# Another reason for not having a merger



## Guest (Feb 25, 2002)

For those who are against the merger, this might be yet another reason why there shouldn't be one. 
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NRTC Eyes Ka-Band Future

The National Rural Telecommunications Cooperative has been closely watching developments with Ka-Band, satellite spectrum that is being developed for next-generation satellite broadband services.

NRTC has been publicly supporting Ka-Band licensees at the FCC, including a company called Net-Sat 28. NRTC President and CEO Bob Phillips, recently interviewed for the monthly publication SkyRESEARCH, said he couldn't expand on the NRTC's contacts with Ka-Band licensees, saying only the cooperative has talked with "everyone" connected to Ka-Band.

The benefits of Ka-Band frequencies, Phillips said, is that they allow for the introduction of new satellites and capacity as well as bringing new spot-beam capabilities to users. "Those spot-beams will be critical for Ka-Band," Phillips said, since they will target specific parts of the country.

However, Phillips said he is concerned that the Ka-Band future could be determined by a combined EchoStar/DirecTV entity.

EchoStar has Ka-Band spectrum, and along the way has scooped up Ka-Band licensee Visionstar. DirecTV's parent Hughes Electronics, also part of the DISH/DirecTV merger picture, is eyeing the Ka-Band future through its Spaceway endeavor, being developed by Hughes Network Systems.

With Ka-Band spectrum a combined DISH/DirecTV company would have, the merged entity could "control how it's developed," Phillips said.

Phillips' take on Ka-Band is in the February issue of SkyRESEARCH. In addition to Phillips, Pegasus CEO Mark Pagon is interviewed on his company's plans for its Ka-Band spectrum.

From SkyReport (Used with permission)


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## Guest (Feb 25, 2002)

I think in in other instance that the merger would be at risk, however everyone is ignoring the recent events in the cable industry. The FCC has done nothing to stop cable mergers, where the big three ATT/Time Warner, Comcast, and Charter have bought up small local cable companies. They have establihed protected territories, eleminating any chase of cable vs cable compatition. Have continued to raise prices and have annouced plains to continue to raise prices.
Although there is a lot of noise being generated by those who stand to gain by blocking the E/Dtv merger, i feel it will be approved but with a few conditions.

The government will look at the facts and say this results in substantially less competition and conclude the marketplace will be better if it did not go through. 

If the government views the E/DTV merger as resulting in substantially less competition they will be sending the message they will be putting a cap on the development of the satellite tv industry.

You could argue it was a brilliant maneuver by Charlie Ergen. He snatched it away from Rupert Murdoch, who could have put the hammer to EchoStar competitively. He then gets to look at his main competitor, slow him down, and learn all of his inside tricks. 

If the deal gets blocked, he has to pay a break-up fee. But past experience suggests he generally doesn't pay those things quickly, so he won't have to tie that capital up anytime soon. It will be paid off over time. It is a huge competitive gain for him in the short term - for just a little risk. 

I'm done rambling on....


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## Guest (Feb 26, 2002)

> If the deal gets blocked, he has to pay a break-up fee. But past experience suggests he generally doesn't pay those things quickly, so he won't have to tie that capital up anytime soon.


When has he had to pay a break up fee before?


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## Guest (Feb 26, 2002)

I didn't mean for the post to read like that,although it does, it just states that Charlie and or any other companies with fine's or fee's will legally drag there feet.
Sorry, worded wrong.


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