Local broadcasters are trying to block EchoStar Communications’ last-ditch efforts to offer relief for 900,000 customers who have lost or will lose distant-network signals on the Dish Network.
The broadcasters have filed a motion to block a deal EchoStar recently struck with National Programming Services LLC, an Indianapolis-based provider of C-band or big-dish satellite services, to deliver local TV signals to its out-of-market customers.
Today is the deadline for EchoStar, a Douglas County-based satellite provider, to shut off distant-network signals to its customers, after a U.S. district court in October ordered the shutoff.
The ruling was the culmination of a seven-year court battle with affiliate ABC, NBC and CBS stations and 25 stations owned by Fox.
“EchoStar demonstrates again its arrogant and flagrant contempt for the rule of law,” said Dennis Wharton, a a National Association of Broadcasters spokesman. “We’re hopeful the courts recognize this latest stunt for what it is: a serial copyright abuser’s refusal to comply with numerous court verdicts and federal statutes that preserve the enduring value of local broadcasting.”
EchoStar general counsel David Moskowitz said Thursday that National Programming Services will lease a transponder, or a portion of a satellite, from EchoStar to provide distant-network stations. Customers must order the service directly from NPS and are billed separately.
“We asked the court to confirm that the arrangement with NPS is entirely appropriate,” he said. “We’re confident it’s permitted by law.”
NPS approached the nation’s second-largest satellite-TV provider a few months ago, but EchoStar wasn’t interested because it was focused on a $100 million settlement with broadcasters and lobbying for legislation that would save distant-network signals, Moskowitz said.
The court didn’t approve the settlement, however, and Congress isn’t immediately expected to consider two bills regarding distant networks. EchoStar said it will meet today’s deadline to turn off all distant-network signals.
“Our other legal avenues are pretty much exhausted,” said Moskowitz. “At this point, we are getting out of the distant-networks business.”
He said EchoStar faced an uphill battle because News Corp., the owner of Fox, and EchoStar’s larger competitor, DirecTV, are working to scuttle any congressional action.
EchoStar’s distant-network service brought in about $3 million a month in revenue. The company’s stock dropped 7 cents Thursday to $36.01.
Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
