October 14, 2002

WASHINGTON, DC - Given the public interest at stake, the Federal Communications Commission (FCC) did far too little to consider the many important benefits that could result from a merger of EchoStar and DirecTV, most notably, the universal access of high-speed Internet, the chairman of the Small Business Survival Committee (SBSC) said today.  The FCC came out with a strongly-worded rejection of the important merger at a noon press conference.  

"This decision was a mistake, and will hurt small businesses throughout the country," said Karen Kerrigan, Chairman of SBSC.  "Small businesses, particularly those in rural areas, are desperate for high-speed Internet access and more alternatives in service.  With the offer of nation-wide, affordable high-speed Internet access on the table, the FCC plainly ignored the needs of small business and the entrepreneurial sector."  

In a letter written to Powell the day before, SBSC said, "On behalf of the seventy thousand member companies of the Small Business Survival Committee (SBSC), I am writing to request that the Federal Communications Commission (FCC) not act precipitously in the matter of the EchoStar/DirecTV Merger," Kerrigan wrote.  "Given the benefits this merger offers to small businesses across the country, we hope the commission will take its time to work with the two companies on merger conditions that satisfy competitiveness concerns."

Kerrigan commented, "Yesterday we urged the commission to explore the possibilities for compromise thoroughly, and today we find that they have ignored that call.  The FCC has swallowed the arguments of the merger's vocal opponents, many of whom have dramatically selfish interests in speaking out."

Kerrigan stated that she disagrees with the notion that the merger would create a monopoly, since the combined entity would still only control about 18 percent of the pay-TV marketplace.  Cable TV would still reach 80 percent of consumers, even after the merger, Kerrigan said.

"As a business leader, I firmly believe and support America's free-market system.  The best solutions come about when there is strong competition in the marketplace.  But the FCC is dead wrong - rejecting this merger is not the best way to preserve competition.  More Internet options for Americans would lead to more competition in that market, and more benefits for entrepreneurs and small businesses across the country.  I hope the FCC finds a way to fix what it's done."