DirecTV-EchoStar Merger?

DIRECTV-ECHOSTAR MERGER?
[SOURCE: TheDeal.com, AUTHOR: Matthew Wurtzel]
[Commentary] DirecTV Group and EchoStar Communications have formed a venture called Wireless DBS reportedly to bid about $1 billion for spectrum. Both are seeking the highly sought after prize to remain competitive with rival cablers and the Bells, who are beginning to roll out TV service. Satellite TV service is a one-way technology preventing the two companies from branching out into broadband Internet or voice communications giving both the cablers and Bells an upper hand. The detente between the two rivals could lead to future discussion of a possible merger. Unlike the last attempt that was thwarted by antitrust concerns, another merger could breeze through the approval process assuming regulators consider the Bells' new TV service as rivals to satellite TV. Obviously, if new subscriptions are already slowing because of cable's phone service push, then the two companies may have a potent new argument to support a merger -- especially if they win enough wireless licenses to offer voice and broadband. Besides, agreeing to merge after winning wireless licenses would mitigate the problem of divvying up the licenses.
http://dealbook.blogs.nytimes.com/?p=6264
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