Panel Pushes Conditions for EchoStar Merger

EchoStar Communications Corp. should be forced to offer uniform prices, new services and all local TV channels to buy the parent of rival satellite broadcaster DirecTV, U.S. senators said.

Regulators reviewing the proposed $33.6-billion merger of EchoStar and Hughes Electronics Corp. should make the conditions legally binding or name a special overseer of a combined firm, Sen. Herbert Kohl (D-Wis.) said at a Senate judiciary subcommittee hearing.

EchoStar, owner of the Dish satellite network, says buying larger rival Hughes from General Motors Corp. will create a strong competitor to cable companies. The companies have promised to charge one national price, provide all local TV stations and sell high-speed Internet access to more communities.

Under questioning by senators, DirecTV Chief Executive Eddy W. Hartenstein and EchoStar CEO Charles W. Ergen said the firms would be willing to sign an agreement to provide the prices and services, including high-definition television and interactive TV, without charging for new equipment.

EchoStar shares rose 60 cents to $27.41 on Nasdaq. GM climbed $1.31 to $59.92 on the New York Stock Exchange.