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March 4, 2002 Mr.
Fred Hiatt
Opinion and Editorial Page Editor
The Washington Post
1150 15th St NW
Washington, DC 20071-0002 Dear
Mr. Hiatt:
I read with great concern the recent letter sent by Jason Thomas, a policy analyst
at Citizens for a Sound Economy, in which he claims the proposed merger between
DirecTV and EchoStar would actually benefit rural America. This
merger will clearly result in a significant decrease competition in the satellite
services industry. It will lead to higher prices and decreased service. It will
allow one nationwide monpoly to control the delivery of, and possibly the content
of, new telecommunications services to tens of millions of people living in rural
areas who currently lack access to cable TV or other high-speed Internet connections.
I cannot
recall any examples in economic history where a reduction in competition and the
creation of an unregulated private monopoly has led to lower prices and more innovation
for consumers. Without a competitor to continually raise the bar, why would EchoStar,
or any other company in its position, expend resources to develop new and innovative
technologies for their customers? If this merger was not going to substantially
reduce competition in the satellite services industry, why would EchoStar feel
the need to propose a new form of federal price controls for its services as a
condition for approving the merger? Honest competition in the market place is
far more valuable to rural consumers than the promises of future price controls
that may be offered by corporate executives. Other
respected voices have also raised strong concern that rural consumers could suffer
higher prices, fewer choices and reduced service if this merger is approved. Many
Members of Congress affiliated with both the Congressional Rural and Congressional
Western Caucuses have signed joint letters to the Department of Justice and the
Federal Communications Commission voicing this concern. These statements add to
the growing chorus of apprehension about the merger that has been expressed by
more than 30 state attorneys General. Citizens
for a Sound Economy has a proud history of urging that the competitive forces
of the marketplace be allowed to function and provide the greatest benefit to
consumers. Its time we follow that sound advice and quickly reject this anti-competitive
merger. Sincerely,
Leroy Watson Legislative Director
The National Grange Note:
The National Grange is this nation's oldest general farm and rural public interest
organization. It represents over 200,000 members affiliated with 3,200
local, county and state Grange chapters in 36 states across the nation. | 
