Broadcasters Ask FCC To Hold Up AT&T/DirecTV Over Retrans Dispute

Broadcasting, Bristlecone Broadcasting,Broadcasting Licenses, Eagle Creek Broadcasting of Laredo, Ltd., Mountain Licenses, Northwest Broadcasting and Stainless Broadcasting objected to FCC approval of AT&T/DirecTV and asked that the transaction be held in abeyance while the agency reviews the group's emergency complaint (see 1506120021). "The Complaint provides a compelling real world example of DIRECTV’s failure to negotiate retransmission consent for the carriage of broadcast stations’ signals in good faith as mandated by Congress and the Commission," the broadcast group said. "The Complaint focuses on matters of direct relevance to the Commission’s review of the Applications, including issues of both substance (whether DIRECTV uses its size to secure below-market retransmission consent rates from broadcasters, especially small broadcasters) and process (whether DIRECTV conceals relevant marketplace facts during negotiations). ... FCC approval of the Applicants’ proposed combination would substantially exacerbate, in a manner that contravenes the public interest, the inequities and imbalances which already tilt the retransmission consent playing field too strongly in favor of DIRECTV. DIRECTV is a massive incumbent [multichannel video programming distributor] and should not be permitted to merge with another giant MVPD, AT&T, particularly given the latter’s status and dominant market power as one of the two largest entrenched wireless incumbents in this country." The FCC's nonbinding 180-day "shot clock" for the AT&T/DirecTV review has been stopped on Day 170 since March 13 for unrelated reasons. AT&T and DirecTV representatives didn't respond to our queries.