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AP
Senators Seek Satellite TV Probe
Tuesday September 5, 8:22 pm ET
By John Dunbar, Associated Press Writer
Senators Seek Probe of Dispute Involving Dominant Satellite Television Companies
WASHINGTON (AP) -- Colorado's two senators have asked the Senate Judiciary Committee to look into an escalating dispute involving the nation's two dominant satellite television companies.
Sens. Wayne Allard, a Republican, and Ken Salazar, a Democrat, asked the committee in a letter last Friday to examine whether The DirecTV Group Inc., controlled by global media giant News Corp., "has engaged in behavior that would threaten the viablity of the satellite TV market."
A Judiciary Committee aide said the committee is "looking into the situation and urging all parties to settle this matter to ensure uninterrupted service to consumers."
The dispute involves a long-running legal battle over the re-transmission of "distant network" channels.
Satellite customers in some small markets that are not home to local network affiliates receive their network programming from network stations in distant markets.
The networks filed a lawsuit in 1998 accusing satellite companies of offering distant network signals to customers in areas that weren't supposed to get them.
Since that suit was filed, EchoStar has continued to fight in court. In May, a federal appeals court in Atlanta ruled on the side of the networks.
Last week, EchoStar and affiliates of ABC, NBC and CBS, as well as affiliates of the Fox Network, agreed to a $100 million settlement that would allow the company to continue transmitting their signals.
Stations that air the Fox network but are not owned by Fox agreed to the settlement. But the 25 stations that are owned by Fox -- a subsidiary of News Corp. -- did not go along. News Corp. also owns a controlling interest in DirecTV.
Instead, Fox filed a request for an injunction that would prevent EchoStar from transmitting the signals from any of the four networks.
At the same time, DirecTV began running ads in some affected markets in an attempt to pick up EchoStar customers.
Critics of Fox say the broadcaster and its parent are using the court case to take away customers from EchoStar.
A newspaper ad in Lafayette, La., for example, says "Attention Dish Network customers -- you're about to lose NBC." It goes on to say "Dish Network is being forced to turn off certain network stations as a result of their illegal activity" and to "Switch to DirecTV today."
The two senators from Colorado in their letter say Fox's rejection of the settlement "raises serious questions about whether the News Corporation, using Fox Network and DirecTV, has engaged in behavior that would threaten the viability of the satellite TV market. These developments merit diligent oversight by the Judiciary Committee."
The senators wrote they want to "ensure that Fox's decision to pull out of negotiations was not motivated by a desire to ensure that DirecTV wins the market share that will be abandoned should EchoStar be forced to turn off its distant signals."
Fox spokesman Andrew Butcher said his company proved its case in court and has done nothing wrong.
"We've had to fight this company's egregious misbehavior for eight years and now that we've won, they've gone crying to Congress," he said.