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DirecTV and fusion of the network of the PLATE

DirecTV and fusion of the network of the PLATE


By Gary Davis

Dish-Network


Webmasters: You can reprint this article in its totality,
proporcionándote to leave the Byline and on the sections of the author
intact, including the connections to serve the TV via satellite as the network.

(First house of the direct TV) was in October of 2001 that General Motors Hughes and Echostar Communications Corp., retailer of the network of the plate was suitable a fusion. The new company would have improved the services for the clients of the TV via satellite adding many channels of HDTV and the local channels then would be available for all the spectators of the TV via satellite.


Nevertheless, the Ministry of Justice of the E.E.U.U blocked the fusion.


So that they did that?



  • The fusion would create a position of the monopoly


When it was combined the new company would serve all United States without no competition. As we know, the stimuli of the competition progress and a fusion would give rise basically to less progress. At the moment near 25 to 35 million homes they do not have access to the services of the television by cable. That people have the option between 2 companies of the TV via satellite. The fusion would hardly reduce this to 1 company, that is clearly a position of the monopoly that does not allow itself. In areas with the television by cable the fusion would even give rise to hardly 2 suppliers, of who each one has a monopoly in its own technology. In addition, EchoStar demanded that the fusion was necessary to be able to compete against the giants of the television by cable. Nevertheless, the TV via satellite grew very quickly whereas the television by cable loosen to clients. Of each 3 cables nuevos/de clients of the TV via satellite, 2 would go for the TV via satellite.



EchoStar and Hughes promised the local TV that it programmed to the 210 markets of the TV. Nevertheless, the day after this promise, EchoStar requested that the Supreme Court overturned a law that required the local car. They said that they did not have any intention to take all the channels with the new company. When, the local channels were available in hardly 41 markets whereas the 2 companies join had already the technology available to provide the local programming in the 210 markets. A competitive market is more probable to accelerate these services that a regulated monopoly one same one.


A proposed plan of national appraisal that would guarantee that the prices would be equal in rural areas and urban it was also not accepted because the high prices could be fixed too much.


The fusion would create a position of the monopoly for the services of broadband of the Internet.

In the areas that are not served by the DSL or they do not send a cable, the only alternative to the services of broadband of the Internet is via the satellite. The fusion would create a monopoly for the services of broadband of the Internet in these areas.


On all it looked like that that without any other suppliers of the TV via satellite a fusion of the 2 companies was not possible. The interest of the public one was right not served by a fusion (or at least not enough).


Some markets just do not have much competition due to their nature. The satellites are expensive to construct, place in orbit and work. The fact that there are 2 suppliers and not hardly 1 is a blessing for the public and each one can make an option. By all means in Dish-Network we think that the option is easy. The satellite of the network of the plate is our favourite option.


On the author

Gary Davis is owner of the TV via satellite of the network of the plate, has experience of several years in the industry of the TV via satellite and has written several articles in the TV via satellite.