy that will not only answer concerns about reduced competition, but also will result in more satellite viewers receiving local programming from multiple sources in markets nationwide."

From SkyReport (Used with Permission)