Group of 86 House members urged FCC and Dept. of Justice to ‘rigo...

(D-N.C.) told FCC Chmn. Powell and Attorney Gen. John Ashcroft in letter Dec. 19 that merger could affect rural residents if it were approved without appropriate consumer protections: “Accordingly, we believe that strictly enforced consumer safeguards regarding price, quality and access to vital telecommunications services must be part of any merger approval between EchoStar and Hughes… Meaningful and enforceable concessions are needed, not empty pledges that provide no protection or value.” Congressional review of proposed consolidation (CD Dec 5 p3) of nation’s largest DBS providers thus far has produced mixed response. While some members say merger is needed for greater competition with cable and to increase broadband capacity, others say it would eliminate competition in that industry segment. Charles Ergen and Eddy Hartenstein, respective chmn. of EchoStar and DirecTV, said in response letter to rural caucus members that merged entity would continue to offer uniform nationwide pricing structure. “This pricing structure extends the benefits of competing with cable companies in rural areas to those who live in the most remote areas.” They said their companies always had counted on “subscribers in rural areas as among our most loyal, and they will continue to be a vibrant part of our future. We believe the merger will enable the company to offer even more benefits to rural consumers than currently available.” They reiterated their position that merger would increase: (1) Efficiencies that allow additional markets to receive local programming. (2) Offerings of HDTV and interactive services. (3) Deployment of high-speed Internet services in rural regions.