03.06.02

Senator Cantwell's Statement (As Prepared) for the Senate Judiciary Antitrust Subcommittee Hearing on the EchoStar/Direct TV Merger

Mr. Chairman, thank you for calling this hearing to consider the merger of Echostar and DirectTV, the nation's two principle direct broadcast satellite providers.

Direct broadcast satellite holds the greatest promise of current technology to deliver high-speed broadband access to America's rural communities.

We are told that the merger of these two competing companies will improve communications services to our rural communities, including high-speed broadband.

For so many of our rural communities, high speed broadband is critical to economic development, education, worker training and the improved safety and welfare of those living in these less populated regions.

Late last year, Mr. Ergan visited me and explained his goals for the proposed merged company. And in light of the dearth of spectrum, I certainly understand the potential benefits of this merger, eliminating duplicative services and reallocating that spectrum to new content and services.

Mr. Ergan also has publicly made several assurances, particularly in regard to the rural services the combined companies would be able to expand: nationwide pricing; better broadband service to rural communities; and most recently, a promise of local-into-local programming for all 210 television markets.

These are important commitments and I do not take them lightly. As a general matter, I strongly believe competition is important to assuring consumers the best services at reasonable prices. As to rural communities, where DSL and cable broadband may not reach, this merger would, for the time being, eliminate competition. But I have listened to Mr. Ergan's commitments carefully and I look forward today to hearing from our witnesses as to how, and how rapidly these commitments will be met, and whether we can expect the merger to be conditioned on meeting any of these obligations.

Again, thank you Mr. Chairman for holding this hearing and I want to thank the witnesses for coming before us today.