EchoStar lines up lobbyists as DirecTV <BR>anti-trust inquiry kicks off

NEW YORK - The regulatory battle about EchoStar Communications' £18bn takeover of DirecTV will begin in earnest today, as EchoStar chief executive Charles Ergen is set to appear at anti-trust congressional hearings in Washington DC.

Opposition to the deal, on the grounds that it will restrict the choice of pay-TV platforms for people living in rural areas of the US, is reportedly mounting. Undeterred, EchoStar and DirecTV are embarking on an extensive lobbying campaign, hiring a number of Washington powerbrokers, including former Clinton deputy chief of staff Steve Ricchetti, to put forward its case.



A number of senators are known to oppose the deal, and rival companies, including News Corporation and Pegasus Communications, will be putting forward arguments against the takeover.



However, EchoStar has already overcome several hurdles in its bid for DirecTV, including beating off a much bigger rival -- Rupert Murdoch's News Corp -- in the bidding and then raising the funds to do the deal.



The deal has won some industry support. Earlier this month, AOL Time Warner's Gerald Levin and Vivendi Universal's Jean-Marie Messier agreed that competition in the US pay-TV market would not diminish if EchoStar took over DirecTV.



If the two companies are allowed to go ahead with the deal, it will create a satellite broadcaster with 16.7m customers.



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