House Western Caucus took opposition to proposed EchoStar acquisi...
House Western Caucus took opposition to proposed EchoStar acquisition of DirecTV to FCC Chmn. Powell and Attorney Gen. John Ashcroft, citing concerns that merged entity’s planned national pricing plan wouldn’t protect consumers. Caucus, led by Chmn. Pombo (R-Cal.) and…
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Vice Chmn. Cannon (R-Utah), said in Dec. 19 letter released Mon. that “from the standpoint of rural and Western consumers, we don’t believe this a viable solution. National pricing wouldn’t protect rural consumers from a situation where the merged company might choose to maximize revenues from captive customers in rural areas, with the resulting windfall profits more than compensating for lost market share in urban areas.” Deal supporters have told Congress that national pricing would ensure that rural customers benefited from sale by putting them on par with urban consumers. Several House members from rural areas agreed (CD Dec 5 p3) with EchoStar and DirecTV executives that deal was in best interests of people in underserved areas and provided viable alternative to cable.