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DOJ Blocks Satellite TV Merger
EyesWideOpen writes "The Justice Department filed a lawsuit to block a merger between EchoStar Communications and Hughes Electronics that would have created the nation's largest pay-television service, stating that 'This merger would give EchoStar control of the skies for the provision of video programming by satellite, leaving customers to suffer from the resulting reduction of competition'. The FCC had already voted unanimously to oppose the merger because it would create a monopoly that would have 'adverse' effects for consumers."
Adverse effects??? Someone care to tell me where the hell these people were when Cable companies took root in my town??? Oh, did I say companies? I meant company... Adverse effects of that don't seem to bother these idiots... so much for affordable broadband via satellite throughout the country... so much for local tv service in real digital quality (not the digital BS cable has)... Ick... At first glance this seems like a great victory against monopolies... but what does it really mean???
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Programming is like sex... Make one mistake and support it the rest of your life.
I agree. Where I live, it's AT&T for cable, and that's all. Up until recently, it was USWEST/QWEST for phone service. I guess the satellite companys just didn't bribe enough politicans.
Everything the FCC has been doing under Michael Powell is pro-merger, pro-consolidation, anti-consumer.
So, I say, what's the frequency, Michael? What's the hidden agenda here - because there obviously must be one.
A good move, especially considering that the barrier for entry to that industry is so insanely high that only Microsoft would dare attempt it.
With that said, how much do you want to bet that Microsoft tries to buy one of them?
evil adrian
I'm sure it seems like this is a great thing, having prevented a satellite TV monopoly, but look again: unlike cable, which is limited only by the expense of laying and lighting cable, satellite has severe constraints on expansion of their service. It's really expensive (and risky) to launch a satellite, there are limited orbits for them to use, and limited frequencies for them to use. A merger would have meant that the two companies could have pooled their resources and offered local channels throughout the country. Instead there's a huge duplication of effort, neither of which is adequate. So instead of less populous areas being subject to a monopoly (whose prices could have been controlled by other means, namely a single nationwide pricing scheme), they're subject to NO decent service. Cable, meanwhile, enjoys an effective monopoly in all those areas, at whatever price it feels like, assuming it feels like serving them at all.
(BTW: another brain-dead, protectionist aspect of the legalities surrounding satellite TV - unless you're in a particular local broadcast market, you're not allowed to receive channels in it - even if the equivalent channel doesn't exist in your area, or no local service is available for your area! I.E. I can't get UPN nor WB via satellite, despite the fact that they are actually broadcasting it off the same bird I would receive from. )
---If you can't trust a nerd, who can you trust?
Remember when having cable tv meant you had pretty much commericial free tv? The big 3 had to
have commericials to pay for the shows. Cable TV is something you HAVE to pay for. Now there are
as many or more commericials on CABLE TV. So I not only pay the %$#^@'s for the cable, but also
have to endure #$(#^(# commericals.
I would let them have their monopoly if they would promise to get rid of the commericials.