Credit Suisse First Boston last week committed $2.75 billion in financing to EchoStar Communications, giving EchoStar the remainder of the $5.5 billion in cash it sought to fund a portion of its merger with Hughes Electronics.

The announcement, which had been expected, frees up EchoStar and its chairman and CEO, Charlie Ergen, to fight the regulatory battle that looms over the proposed acquisition of Hughes and its DirecTV subsidiary. The news also bolstered investors' confidence ? shares of EchoStar traded Friday afternoon at $25.04, regaining last week the 10% that had been shed in the days following the merger announcement.

Deutsche Banc AG has committed the other $2.75 billion of the total $5.5 billion sought. The financing from Credit Suisse replaces temporary bridge financing in the same amount from General Motors, which owns a big stake in Hughes. General Motors stepped in with a bridge loan until Ergen could secure additional financing after a funding deal with UBS Warburg fell through at the last minute.

The $25.6 billion cash and stock deal was announced Oct. 26. If it goes through, EchoStar would become the largest provider of multichannel programming in the country, as long as AT&T Broadband, with almost 14 million subscribers, isn't sold to a suitor before EchoStar can close its deal.

On Nov. 1, the FCC established an intra-agency team led by Kenneth Ferree, head of the FCC's Cable Services Bureau, to review whether the proposed merger is in the public interest. The companies also need the approval of the U.S. Justice Department, which will examine antitrust considerations.

There are three main issues that the FCC will focus on in its decision-making process. First, the combination will reduce multichannel competition to two companies from three in some markets. Additionally, in many rural markets where cable is not widely available, competition for pay TV would be reduced to one provider from two. Lastly, a merged EchoStar-DirecTV would control virtually all of the country's direct broadcast satellite slots.

?We're talking about all of the prime DBS slots being held by the same entity. That is a concern,? said Ferree at a press conference last week.

Ergen wants the agencies to consider the entire pay-TV universe in its assessment. He has also indicated that EchoStar would agree to cap prices in rural areas.

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