from skyreport.com
Dolan Takes VOOM Battle to FCC
Cablevision Chairman Charles Dolan, who wants to take over the VOOM satellite TV service from the company, sent a petition to the Federal Communications Commission earlier this week asking the agency to deny EchoStar's proposed $200 million acquisition of certain VOOM assets.
The joint petition was submitted by VOOM HD LLC, the entity Dolan set up to take over VOOM, and The Association of Consumers to Preserve and Promote DBS Competition. The FCC docket said the filing was submitted on behalf of Dolan, who has been at odds with the company concerning the future of VOOM.
The filing said VOOM HD is in the process of obtaining financial commitments from its controlling investors amounting to $400 million in cash and credit, and it stands "ready, willing, and able to compete for the purchase of the Rainbow DBS transponders located at 61.5 degrees should they once again become available in the market."
As for the EchoStar/Cablevision deal, the petition said the proposed transaction would conflict with an FCC policy of fostering competition and the new entry of DBS service providers. The filing also took aim at EchoStar's proposed acquisition of 11 additional transponders at the DBS orbital slot, and asked whether the deal would serve the public interest.
"By eliminating one of only three facilities-based providers of DBS service to U.S. consumers, the proposed transaction would result in the loss of the highly unique DBS service VOOM offers to its approximately 40,000 subscribers," the petition said. "The proposed transaction thus indisputably conflicts with the agency's stated policy of promoting competition in the DBS marketplace."
In January, EchoStar and Cablevision entered into an agreement in which the cable operator agreed to sell a satellite and other DBS-related assets to EchoStar for $200 million. In a statement released late Tuesday, EchoStar said: "We're perplexed that a member of the Cablevision board of directors would now file an objection after the remainder of the board had already voted to sell the Rainbow satellite. Nonetheless, we remain committed to completing the deal and using the spectrum to help us compete in a growing pay TV marketplace."
Following the EchoStar/Cablevision deal, Dolan established VOOM HD LLC to take over any remaining assets of the struggling satellite TV service. Dolan also pressured Cablevision to stop its plans to shut down VOOM at the end of the month.
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