More Meetings for Merging DBS Companies

While regulators continue to scrutinize the proposed merger between EchoStar and DirecTV, officials from both companies are keeping their appointments with federal and state officials about plans to combine operations.

Personnel from both companies met with staff from FCC Commissioner Kathleen Abernathy's office to discuss the $26 billion deal last week, according to FCC documents. Their presentation included the usual selling points on the merger: Local TV for all 210 of the nation's DMAs, affordable satellite broadband, and the ability to compete more effectively with cable.

Some of the slides presented to Abernathy's staff included the companies' take on opposition to the transaction, including arguments from Pegasus and the National Rural Telecommunications Cooperative. In one slide, EchoStar and DirecTV said the NRTC and Pegasus are using the merger proceeding to gain a strategic advantage in their continuing litigation with DirecTV.

In response, NRTC's Adam Schwartz said the claim that the cooperative is using the FCC proceeding to gain leverage in the litigation "is not the case at all." He said the NRTC continues to tell regulators that the deal "is a merger (creating a) monopoly, and our concern is that it will have an impact on 22 million rural households that don't have cable or cable modem service.

"That has been our concern since the merger was first announced, and the merging parties haven't alleviated those concerns," Schwartz said.

At the Securities and Exchange Commission, Hughes filed its third proposed draft of the proxy it will eventually send to shareholders, which would seek their approval of the transaction.

The filing contained the typical language found in most SEC documents. Highlights included a detailed description of EchoStar's past use of embattled auditing firm Arthur Andersen as its independent public accountant. Arthur Andersen was dismissed by EchoStar in June, and was replaced by KPMG.

From SkyReport (Used with Permission)