EchoStar and Directv ask FCC to delay decision

[Gregg Lengling]

WASHINGTON

EchoStar Communications Corp. and Hughes Electronics asked federal
regulators Monday to delay a decision on their proposed $26 billion
merger, which would create the largest pay-TV service in the country.

In a letter to Federal Communications Commission Chairman Michael
Powell, the companies asked for more time to discuss the possibility of
"major revisions" with the Justice Department, which is reviewing the
merger for antitrust implications.

It says the companies have agreed to submit proposed remedies which will
be discussed with the Justice Department on Oct. 28.

"There are many important consumer benefits at stake, so we are asking
the FCC not to rush to judgment before the DOJ completes its review,"
EchoStar spokesman Marc Lumpkin said. "We continue to believe that this
transaction offers substantial benefits to consumers and we look forward
to working with the government to gain approval, including discussion of
possible remedies."

EchoStar runs Dish Network; Hughes operates DirecTV. Together they serve
about 18 million subscribers.

Opponents say a merger will create a monopoly, particularly in rural
areas where cable television is not an option.

The letter said that EchoStar CEO Charles Ergen gave a two-day
deposition to Justice Department staff last week and that the agency
wants to meet with him again. No date has been set.

The two companies also asked Powell to conduct a public hearing on the
merger.


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Gregg R. Lengling
RCA P61310 61" 16x9
glengling@ameritech.net

[Gregg Lengling]

FCC Votes to
Hold Public Hearing on
EchoStar-DirecTV, CNBC Says


By Patricia Azer


Washington, Oct. 10

(Bloomberg)

The U.S. Federal Communications Commission voted to hold a public hearing on EchoStar Communication Corp.'s plan to buy Hughes Electronics Corp., owner of larger satellite-television rival DirecTV, David Faber said on financial news network CNBC, citing unidentified people close to the matter.

The FCC voted 4-0 to seek public comment on the plan, which will give EchoStar and Hughes more time to submit a new proposal, CNBC said, citing the people.


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Gregg R. Lengling
RCA P61310 61" 16x9
glengling@ameritech.net