1. a broadcaster may not refuse to negotiate with a multichannel video provider;
2. a broadcaster must appoint a negotiating representative with the authority to bargain;
3. a broadcaster must agree to meet at reasonable times and locations and cannot delay the course of negotiations;
4. a broadcaster may not offer a single, unilateral proposal;
5. in responding to an offer proposed by an multichannel provider, a broadcaster must provide reasons for rejecting any aspects of the offer;
6. a broadcaster is prohibited from entering into an agreement with any party conditioned upon denying retransmission consent to any multichannel video provider; and
7. a broadcaster must agree to execute a written retransmission consent agreement that sets forth the full agreement between the broadcaster and the multichannel video provider.

Under the second part of the good faith test, a multichannel provider may present facts to the FCC which, even though they are not a specific violation listed above, given the totality of the circumstances constitute a failure to negotiate in good faith. The FCC concluded that it's not possible to identify objective competitive marketplace factors that broadcasters must use in negotiating. To provide guidance, the order lists some conditions that are potential competitive marketplace considerations and some that are not. For example, the order notes that any effort to stifle competition through the negotiation process would not meet the good faith negotiation requirement. The order directs the commission staff to expedite resolution of good faith and exclusivity complaints and notes that the burden of proof is on the multichannel complainant. The order also allows parties to pursue voluntary mediation and the FCC said it will consider favorably a broadcaster's willingness to participate, but non-participation will not constitute a violation of good faith.

DirecTV Countersuit Part of Bitter Battle

DirecTV's countersuit filed against EchoStar this week may only be step two in what could end up becoming a long and bitter court battle between the two DBS rivals. The latest development in the legal skirmish, which began Feb. 1 with a lawsuit EchoStar filed against the DBS leader, has DirecTV claiming that EchoStar is abusing its trademarks and misleading consumers on the availability of NFL games. There's also allegations of tortuous interference with a contract after EchoStar reportedly announced intentions to merge with Kelly Broadcasting, DirecTV's ethnic programmer. As expected, EchoStar wouldn't comment on the counter claim, reported Wednesday by SkyREPORT. In its suit, EchoStar alleges that DirecTV and its manufacturing partners are preventing the sale of DISH Network in top national retail chains. Other claims center on DirecTV's exclusive lock on out-of-market NFL games and alleged disparaging statements directed towards DISH Network. DirecTV still maintains that EchoStar's initial suit is unjustified. "We still feel the claims in the suit are without merit," DirecTV spokesman Robert Mercer said. Part of DirecTV's counterclaims center on PrimeStar conversions. Specifically, DirecTV alleges that EchoStar is misleading and unfair when attempting to convert PrimeStar subscribers. DirecTV also claims that EchoStar is misusing the PrimeStar trademark in its conversion effort. In addition, DirecTV says EchoStar is using false and misleading advertising when promoting NFL games. DirecTV claims that EchoStar is promoting the availability of NFL games in an inappropriate manner through distant network signals. DirecTV has an exclusive lock on out-of-market football games with NFL Sunday Ticket. DirecTV also alleges that EchoStar wrongly interfered with contractual obligations through its contact with Kelly Broadcasting. Kelly is delivering non-Hispanic foreign-language programming for DirecTV. The company reportedly plans to merge with EchoStar, though specifics of a deal were not immediately known. The EchoStar suit and DirecTV countersuit are in Denver federal court.

CBO: Rural TV Help Comes With A Price

A bill that will provide up to $1.25 billion in loan guarantees for rural local TV could cost the government $265 million in costs or if there are loan defaults. According to reports, the Congressional Budget Office came up with the number as part of its study of the Local TV Signals Act, which passed the Senate Banking Committee on March 8. The Senate is expected to vote on the bill soon. The Congressional Budget Office number could become part of the debate over a similar bill in the House. Today, the House Telecommunications, Trade and Consumer Protection Subcommittee will hold a hearing on the Rural Local Broadcast Signal Act.

DirecTV Moves Into Direct Sales

DirecTV is launching a new direct sales initiative that will enable prospective customers to purchase a DBS system from the company and arrange for professional installation via phone. The one-stop service function is accessible through 1-800-DIRECTV beginning this week. The direct sales feature will include a full line of DirecTV products, and customers who utilize the channel will have access to the same national promotions. Fulfillment will be handled by DirecTV Home Services, a network of professional installers and providers. A telemarketing and fulfillment vendor under contract with the DBS provider will handle direct sales phone calls. Once installation and account activation is completed for new customers, account activity will be maintained by the existing customer service system.

SkyFORUM Special Ends Friday

Friday is the last day to take advantage of reduced rates for this spring's SkyFORUM symposium in New York City. The 13th semi-annual SkyFORUM satellite/financial forum will be held Tuesday, March 28, at the Marriott Marquis in mid-town Manhattan. Pre-registration for the event ends March 17. After that date, registration fees increase from $695 to $850 for general attendees and from $595 to $750 for SkyTRENDS partners. Registrations will continue to be accepted until the day of the event. For more information or to register, please visit www.sbca.com or contact Rachel Zink at 703-549-6990, ext. 363.

INTERNATIONAL: Philips Gets Dutch Contract

• Philips Gets Dutch Contract - Philips Digital Networks has signed an order with the Dutch broadcasting company NOB to supply the technical infrastructure for the broadcast of all matches at the forthcoming EURO 2000T soccer championships. The signing of the order is part of Philips' sponsorship of EURO2000.
• News Corp. Eyes India Work - According to Reuters, News Corp. plans to invest hundreds of millions of dollars in India to boost satellite-delivered TV offerings and new interactive technology. News Corp.'s Star TV operates six satellite channels in India that offer news, entertainment and sports. Those services are in English and Hindi, but News Corp. Chairman Rupert Murdoch said Star TV would like to deliver programming in six main Indian languages.
• INTELSAT Orders Satellite - INTELSAT's board of directors approved the purchase of an additional spacecraft from Matra Marconi Space. The original contract awarded in January contained an option for the purchase of a second spacecraft. The new satellite will be assigned to 359 degrees and will serve the Americas, Europe and Africa.