EchoStar Blasts NBC

Cable World, March 20, 2000 by Matt Stump

DBS-broadcaster retransmission consent negotiations are starting to look as ugly as some cable-broadcast deals.

EchoStar Communications Corp. cried foul last week, by telling the FCC that NBC is linking broadcast station carriage agreements with program rate increases for NBC cable networks.

The letter coincided with the FCC's release of rules requiring broadcasters to enter into "good faith" negotiations with DBS carriers for the right to retransmit local signals.

EchoStar didn't name NBC by name, but it became apparent it was NBC when the Peacock Network responded to EchoStar's letter. NBC said its EchoStar proposals "are comparable to deals we've made with satellite and cable competitors," linking local broadcast programming to the Olympics. NBC has Olympic rights through 2008.

EchoStar claimed NBC's price tag for programming exceeded $500 million. This is "further evidence of the need for aggressive prohibitions against discriminatory and anti-competitive conduct," EchoStar said.

Facing a May 29 deadline to get retransmission consent agreements completed, the FCC released rules hoping to goose negotiations. The rules state broadcasters must enter into legitimate negotiations, they can't offer single, unilateral proposals and they must provide reasons for rejecting any offer.

In other satellite news, DirecTV filed a counter suit against EchoStar, claiming trademark infringement and other misdeeds. EchoStar had sued DirecTV last month, claiming the number one DBS provider was monopolizing the market.

DirecTV alleges that EchoStar has engaged in false advertising and misleading claims related to the NFL sports package.