NAB: Merger Creates Huge Monopoly
The proposed merger between EchoStar Communications Corp. and DirecTV Inc.
would create 'the world's largest monopoly video-delivery system,' deserving
tough government review, the National Association of Broadcasters said
Monday.
NAB president Edward Fritts, in a prepared statement, said approval of the
deal should be conditioned on the carriage of all local TV signals. EchoStar and
DirecTV are challenging the mandatory-carriage requirement in federal court.
'In our view, Congress, the executive branch and federal regulators should
review this proposal with a high level of scrutiny,' Fritts said.
He added that a must-carry condition was proper because 'this acquisition --
should it go forward -- would increase exponentially the satellite-channel
capacity of EchoStar.'
Under federal law, direct-broadcast satellite services may carry any local TV
station they want. On Jan. 1, DBS carriers must carry any requesting TV station
in a market where they offer any local TV stations to their
subscribers.
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