directv and dish network merger

It was in October 2001 that General Motors Hughes (Root company of Direct TV) and EchoStar Communications Corp., trader of Dish Network agreed to a merger. The advanced company would accept improved the services for spacecraft TV clients by adding abounding HDTV channels and local channels would then be available to all spacecraft TV viewers.

However, the US Department of Amends blocked the merger.

Why did they accomplish that?

  • The merger would actualize a monopoly position 

When merged the advanced company would serve all of the United States without any competition. As we all apperceive, competition spurs progress and a merger would basically aftereffect in less progress. At the ad hoc age about 25 to 35 million homes accomplish not accept access to cable TV services. Those bodies accept the choice between 2 spacecraft TV companies. The merger would lessen this to aloof 1 company, which clearly is a monopoly position that is not allowed. Even in areas with cable TV the merger would aftereffect in aloof 2 providers, of which each has a monopoly on its own technology. Further, EchoStar claimed that the merger was needed to be able to compete against the cable TV Giants. However, spacecraft TV was growing actual accelerated while cable TV was loosing clients. Out of every 3 advanced cable/spacecraft TV clients, 2 would action for spacecraft TV.

  • EchoStars proposed self-regulation does not compensate for the basic monopoly issues

EchoStar and Hughes promised local TV programming to all 210 TV markets. However, the day after this promise, EchoStar asked the Supreme Court to overturn a constitution that required local carriage. They said they had no intention to act all channels with the advanced company. At the age, local channels were available in aloof 41 markets while the 2 companies at buttoned up already had the technology available to accommodate local programming in all 210 markets. A competitive marketplace is added likely to speed up these services than a self regulated monopoly.

A proposed state pricing aim that would guarantee that prices would be the selfsame in both rural and urban areas was again not accepted as prices could be set too aerial.

The merger would actualize a monopoly position for broadband internet services

In areas that are not served by DSL or cable, the alone alternative to broadband internet services is via spacecraft. The merger would actualize a monopoly for broadband internet services in these areas.

Over all it seemed that without any other spacecraft TV providers a merger of the 2 companies was not possible. The public’s absorption was aloof not served by a merger (or at least not enough).

Some markets aloof don’t accept much competition as of their attributes. Satellites are expensive to body, put into revolution and operate. The actuality that there are 2 providers and not aloof 1 is a blessing for the public and everyone can accomplish a choice. Of course we at accept that the choice is accessible. Dish Network Spacecraft is our preferred choice.

Webmasters: You may reprint this article in its entirety,
providing you allowance the Byline and About the Author sections
intact, including the links to Dish Network Spacecraft TV.

Gary Davis is owner of Dish Network Spacecraft TV, has several age acquaintance in the Spacecraft TV Industry and has written several articles on spacecraft TV.

Originall posted September 8, 2012