Washington, D.C. (October 24, 2006)
-- A federal judge has ruled that EchoStar must stop
sending "distant" network signals to 800,000
subscribers.
The ruling, which becomes effective on December 1, will cover High-Definition TV signals as well as standard definition feeds.
However, EchoStar said last night that it will ask Congress to allow it to continue the service.
The ruling, which becomes effective on December 1, will cover High-Definition TV signals as well as standard definition feeds.
However, EchoStar said last night that it will ask Congress to allow it to continue the service.
"EchoStar
will continue to do everything possible
to prevent consumers from losing their
distant network channels," the company
said in a statement. "We will ask
Congress to clarify the statutory
language, and ask the courts to
re-consider their decision. In addition,
we are taking numerous steps to protect
our customers from unnecessarily losing
access to those channels."
At issue is EchoStar's practice of providing "distant" network signals to subscribers who say they can't get their local networks by other means, such as an off-air antenna. The satellite service offers feeds from network affiliates in New York and Los Angeles to those customers.
However, local stations have objected, saying their ratings are hurt when viewers watch the "distant" signals instead of theirs. EchoStar earlier this year agreed to a $100 million settlement with affiliates of NBC, ABC and CBS, but Fox rejected the deal.
Fox is owned by News Corp., the corporate parent of DIRECTV, EchoStar's chief satellite rival.
After Fox refused to accept the settlement, EchoStar sued the network saying it was "conspiring" to put it at a competitive disadvantage.
Unless Congress -- or a higher court -- intervenes, EchoStar will be forced to shut down the "distant" signals on December 1. Wall Street analysts have estimated that the action could cost the company millions annually in subscription fees.
At issue is EchoStar's practice of providing "distant" network signals to subscribers who say they can't get their local networks by other means, such as an off-air antenna. The satellite service offers feeds from network affiliates in New York and Los Angeles to those customers.
However, local stations have objected, saying their ratings are hurt when viewers watch the "distant" signals instead of theirs. EchoStar earlier this year agreed to a $100 million settlement with affiliates of NBC, ABC and CBS, but Fox rejected the deal.
Fox is owned by News Corp., the corporate parent of DIRECTV, EchoStar's chief satellite rival.
After Fox refused to accept the settlement, EchoStar sued the network saying it was "conspiring" to put it at a competitive disadvantage.
Unless Congress -- or a higher court -- intervenes, EchoStar will be forced to shut down the "distant" signals on December 1. Wall Street analysts have estimated that the action could cost the company millions annually in subscription fees.