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Big Dismal
08-25-2006, 08:55 AM
Source:

http://www.madison.com/tct/business/index.php?ntid=96170&ntpid=0

There will be virtually no impact here from a court ruling that bars EchoStar Communications Corp.'s DISH Network satellite TV service from sending the signals of local broadcast TV stations to customers outside those local markets, the company said.


EchoStar's emergency appeal was rejected on Tuesday by Supreme Court Justice Clarence Thomas, who handled the petition on a case out of the Atlanta-based 11th U.S. Circuit Court of Appeals. EchoStar had filed the emergency appeal to avoid having an injunction take effect until after the Supreme Court decides whether to hear the company's appeal of the overall case.

The so-called "distant signal" service prohibition will impact DISH customers in rural areas that do not have local stations. DISH has been sending network shows to its customers in those areas from network affiliates in distant cities such as New York. The company said less than 1 million customers were impacted; various media reports have put the number at about 800,000.

DISH customers in the Madison area have been offered local channels such as WISC-TV/Channel 3, WKOW-TV/Channel 27, NBC 15 and FOX 47 since November 2003 for an extra cost of $5.99 per month.

Those customers are not impacted by the ruling, DISH spokeswoman Heather Black said in a phone interview today.

Black said there are some customers in the Madison area who applied for and were granted waivers enabling them to get their network programming from distant local affiliates.

"Somebody maybe wanted New York local (channels)," Black said.

However, those customers can switch to the Madison stations to replace the distant signals.

The order does not affect customers of DirecTV, the other major satellite provider, because DirecTV has reached agreements enabling it to carry copyrighted network shows via distant signals. (DirecTV began offering Madison stations to area customers in early 2004.)

EchoStar has reached settlement agreements with ABC, NBC, CBS and other station groups but hasn't been able to work out agreements with others, including Fox, which is owned by News Corp., the conglomerate that also controls DirecTV. EchoStar said negotiations continue to reach those agreements.

EchoStar spokeswoman Kathie Gonzalez said Tuesday's decision was not unexpected since the Supreme Court grants stays in only a very small percentage of cases it reviews. Meanwhile, the company "continues to explore every possible option available to avoid unnecessary disruption to our customers who watch distant network channels," Gonzalez said.

EchoStar said it must file its appeal of the overall case with the Supreme Court by Oct. 17, which means the justices wouldn't act on the appeal until the late fall.

The loss of 800,000 rural subscribers, about 6 percent of EchoStar's 12.5 million customers, could cost the company several million dollars in revenues, analysts said.