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All is not well with the proposed merger of satellite broadcasters EchoStar and DirecTV, currently being reviewed by Federal regulators.

Stan Kozlowski, chairman of the Satellite Broadcasting and Communications Association (SBCA), resigned Friday, December 21, voicing strong objections to the trade group's endorsement of the EchoStar-DirecTV deal. Kozlowski, who is also an executive with the National Rural Telecommunications Cooperative, complained that "the SBCA is charged with representing all segments of the satellite industry, not just two of its largest members."

Shortly after his resignation, the organization voted to endorse the merger, claiming the move would help local TV stations reach wider markets and deploy broadband services, including high definition TV and high-speed Internet access to rural areas. Kozlowski stated that he felt obligated to resign in anticipation of the vote. "I believe that the SBCA is breaking its precedent of not taking positions on private business matters," he explained.

Just two days before the SBCA's endorsement of the deal, the National Association of Broadcasters (NAB) weighed in against it, releasing the results of a survey claiming that an "overwhelming" majority of the TV-viewing public opposes the merger.

A trade group representing television and radio stations, the NAB funded a survey conducted by Luntz Research Companies in late November, in which interviewers spoke on the telephone with 1000 adults selected at random to determine their feelings about the merger. Almost 71% of those interviewed said they agreed with the statement: "Television providers are too important to allow the elimination of competition. The federal government should not allow the only two satellite television companies to merge into just one."

Pollster Frank Luntz said the results showed greater unanimity than almost any other issue that Congress has faced. "This is as big a consumer issue as I have ever seen, and one that knows no party lines," he stated. "I have polled on almost every issue facing Congress. Other than support for Social Security, I have not seen such unanimous opinions on anything."

EchoStar chief Charlie Ergen and his lobbyists are trying mightily to put the happiest possible spin on the merger, claiming that the resulting company—which, with 16 million subscribers, would be one of North America's biggest television providers—would offer a "true alternative" to cable. NAB president and CEO Edward O. Fritts sees the situation differently, claiming the merger will eliminate choice for many consumers. "Consumers are clearly worried that the merger of the nation’s only two satellite television providers will negatively impact the choices available to them," he said. "However the antitrust lawyers choose to define the market, an overwhelming majority of consumers believe that the creation of a single satellite TV service will leave them with no choice at all."

Interestingly, the NAB has not opposed consolidation in the cable industry, such as the proposed acquisition of AT&T's cable service by Comcast. The AT&T-Comcast merger is also under review in Washington.