District needs more competition for Comcast

The Jan. 16 Business story “Comcast increasing D.C.-area rates” is an indication of another reason why the Justice Department and Federal Communications Commission (FCC) should quickly approve the pending merger of EchoStar and DirecTV.

This merger will free up valuable spectrum space so that the new entity will be able to offer more channels at a cost that is comparable to, or better than, that of cable television.

As of Jan. 1, federal law requires satellite providers to carry all of the local broadcast stations in a market if they choose to carry any. This means that if DirecTV wishes to offer the local network affiliates in Washington, for example, it must carry all local stations.

With the satellite merger, duplicate TV spectrum can be put to new uses, including broadband and high-definition television. This benefits consumers, especially those in rural and inner-city areas where access is limited.

A single satellite firm could use the cost savings from the merger to invest in new technology to better serve this market.

Whatever the FCC and the Justice Department decide, one thing is certain: The merger review will be contentious, lengthy and expensive.

Both agencies should recognize the economic costs of a long and acrimonious review and minimize them by expeditiously approving this merger.

JASON THOMAS

Economic policy analyst

Citizens for a Sound Economy

Washington