Consumer Project on Technology P.O. Box 19367, Washington, DC 20036 (202) 387-8030; http://www.essential.org/cpt _________________________________________________ August 2, 1996 Via Fax Mr. Donald Gips Chief, International Division Federal Communications Commission 2000 M Street, NW Washington, DC 20554 Re: Merger of EchoStar and DBSC Dear Mr. Gips: I am writing to you regarding the request by DBSC and EchoStar to merge. In its July 19, 1996 letter to you, EchoStar requested that its merger be approved one week later on July 26, 1996. EchoStar stated that it had made financial arrangements and other commitments in anticipation of a favorable outcome by the FCC. I urge you not to succumb to such inappropriate pressure. If EchoStar and DBSC have irretrievably committed resources to accommodate an as yet to be approved transaction, that is simply too bad. In these circumstances it is inexcusable for them to make assertions that they have counted upon the prospective deal receiving FCC approval when antitrust concerns are so obviously at issue and approval is clearly not a foregone conclusion. EchoStar's predatory practices in the DBS arena - in which they buy out prospective competitors - are also a matter that should be carefully considered by the FCC. These practices have serious ramifications for the American public. EchoStar's seemingly endless appetite for scarce DBS resources (recall the previous merger with another competitor-Directsat) has far reaching consequences by eliminating other possible media outlets (See Appendix A). DBS providers thoroughly control the content of programming. However, having many social, cultural, and political viewpoints represented - whether in the content of programming or commercials - by as many outlets as possible is crucial to the preservation of truly useful First Amendment rights. The fewer DBS operators, the less well served is the U.S. In addition to concerns over fewer potential media outlets, EchoStar's merger also reduces the possibility that real DBS competition will develop with better pricing for consumers because EchoStar will - again - be reducing the number of DBS competitors. I urge you to reject EchoStar's request that its merger be approved on an expedited basis. There are important consumer, public interest, and First Amendment values that will be degraded if the merger is approved. EchoStar's position will be improved by buying off yet another potential competitor at the expense of American consumers. We respectfully request that this proceeding at the very least not be given short shrift. When the antitrust and First Amendment issues are considered it is clear that EchoStar's merger must be denied as against the public interest. Sincerely, /s/Todd J. Paglia Appendix A