Feds OK DirecTV's acquisition of USSB

Merger expected to boost competish

By CHRISTOPHER STERN

WASHINGTON -- DirecTV customers who subscribe to HBO, Cinemax and Viacom channels including MTV and VH1 will soon get only one bill now that the FCC has signed off on the satcaster's $1.25 billion acquisition of USSB.

Pending regulatory approval, DirecTV acquired USSB last year in an effort to bolster its No. 1 position in the satcasting marketplace. DirecTV currently operates about 185 channels; through the purchase of USSB and other satcasting outlets, it's on its way toward a 385-channel system.

Feds say merger will boost competition

Although DirecTV dominates domestic satellite sports distribution and has rights to most cable programming, it needed USSB to fill out its channel lineup with HBO, Cinemax and Viacom programming.

FCC Chairman William Kennard issued a statement Friday praising the merger, which he said will help boost competition to cable.

"This acquisition serves the public interest by promoting competition and giving consumers more choices in video programming," Kennard said. The FCC is looking for ways to keep the competitive pressure on cable, especially now that cable rates have been deregulated.