FCC Taking Comments on New DBS Merger Proposal

[Gregg Lengling]

The Federal Communications Commission has put up for public comment the revised application from EchoStar and DirecTV concerning their billion-dollar merger, giving those who wish to offer remarks on the modified proposal a deadline of Jan. 3, 2003, to submit any statements.

Reply comments on the revised DBS merger proposal are due to the FCC Jan. 21. The Jan. 3 public comment and Jan. 21 reply comment deadlines are tight ones for the DBS merger, given that DirecTV parent Hughes can walk away from the merger proposal on Jan. 21.

Comments will likely center on EchoStar's offer to divest DBS spectrum and a satellite to Cablevision's DBS endeavor - Rainbow DBS - in order to win regulatory approval for the merger. Other offers include leasing EchoStar I and EchoStar II satellites to Rainbow DBS as well as giving Rainbow the right to resell a merged company's services.

In October, the FCC and the Justice Department's antitrust division said they would block the EchoStar/DirecTV merger.

In a statement, EchoStar said with its new proposal at the FCC the company is "willing to extend applicable termination dates in our contract to make allowances for the FCC comment period." The company also said it will read the public comments and respond accordingly.