NAB to Oppose EchoStar-DirectTV Merger

 
 
By Matt Carolan  |  Posted 2001-11-30
 
 
 

The National Association of Broadcasters announced Thursday that it will oppose the proposed merger of EchoStar Communications with DirecTV.

"This merger would create the worlds largest monopoly video delivery system," said NAB President and CEO Edward O. Fritts in a prepared statement.

The NAB announced that TV Board Vice Chairman Michael Fiorile will testify in opposition to the merger at a Dec. 4 House Subcommittee on Telecommunications and the Internet.

The $28.5 billion merger was first announced in October, immediately raising competitive concerns about consolidation in satellite services.

Advocates of the deal have argued however that competitive concerns are overblown, since satellite services are in a more direct competition with cable television companies. Some analysts have also suggested that the merger could create a powerful rival to the regional Bells in the broadband services market.

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