CPT: EchoStar, TCI and ownership of Canadian DBS frequencies

[James Love <love@Essential.ORG>]

-----------------------------------------------------------------
TAP-INFO - An Internet newsletter available from listproc@tap.org
-----------------------------------------------------------------
INFORMATION POLICY NOTE - DBS Concentration
April 16, 1996

-    The following is a letter sent to the FCC by CPT to express
     new concerns about concentration of ownership of Direct
     Broadcast Satellite (DBS) frequencies.

-    The letter is a response to recent efforts by TCI, the large 
     cable operator, and EchoStar, the firm that currently controls 
     the largest chunk of U.S. frequencies for DBS, to acquire control
     over DBS frequencies that have been assigned to the Canadian
     government, but which will likely be used to broadcast to U.S.
     consumers.

-    Jargon:  The letter makes references to full-CONUS or partial-CONUS
     frequencies for DBS.  CONUS is a term used by the FCC to describe
     full or partial coverage of the Continental US (CONUS).  Each DBS
     frequency can be used to broadcast several "channels" of 
     Television, or other types of data.  


Todd Paglia (tpaglia@tap.org) is working on this for us.  The 
letter follows.  jamie love (love@tap.org; 202/387-8030)


			Consumer Project on Technology
			P.O. Box 19367, Washington, DC 20036
			202/387-8030; Fax 202/234-5176
			http://www.essential.org/cpt

April 16, 1996


The Honorable Reed Hundt
Chairman
Federal Communications Commission
1919 M Street, N.W., Room 814
Washington, D.C.  20554

Re:  EchoStar or TCI's  Attempts to Acquire Canadian DBS 
Orbital Positions to broadcast in the United States

Dear Chairman Hundt:

We are writing to express our concern over reports that 
EchoStar and TCI are seeking to acquire control over a 
substantial number of full-CONUS DBS frequencies which are 
assigned to the Canadian government, and to ask the FCC to 
review rules which concern the impact of broadcasting to the 
United States from the Canadian DBS orbital positions.

In our earlier April 5, 1996 letter (attachment), we 
expressed concerns about efforts by EchoStar to acquire 
frequencies now controlled by the Direct Broadcast Satellite 
Corporation-Delaware, which would give EchoStar 90 out of 
the 256 DBS frequencies available in the U.S, including 23 
percent of all US full-CONUS frequencies, and 43 percent of 
all US partial-CONUS frequencies.  We also expressed our 
concerns about TCI or other large U.S. cable operators 
acquiring DBS frequencies, because this will lead to too 
much concentration of ownership in the market for cable and 
DBS video programming, hurting consumers and unaffiliated 
programmers.

We raise these concerns again, in a different context. 
According to recent press reports and Commission filings, 
both EchoStar and TCI have engaged in discussions with firms 
that control full-CONUS DBS frequencies which are assigned 
to the Canadian government.  If either EchoStar or TCI (or 
any other large US cable operator such as Time-Warner or 
U.S. West) is permitted to obtain the Canadian DBS 
frequencies to serve the U.S. market, the FCC should 
consider the impact of such action on concentration in the 
U.S. market.

In the case of EchoStar, consider the concentration of 
full-CONUS frequencies. Currently EchoStar controls 22 of 96 
US full-CONUS frequencies.  EchoStar is seeking to acquire 
or gain control over 32 of the 64 Canadian full-CONUS 
frequencies.  This would give EchoStar control over 54 of 
the 160 combined U.S. and Canadian full-CONUS frequencies, 
or about 34 percent of the total.[1]

If permitted, these acquisitions will give EchoStar 
enormous market power.  As noted in our earlier letter and 
pleadings, EchoStar is also holding discussions with TCI and 
other large telecommunications giants about possible 
strategic alliances or mergers, leading to even further 
concentration.  We are alarmed that such aggregations of 
frequencies will greatly diminish the role of DBS as a new 
competitor to cable television.

The Commission can and should address the impact of 
broadcasting to U.S. consumers from the Canadian 
frequencies.   Specifically, the Commission should limit the 
number of U.S. DBS frequencies that any firm should be 
permitted to own or control, so consumers will benefit from 
more competition.  And in determining those limits, the 
Commission should consider ownership or control over the 
Canadian frequencies, if those frequencies are used to 
broadcast to U.S. consumers.

 

Submitted:  April 16, 1996,


__________________		__________________
James Love			Todd J. Paglia
Director			Staff Attorney
	
Consumer Project on Technology		
PO Box 19367					
Washington, DC  20036
	

cc:	The Honorable James H. Quello
	The Honorable Rachelle B. Chong
     	The Honorable Susan Ness



[1] As noted in our earlier filings, EchoStar is seeking to 
increase its holdings of U.S. partial- CONUS frequencies from 
46 to 68, which would give EchoStar control over 43 percent of 
U.S. partial-CONUS frequencies

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
INFORMATION POLICY NOTES is a free Internet newsletter sponsored
by the Taxpayer Assets Project (TAP) and the Consumer Project on
Technology (CPT).  Both groups are projects of the Center for
Study of Responsive Law, which is run by Ralph Nader.  The
LISTPROC services are provide by Essential Information.  Archives
of TAP-INFO are available from

http://www.essential.org/listproc/tap-info/

TAP and CPT both have Internet Web pages.

http://www.tap.org
http://www.essential.org/cpt

Subscription requests to tap-info to listproc@tap.org with
the message:  subscribe tap-info your name

TAP and CPT can both be reached off the net at P.O. Box 19367,
Washington, DC  20036, Voice:  202/387-8030; Fax: 202/234-5176
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++