Distant Signals Battle Doesn't End With Miami Court Ruling

BY K. C. NEEL

Both EchoStar Communications Corp. and broadcasters claimed victory last week after a Miami judge ruled the DBS provider cannot grandfather existing customers who receive distant broadcast signals and also reaffirmed EchoStar's current methods for qualifying customers who can receive distant signals.

EchoStar, which has been fighting over the distant signals issue since 1998, said it was pleased U.S. District Court Judge William P. Dimitrouleas reaffirmed the company's qualification methods but will appeal his decision to prohibit the grandfathering of existing customers. The company must also re-qualify each customer that currently receives distant signals. EchoStar has asked for an injunction while it appeals the ruling, so no customers will be immediately shut off. If EchoStar eventually loses the grandfathering issue, it could affect up to 10% of its customer base of over 8 million customers, according to the company.

The Satellite Home Viewer Improvement Act of 1999 specifically allows DBS providers to deliver local broadcast signals into the same market and also permits those companies to continue delivering distant signals to those customers who received those signals prior to the law being passed.

?This has been a long and hard-fought legal case that attempts to balance the rights of broadcasters and consumers,? Ergen said in a prepared statement. ?We look toward moving forward with broadcasters by continuing to add local cities and to make sure that all sides honor the Satellite Home Viewer Improvement Act of 1999.?

Broadcasters were also calling the ruling a victory. ?Today's ruling by the federal court in Florida is an important victory for free, local, over-the-air television ? and the viewers across the country who depend on it,? said National Association of Broadcasters president Eddie Fritts in a prepared statement. ?The court found that EchoStar is illegally transmitting distant ABC, CBS, Fox and NBC stations to hundreds of thousands of ineligible subscribers? With this ruling, EchoStar's years of copyright violations will finally come to an end.?