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 Edited by Mary Lou Seymour. To subscribe or unsubscribe to this and
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First Week of June, 2002:  Merger versus divide

Remember the "digital divide?" The lefty statist politicos and their
cronies have been pushing it as the civil liberties issue of the
century. Jesse Jackson called it "classic apartheid," the NAACP's
Kweisi Mfume dubbed it "technological segregation," and President
Clinton urged a "national crusade." All with the view, presumably,
of setting up government programs to help "disadvantaged" people
access the Internet, and, incidentally of course, creating lots of
plush bureaucratic jobs for their political friends.

Many of us were skeptical of this "digital divide" all along,
and a March report from the Pacific Research Institute quotes the
Department of Commerce to show we were right: "In 2001, 25 percent of
lower income people were online, and if things continue at this rate,
it won't be long before virtually everyone who wants to connect can."

However, while the politicians and the researchers have been hashing
out whether a problem exists or not, the free market has moved
briskly along and created the "solution" to the digital divide: the
merger of Echostar and DirecTV, which would deliver local broadcast
channels to all 210 U.S. television markets and affordable broadband
satellite Internet service across the country. This would obviously
not only be a good deal for all consumers -- it would end, once and
for all, the "digital divide" as a pork barrel issue and prevent
the formation of any new government programs to help "bridge the
digital divide."

Of course, since this is happening in America, the "land of the
free," these companies have to get permission from the government
and "prove" this merger isn't "anti-competitive;" and they need help
to convince the goverment to let the free market work. So, for this
week's action, let's bring our opinion to bear by participating in
the public dialogue.

EchoStar has set up a web site to explain the merger to shareholders
and the public, which gives lots of info about the merger, including
copies of letters from various companies and organizations in
support of the merger, from Circuit City to the League of United
Latin American Citizens to the National Center for Public Policy
Research. For a free market viewpoint, see especially the National
Center for Public Policy Research letter: "[we] feel strongly
that the dynamics of a free market and not government programs
represent the best opportunity for minority people to make full
use of broadband technology. By providing broad based satellite
technology to all areas of America at one uniform price, the
post-merger company will add significantly to the free market
options for obtaining broadband services."

Cool!

Writing a letter: The Echostar site has a nifty "form" that helps
you write a letter; there's a form with a sample letter for a
"customer" and one for a  "retailer" which you can use as is
or edit.  After completing your online letter, and clicking on
submit, your letter is sent to your Senators and Congresscritter
(you can de-select any you don't want), as well as FCC Chairman
Michael Powell. (See the "Take Action" link at the EchoStar site.)

I was going to suggest that you not only send in an email, but also
a hard copy letter to make sure your letter actually gets "counted,"
but EchoStar is pretty shrewd ... the form letter also notes that
"Unfortunately, not all elected officials read their email. For
this reason, a copy of your correspondence is going to EchoStar. If
necessary, we will be able to mail or fax a copy to the addressee."

But it's never a bad idea to snail mail your letter, particularly if
you're the owner of a business or the head of an organization and can
put your opinions on stationery with an impressive letterhead. Who
knows, if you snail mail it and FAX a copy to EchoStar, they may
post it on their site with the others ... good publicity for your
business/organization, and free!

The Department of Justice covers antitrust law, as in the Microsoft
case. But they don't just sue when they think a company is engaging
in "anti-competitive" practices -- they also get to chime in with
their approval when big mergers like this take place. So, also send
a letter to:

The Honorable John Ashcroft Attorney General Department of Justice
950 Pennsylvania Avenue, N.W.  Washington, D.C. 20530

I'm always on the look out for action issues that can be used
to bridge another divide -- the one between us and the social
libertarians on the left that just can't grasp how economic
libertarianism would "help" the disadvantaged -- and this one
is right on target. So send the EchoStar link to all your "lefty"
friends (or post it on a "lefty" email forum) and give them a gentle
shove in the libertarian direction!

Til next week...  For freedom!

Mary Lou

Pacific Research Institute -- What digital divide?
http://www.free-market.net/rd/699870238.html

EchoStar Merger Site: http://www.free-market.net/rd/702250545.html

Action of the Week archive:
http://www.free-market.net/features/list-archives/activism/maillist.html







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