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National Grange Influences
FCC Decision to Block Merger That Ensures Consumer Choice For Rural America Washington,
DC- The defeat of the proposed merger between Hughes Electronics Corp. and
EchoStar Communications Corp. is a major victory for the National Grange's over 200,000 members and for all rural consumers. The Federal Communications Commission
(FCC) unanimously voted 4-0 against this merger, which would have combined the
two major Direct Broadcast Satellite (DBS) service providers into a single monopoly.
"Without competition, rural Americans would be faced with higher prices, reduced
services and less choice in programming which in effect gives rural Americans
the message of "take it or leave it" in terms of DBS service," said Leroy Watson,
director legislative affairs of the National Grange. This
issue was of particular interest to rural America because it lacks access to cable
TV services. Cable TV providers typically limit their services to the more lucrative
urban and suburban markets while rural consumers are limited to Satellite TV services.
A merger would have put rural Americans at a greater disadvantage by reducing
their options. FCC
chairman Michael Powell was in agreement when he said, "The case against approving
the transfer application is particularly compelling with respect to residents
of rural America who are not served by any cable operator. Those Americans would
be left with only one choice for their subscription video service, now and in
the foreseeable future."
The National Grange is the nation's oldest general agricultural and rural advocacy
organization, founded in 1867. It has grassroots units in 3,600 local communities
in 37 states, with over 200,000 members. It serves farm and non-farm, rural
families and communities on a wide variety of economic, educational, legislative
and family issues. | 
