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 Post Posted: Thu Dec 02, 2010 10:54 pm 
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SkyBOX: Another DISH Shutdown

Once upon a time (actually several times), I heard DISH founder Charlie Ergen refer to his legal department as "a profit center." That was clearly a point of pride. But pride, the old adage tells us, comes before a fall and, once again, DISH is treading in murky legal waters.

The occasion this time is an FCC decision on an arbitration issue initiated by DISH concerning its negotiations for Comcast's SportsNet California. Last week, the FCC ruled against DISH, saying that terms offered by the SportsNet reflect fair market value. Understandably, DISH disagrees with that. Less understandably, DISH responded by shutting down the California sports net, telling viewers that "DISH Network has been unable to reach a fair agreement ...."

Comcast promptly asked the FCC to suspend arbitration hearings involving DISH and three other of its RSNs, under the theory that, if DISH doesn't like the decisions in those cases, it might shut down those networks as well.

In a message to its California subscribers, Comcast says, "DISH Network has taken away Sharks and Kings coverage from local fans by dropping Comcast SportsNet. Why did they do this? We don’t know. DISH says they are negotiating with us, but the fact is that we have a binding agreement with DISH Network and DISH Network has decided they can ignore it."

Comcast wants to meet "at your earliest possible convenience" with the FCC. I bet the FCC wants to hold some meetings of its own.

In short, that whirring you hear is the sound of legal knives being sharpened. It's not the first time ... or the only time ... or, I'm quite sure, the last time. Thus far DISH has been very clever – and yes, often profitable – in its legal maneuverings. Thus far.

SkyREPORT


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