COURT DENIES ECHOSTAR APPEAL ON COMCAST PROGRAM ACCESS
U.S. Appeals Court, D.C., denied EchoStar bid to overturn FCC order that denied its program access complaint against Comcast involving delivery of SportsNet regional programming in Philadelphia (CD Feb 6 p3). EchoStar had challenged FCC decision that Comcast didn’t have to provide network to DBS operator because program access rules applied only to satellite-delivered network. Court rejected EchoStar argument that use of terrestrial network was just effort to evade program access rule, calling Commission decision reasonable and supported by substantial evidence.
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Court said Comcast testimony supported Commission finding that terrestrial delivery cost substantially less than satellite delivery despite EchoStar contentions that testimony was unsupported, untested, hearsay. Comcast had said it saved $600,000 by using terrestrial network. Commission didn’t ignore any significant evidence in making ruling, court said.
Ruling didn’t “surprise” EchoStar, but company is “disappointed,” spokesman said: EchoStar “continues to believe that Comcast’s actions in Philadelphia undermine competition and harm consumers.” EchoStar is “hopeful” court decision will “encourage FCC to extend the prohibition against exclusive contracts and encourage Congress to close the terrestrial loophole once and for all.” Decision may “open the floodgates to increased evasions” of program access rules, spokesman said: “Anticompetitive tactics could spread to other cable companies.” Comcast declined comment on decision.
Cablevision, which would be in similar position as Comcast because of its Madison Sq. Garden (MSG) Network and its hold over sports programming of N.Y. Knicks and Rangers, declined to comment on ruling or whether it might make more sense for company to transmit that programming terrestrially now. Industry source said such thinking “would not be totally off base.” Comcast declined to comment on ruling.