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EchoStar Communications Corporation and Hughes Electronics Corporation, parent company of DirecTV, are still hopeful of a merger, despite regulatory opposition. The two would-be partners are working on concessions that could win over officials at the Federal Communications Commission and the US Justice Department.

"We are . . . continuing to work aggressively to achieve approval of our merger with EchoStar," Hughes Electronics CEO Jack A. Shaw wrote in the Wall Street Journal October 22. Littleton, CO–based EchoStar and El Suguno, CA–based Hughes have revised the specifics of their proposed merger, recently rejected by the FCC on the grounds that it would eliminate choice for millions of rural residents who rely on satellite services for television reception.

The concessions include changes to "both satellite-broadcast spectrum and distribution arrangements," and would provide "an opportunity for new competitors to enter the US satellite-television business," reports stated. EchoStar and DirecTV hope to specify ways that they could enable new entrants into the North American satellite television business, a market that they now totally dominate, with satellite subscribers divided between them on a 1:2 ratio, respectively.

The FCC has described the current balance between the two as a "very healthy level of competition." If the merger were approved, it would create, the agency claimed, an "enormous barrier" to new competitors.

Shaw made it clear that moves under consideration do not include "potential regional collaboration or outright merger with News Corporation's Latin American broadcasting interests." He said such allegations were "taken out of context . . . at this time there are no discussions or negotiations regarding a merger or sale of DirecTV Latin America." He said his company is "working hard on a solid action plan that we believe will stem the losses of this business and position it for growth and success in the future."