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EchoStar to FCC: Reject Liberty-DirecTV deal

Published March 27, 2007 at midnight

Liberty Media's proposed purchase of a majority stake in satellite-TV provider DirecTV raises "serious public interest concerns" and should receive close scrutiny, rival EchoStar warned.

EchoStar, operator of the Dish Network, on Friday told the Federal Communications Commission to reject Liberty Media's proposed $11 billion asset swap for News Corp.'s 39 percent DirecTV stake unless there are safeguards to "ensure that consumers and the programming market are not adversely affected."

EchoStar joined the National Cable Television Cooperative and the American Cable Association in filing comments with the FCC on the proposed transaction by Friday's deadline. EchoStar's objections come even as it is in discussions with Douglas County neighbor Liberty Media over issues such as how to offer high-speed Internet via satellite- TV technology.

Liberty Media spokesman John Orr didn't immediately return a call for comment. Responses from Liberty and News Corp. are due to the FCC by April 9.

In the filing, EchoStar claimed the transaction would let Liberty rejoin the ranks of major media conglomerates that can dictate the terms and conditions of programming - behavior that EchoStar says Liberty engaged in when it ran cable company Tele-Communications Inc.

Liberty's programming assets include premium movie network Starz, as well as stakes in GSN and Discovery Networks. It also will acquire three regional sports channels, including FSN Rocky Mountain, as part of the News Corp. deal.

John Malone's Liberty also reportedly is in talks to buy additional programming properties, including CableVision's Rainbow Media, EchoStar noted.

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