In comments filed Tuesday with Federal Communications Commission, EchoStar said giving Rupert Murdoch's group control of DirecTV "poses a threat to the American consumer."

EchoStar said News Corp. would have the potential to abuse its position as both a producer of programs through its Fox entertainment unit and a distributor through the satellite TV unit.

"By acquiring its crown jewel of nationwide US distribution for its core programming assets, News Corp. will have the ability and incentive to force cable firms and EchoStar to accept higher programming fees, which, in turn, would result in higher cable and DBS (direct broadcast satellite) prices and harm to consumer welfare," EchoStar said.

News Corp., a sprawling media-entertainment conglomerate, has struck a 6.6 billion dollar deal for a 34 percent stake in Hughes Electronics, a division of General Motors which operates DirecTV.

EchoStar's opposition was expected. In 2001, News Corp. dropped out of negotiations to acquire Hughes once EchoStar came in with a higher bid. But late last year, EchoStar was forced to dump its own 19 billion dollar acquisition of Hughes, when regulators sought to oppose the deal of the two main operators of satellite broadcasting.

DirecTV remains the top US satellite broadcaster with 11 million subscribers, while EchoStar, with 8.2 million, is second.

Murdoch, who was to appear before a congressional hearing Wednesday on the deal, has argued the merger will make DirecTV a more formidable competitor to cable.

SPACE.WIRE