(as filed) IBFS - DI

REPLY submitted by DISH Network Corporation

DISH Network Corporation Reply

2019-04-12

This document pretains to SES-T/C-20190214-00116 for Transfer of Control on a Satellite Earth Station filing.

IBFS_SESTC2019021400116_1652144

Pantelis Michalopoulos
202 429 6494
pmichalopoulos@steptoe.com

1330 Connecticut Avenue, NW
Washington, DC 20036-1795
202 429 3000 main
www.steptoe.com
                              REDACTED—FOR PUBLIC INSPECTION

April 12, 2019

By IBFS

Marlene H. Dortch
Secretary
Federal Communications Commission
445 12th Street SW
Washington, DC 20554

Re:     Tribune Media Company and Nexstar Media Group, Inc. Consolidated
        Applications for Consent to Transfer Control, E000143, E080179, E180874,
        E000330, E010013, E110115, E070263, E020240, E000014, E080247, E130234,
        E000117, E020032, E030207, E090031, E090127, E030276, E910615, E110116,
        E890118

Dear Ms. Dortch:

        DISH Network Corporation (“DISH”) respectfully requests that the Bureau dismiss or
deny the above-referenced applications. In support of this request, DISH submits the attached
public, redacted version of its Reply as filed in MB Docket No. 19-30 on April 9, 2019. DISH
has denoted with {{BEGIN HCI END HCI}} where Highly Confidential Information has been
redacted. A Highly Confidential version of the Reply was filed with the Commission pursuant to
the terms of the Protective Order.1

        Please contact me with any questions.

                                                  Respectfully submitted,


                                                         /s/
                                                  Pantelis Michalopoulos
                                                  Counsel for DISH Network Corporation

Enclosure

1
 Tribune Media Company and Nexstar Media Group, Inc. Consolidated Applications for
Consent to Transfer Control, Protective Order, MB Docket No. 19-30, DA 19-185 (Mar. 15,
2019).


Pantells Michalopoulos
2024296494
pmichalopoulos@steptoe.com                                                     Ste:Rtoe
                                                                                STEPT O E l J OflN SO N l V

1330 Connecticut Avenue, NW
Washington, DC 20036-1795
202 429 3000 main
www.steptoe.com




                              REDACTEO--FOR PUBLIC INSPECTION

Apri l 9, 2019

By ECFS

Marlene H. Dortch
Secretary
Federal Communications Commission
445 12lh Streel SW
Washinglon, DC 20554

Re:     Tribune Media Company and Nexstar Media Group, Inc. Consolidated
        Applications for Consent to Transfer Control, MB Docket No. 19-30

Dear Ms. Dortch:

         In acco rdance with the Protective Order in the above-captioned proceeding, I DISH
Network Corporation (" DISI-I") submi ts the enclosed public, redacted version of its Repl y and
supporting exhibit DISI-I has denoled wilh {{BEGIN BCI END BCI)) where High ly
Confidential In formation has been redacted. The Highly Confidential Information in the Reply
and supporting exhibit is the Highly Confidential Information of DISH. A Highly Confidential
version of thi s fi ling is being simultaneously filed with the Commission and will be made
availab le pursuant to the terms of the Protective Order.

        Please contact me with any question s.




                                                     Pantelis Michalopou los
                                                     Counsel Jor DISH Network CO/poration

Enclosure

I Tribune Media Company and Nexstar Media Group, lnc. Consoli dated App li cations for
Consent to Transfer Control, Protective Order, MB Docket No. 19-30, DA 19- 185 (Mar. 15,
2019) (" Proleelive Order").


                       REDACTED—FOR PUBLIC INSPECTION

                               BEFORE THE
                    FEDERAL COMMUNICATIONS COMMISSION
                           WASHINGTON, D.C. 20554

In the Matter of                        )
                                        )
Tribune Media Company                   )   MB Docket No. 19-30
(Transferor)                            )
                                        )
and                                     )
                                        )
Nexstar Media Group, Inc.               )
(Transferee)                            )
                                        )
Consolidated Applications for Consent   )
to Transfer Control                     )



                     REPLY OF DISH NETWORK CORPORATION



Pantelis Michalopoulos                      Jeffrey H. Blum, Senior Vice President, Public
Georgios Leris                              Policy and Government Affairs
Travis West                                 Alison Minea, Director and Senior Counsel,
Steptoe & Johnson LLP                       Regulatory Affairs
1330 Connecticut Ave, N.W.                  Hadass Kogan, Corporate Counsel
Washington, D.C. 20036                      DISH Network Corporation
(202) 429-3000                              1110 Vermont Avenue, N.W., Suite 750
                                            Washington, D.C. 20005
Counsel for DISH Network Corporation        (202) 463-3702


April 9, 2019


                                 REDACTED—FOR PUBLIC INSPECTION

                                               TABLE OF CONTENTS

I.    INTRODUCTION & SUMMARY ......................................................................................1

II. DISH HAS STANDING TO CHALLENGE THIS MERGER .............................................3

III. THE MERGER WILL RESULT IN HIGHER RETRANSMISSION FEES WITHOUT
     ANY COUNTERVAILING PUBLIC BENEFIT .................................................................4

      A. The Applicants Acknowledge that the Merger Will Raise Retransmission Fees.............4

            1. The Applicants’ History of Retransmission Fees is Misleading. ..............................7

            2. Blackouts Disproportionally Harm MVPDs. ...........................................................8

            3. The Harms Shown by DISH Are Merger-Specific. ..................................................8

      B. The Commission Has Authority to Impose the Conditions Requested by DISH ............9

IV. SIDECAR STATIONS WILL ALSO LIKELY COMMAND HIGHER FEES,
    THEREFORE HARMING CONSUMERS ........................................................................ 10

V. THE APPLICANTS HAVE BELATEDLY FILED APPLICATIONS FOR THEIR
   PROPOSED DIVESTITURES........................................................................................... 11

VI. CONCLUSION ................................................................................................................. 11


EXHIBIT A: Reply Declaration of Melisa Ordonez


                          REDACTED—FOR PUBLIC INSPECTION

                                 BEFORE THE
                      FEDERAL COMMUNICATIONS COMMISSION
                             WASHINGTON, D.C. 20554

In the Matter of                           )
                                           )
Tribune Media Company                      )     MB Docket No. 19-30
(Transferor)                               )
                                           )
and                                        )
                                           )
Nexstar Media Group, Inc.                  )
(Transferee)                               )
                                           )
Consolidated Applications for Consent      )
to Transfer Control                        )

                       REPLY OF DISH NETWORK CORPORATION

         DISH Network Corporation (“DISH”) respectfully replies to the Consolidated Opposition

to Petitions to Deny and Comments (“Opposition”)1 submitted by Tribune Media Company

(“Tribune”) and Nexstar Media Group, Inc. (“Nexstar”) (collectively, the “Applicants”) in the

above-referenced proceeding.2

I.       INTRODUCTION & SUMMARY

         Through their Application and Opposition, the Applicants have failed to carry their

burden to demonstrate that this transaction as proposed is in the public interest. Among other

harms:

         The Merger Will Result in Higher Prices. The Applicants essentially admit that by

owning additional stations, Nexstar will able to obtain higher retransmission consent fees. They

argue, however, that such price increases would be in the public interest because they would be

1
  Tribune Media Company and Nexstar Media Group, Inc., Consolidated Opposition to Petitions
to Deny and Comments, MB Docket No. 19-30 (Apr. 2, 2019).
2
 See Public Notice, Applications to Transfer Control of Tribune Media Company to Nexstar
Media Group, Inc., MB Docket No. 19-30, DA 19-82 (Feb. 14, 2019).


                          REDACTED—FOR PUBLIC INSPECTION

“[c]ompensating broadcasters for the value that they deliver to viewers . . . .”3 But they offer no

proof of that value. They vaguely talk about quality improvements, but they do not submit any

evidence about whether consumers value these improvements, how much they value them, how

much prices are likely to increase, and whether customers’ valuation of these improvements is

enough to offset these price increases.

         Not only do the Applicants fail to show that the price increases this merger would bring

would be due to quality improvements, but they actually seem to suggest the reverse—that the

higher prices resulting from the merger will motivate New Nexstar to improve its services,

meaning Nexstar will charge higher prices and then potentially improve the product it provides.

That is not an acceptable basis to approve a merger with demonstrable harms.

         And, the Applicants have not filed any economic testimony on the merger’s competitive

effects and benefits. The Applicants claim that they “reserve” the right to submit such testimony

later. But they have no such right. The reason for a pleading cycle is to afford parties with the

opportunity to reply to the Applicants’ showings in support of their proposed merger. The

Applicants’ failure to meet their burden is reason enough for the Commission to dismiss the

Application or set it for a hearing.

         Sidecar Stations Will Also Command Higher Fees. The Applicants also do not deny

that Nexstar’s sidecar groups charge more than comparable stations. In the attached declaration,

Ms. Ordonez explains the underlying reason why they can get away with doing so: Nexstar’s

size. By making Nexstar larger, the proposed merger would likely produce greater leverage for

the sidecar stations, leading to additional price increases for consumers.




3
    Opposition at 25.



                                                 2


                          REDACTED—FOR PUBLIC INSPECTION

         The Application is Premature. The Applicants did not file any divestiture applications

until April 3, 2019. Agreements between the Applicants and the entities acquiring divestiture

stations are essential to the Commission’s evaluation of the proposed underlying merger, as the

Commission needs to satisfy itself that their relationships are at arm’s length and that the

purchasers are genuine real parties in interest.

II.      DISH HAS STANDING TO CHALLENGE THIS MERGER

         The Applicants make the unsupported claim that DISH does not “even attempt to

establish standing in [its] Petition[].”4 But DISH does establish its standing on the very first

page of its Petition to Deny, in a footnote reproduced below:

         DISH is a multichannel video programming distributor (“MVPD”) that
         retransmits local broadcast stations in every one of the 210 designated market
         areas in the United States. DISH today has retransmission consent agreements
         with both Applicants, allowing it to retransmit certain local broadcast stations
         owned by the Applicants. DISH expects to negotiate with both Applicants in the
         future for continued retransmission of their stations. For these and other reasons
         described herein, DISH is a party in interest under Section 309(d)(1) of the
         Communications Act.5

         That standing is well-recognized by the Commission. DISH is both Applicants’

customer, paying each Applicant substantial amounts in retransmission fees each month. Indeed,

the Commission has confirmed DISH’s standing in its decision reviewing the last merger of none

other than Nexstar. In the Commission’s words:

         Consistent with recent precedent, we find that Cox and DISH et al. have met the
         requirements for standing because they have alleged that grant of the Applications
         will have specific, negative effects on themselves or their members (in the case of
         ITTA and ACA), and claim that those harms can be cured by dismissal or denial
         of the Applications. In the case before us, Cox and the DISH, et al. signatories
         each filed similar affidavits attesting that they or their respective member

4
    Opposition at 4.
5
  Petition to Deny of DISH Network Corp., MB Docket No. 19-30, at 1 n.1 (Mar. 18, 2019)
(“DISH Petition to Deny”).



                                                   3


                         REDACTED—FOR PUBLIC INSPECTION

         companies provide MVPD service and negotiate for retransmission consent from
         local broadcast television stations owned by Nexstar and Media General. 6

The Applicants present no reason to depart from established Commission precedent.

III.     THE MERGER WILL RESULT IN HIGHER RETRANSMISSION FEES
         WITHOUT ANY COUNTERVAILING PUBLIC BENEFIT

         A.      The Applicants Acknowledge that the Merger Will Raise Retransmission
                 Fees

         Most merger applicants attempt to show that their merger would produce marginal cost

efficiencies that would cause their prices to go down.7 Not in this case. The Applicants

effectively admit that this merger will enable New Nexstar to raise retransmission fees.8 They

state, incorrectly, that the merger’s opponents offer no evidence that their merger “will result in

increased fees for consumers.”9 But, according to the Applicants, retransmission prices for

distributors appear to be another matter. With respect to those, the Applicants state: “[t]he gist of

6
  Applications for Consent to Transfer Control of License Subsidiaries of Media General, Inc.,
from Shareholders of Media General, Inc., to Nexstar Media Group, Inc., Memorandum Opinion
and Order, 32 FCC Rcd. 183, 189 ¶ 16 (MB 2017).
7
  See, e.g., Applications for Consent to Transfer Control of Certain License Subsidiaries of
Raycom Media, Inc. to Gray Television, Inc., Memorandum Opinion and Order, MB Docket No.
18-230, DA 18-1286, ¶ 3 (Dec. 20, 2018) (listing synergies from the merger); Applications of
AT&T Inc. and DIRECTV for Consent to Assign or Transfer Control of Licenses and
Authorizations, Memorandum Opinion and Order, 30 FCC Rcd. 9131, 9134 ¶ 3 (2015) (“Our
record supports the Applicants’ claim that the newly combined entity will be a more effective
multichannel video programming distributor (‘MVPD’) competitor, offering consumers greater
choice at lower prices.”); Applications of Comcast Corporation, General Electric Company and
NBC Universal, Inc. for Consent to Assign Licenses and Transfer Control of Licenses,
Memorandum Opinion and Order, 26 FCC Rcd. 4238, 4334 ¶ 235 (2011) (“[The Applicants]
further argue that a vertically integrated Comcast-NBCU would use the actual (and lower)
marginal cost of programming as the basis for its pricing, and thus would charge a lower price to
consumers or provide a more attractive package to attract customers to its service.”).
8
  See, e.g., Nexstar Media Group, Inc., Acquisition of Tribune Media Company, at 12 (Dec. 3,
2018), https://www.nexstar.tv/wp-content/uploads/2018/12/Nexstar-Tribune-Investor-
Presentation-FINAL-12-3-18.pdf (listing retransmission consent revenue growth as a synergy
from the merger); Opposition at 25.
9
    Opposition at 25.



                                                 4


                            REDACTED—FOR PUBLIC INSPECTION

the Objecting Parties’ arguments is that by owning additional stations, Nexstar may be able to

obtain higher retransmission consent fees.”10 They then proceed to justify these higher prices on

the grounds that: “[c]ompensating broadcasters for the value that they deliver to viewers,

however, is not against the public interest.”11

           The problem, of course, is that they offer no proof of the merger’s supposed value. They

talk of an unsupported $160 million in “synergies and efficiencies” to be produced within one

year.12 If these efficiencies were a plausible result of the merger, and New Nexstar were under

competitive pressure, it would potentially be expected to use the merger’s efficiencies to lower

prices. But, instead, they suggest that they will reinvest in programming. That vague

reinvestment promise is inadequate to establish that so-called quality improvements will provide

a counterweight to increased prices for distributors and consumers. The Applicants also do not

attempt to show that consumers value these claimed improvements, how much they value them,

how much prices are likely to increase, and whether customers’ valuation of these improvements

are enough to offset these price increases.

           In fact, the Applicants do not even seem to be saying that prices will be higher because

quality will be better. They suggest the opposite: instead of being the result of improved service

quality, the higher prices would spur the Applicants to improve the quality of their service. The

Applicants specifically characterize higher compensation as “a market driver for those

broadcasters to increase the value they bring to viewers, benefitting both MVPD subscribers and

over-the-air viewers alike.”13

10
     Id.
11
     Id.
12
     Id. at 9.
13
     Id. at 25.


                                                    5


                           REDACTED—FOR PUBLIC INSPECTION

          In other words, the merger will permit higher prices, which will enable Nexstar to

improve its services. That is not an acceptable competitive rationale in support of a merger: the

Applicants seem to accept the premise that the merger will increase New Nexstar’s market

power, and then try to show that increased power will be put to good use.

          The Applicants thus do not rebut any of the three types of merger-specific evidence

submitted by DISH in its Petition to Deny:

         Larger broadcast group size results in higher fees.

         Mergers of large broadcast groups produce much steeper price increases than industry-
          wide norms.

         When DISH is faced with a blackout of one group’s stations, it pays higher than market
          prices for other groups’ stations that come up for renewal during the blackout.

          Notably, if these points were not valid, the Applicants would have exclusive knowledge

of the countervailing evidence. DISH knows only what it pays the Applicants and other

broadcasters. But the Applicants also know what they are paid by all other distributors. If that

information did not support the showings made by DISH, the Applicants would be quick to point

that out. But they do not.

          And, the Applicants have not filed any economic testimony on the merger’s competitive

effects and benefits. Instead, the Applicants purportedly “reserve the right to address DISH’s

economic arguments in a subsequent filing.”14 But this is not their right to reserve. The Public

Notice states that a party “seeking to raise a new issue after the pleading cycle has closed must

show good cause why it was not possible for it to have raised the issue previously.”15 The

Applicants have had their chance and do not explain why they have not availed themselves of it.

14
     Id. at 32 n.125.
15
  Public Notice, Applications to Transfer Control of Tribune Media Company to Nexstar Media
Group, Inc., MB Docket No. 19-30, DA 19-82, at 3 (Feb. 14, 2019).


                                                   6


                          REDACTED—FOR PUBLIC INSPECTION

         Without the benefit of expert economic support, the Applicants confine themselves to

sweeping claims that retransmission rates have been rising so fast because they started at a low

point, that they would have as much to lose from a blackout as the distributors, and that the

concerns expressed by DISH are industry-wide, not specific to this transaction. None of these

claims is valid.

                 1.     The Applicants’ History of Retransmission Fees is Misleading.

         The Applicants claim that retransmission fees are rising because broadcasters have been

historically undercompensated. But these claims of undercompensation are not relevant under

the applicable merger standard.16 If a merger is likely to increase prices, this is an adverse

competitive effect that needs to be offset by countervailing benefits. The merging parties’ view

that the prices they have received in the past are too low is not a basis to approve a merger with

proven harms.

         Contrary to the Applicants’ skewed depiction of the history of retransmission fees, the

primary driver of the increase in fees has been the increasing concentration in the broadcast

group market. As DISH demonstrated in its Petition, larger broadcast groups command higher

fees.17 This effect is especially pronounced after a merger, even though the acquired group

should exert some downward pressure on fees in the absence of market power.


16
   In assessing whether a merger is in the public interest, the Commission reviews how the
transaction will benefit consumers. One of the benefits the Commission considers is whether the
transaction will result in lower prices for consumers. See, e.g., Applications for Consent to
Transfer Control of License Subsidiaries of Media General, Inc., from Shareholders of Media
General, Inc., to Nexstar Media Group, Inc., Memorandum Opinion and Order, 32 FCC Rcd.
183, 193 ¶ 24 (2017) (“[B]enefits must flow through to consumers, and not inure solely to the
benefit of the company. For example, we will more likely find marginal cost reductions to be
cognizable than reductions in fixed cost because reductions in marginal cost are more likely to
result in lower prices for consumers.”) (citations omitted).
17
     DISH Petition to Deny at 22-25.



                                                  7


                           REDACTED—FOR PUBLIC INSPECTION

          Nor can the Applicants justify rising retransmission fees by pointing to fees paid by

MVPDs to cable networks.18 They provide no evidence that broadcast groups and cable

networks are in the same market and that their programming is substitutable.

                     2.   Blackouts Disproportionally Harm MVPDs.

          The Applicants also argue that broadcast groups suffer as much as MVPDs when there is

a blackout because they lose ratings (and therefore advertising revenue) and retransmission

fees.19 But these losses are limited because a sizeable portion of the consumers who watch their

programming switch from the affected distributor to one that still carriers the signal. For these

customers, the broadcaster losses neither ratings nor retransmission fees. In fact, CBS, after

engaging in a blackout with Time Warner Cable, stated that “there was no harm done financially

to the CBS Corporation” and “national ad dollars did not go down at all.”20 In contrast, Time

Warner Cable suffered significant subscriber losses.21

                     3.   The Harms Shown by DISH Are Merger-Specific.

          The Applicants next argue that the concerns raised by DISH are industry-wide. There is

no doubt that the retransmission fee market is in need of industry-wide reform. But the evidence

proffered by DISH is specific to the transaction and to the size that only Nexstar, Tribune, and a

few other broadcast groups can claim. DISH’s evidence is confined to the price effects of
18
     Opposition at 28.
19
     Id. at 29-30.
20
   Cynthia Littleton, Leslie Moonves: TW Cable Blackout Had No Financial Impact on CBS,
Variety (Sept. 11, 2013), https://variety.com/2013/tv/news/leslie-moonves-no-financial-impact-
to-cbs-from-tw-cable-blackout-1200607851/.
21
  See, e.g., Todd Spangler, Time Warner Cable Lost Subscribers During CBS Blackout, Variety
(Sept. 12, 2013), https://variety.com/2013/biz/news/time-warner-cable-lost-subscribers-during-
cbs-blackout-1200608744/ (“[While] Time Warner Cable dropped an unspecified number of
customers as a direct result of the 32-day blackout of CBS stations in major markets and the loss
of Showtime nationwide . . . the TW Cable blackout did not inflict any financial damage on
[CBS].”).



                                                   8


                            REDACTED—FOR PUBLIC INSPECTION

consolidations involving the largest broadcast groups. Thus, DISH’s rate comparison is focused

on the higher rates commanded by those broadcast groups that reach more than 1.5 million DISH

subscribers or have more than $500 million in annual revenues.22 Likewise, the mergers studied

by DISH for their effect on prices have all involved large broadcast groups.23

          B.        The Commission Has Authority to Impose the Conditions Requested by
                    DISH

          The Applicants argue that there is no basis to impose structural conditions—including a

review of Nexstar’s use of sidecar arrangements, proposed divestitures, and termination of

Nexstar’s JSAs—because they “are unrelated to the Transaction under review and ignore the

comprehensive regime of codified regulations which govern the broadcast industry.” 24 The

Commission’s authority to condition license transfers would be pointless unless the Commission

imposes requirements that go beyond those found in the Commission’s industry-wide rules. As

the Commission has put it:

          Our extensive regulatory and enforcement experience enables us, under this
          public interest authority, to impose and enforce conditions to ensure that the
          transaction will yield net public interest benefits. In exercising this authority to
          carry out our responsibilities under the Act and related statutes, we have imposed
          conditions to confirm specific benefits or remedy harms likely to arise from
          transactions.25

          While the Applicants may disagree with the conditions proposed, they cannot seriously

dispute the Commission’s authority to impose them.


22
  Declaration of William Zarakas and Dr. Eliana Garcés at 16 (attached as Exhibit B to DISH
Petition to Deny).
23
     Id. at 22-24
24
     Opposition at 19; see also id. at 17-21.
25
 Applications of Charter Communications, Inc., Time Warner Cable Inc., and
Advance/Newhouse Partnership for Consent to Assign or Transfer Control of Licenses and
Authorizations, Memorandum Opinion and Order, 31 FCC Rcd. 6327, 6338 ¶ 30 (2016).



                                                   9


                           REDACTED—FOR PUBLIC INSPECTION

IV.       SIDECAR STATIONS WILL ALSO LIKELY COMMAND HIGHER FEES,
          THEREFORE HARMING CONSUMERS

          The Applicants do not deny that Nexstar’s sidecar groups charge higher rates than

comparable stations without sidecar agreements, but argue that this is another industry-wide,

non-merger-specific concern. Not so. Nexstar’s sidecar groups are able to command higher

rates because of Nexstar’s power, and the proposed increase in that power will translate in higher

prices for sidecar stations, too.

          Nexstar has five major sidecar groups: White Knight, Mission, Marshall, Warwick, and

Parker. {{BEGIN HCI




                                     END HCI}}.26

          DISH has been forced to pay sidecar groups higher rates than other stations in their

markets.27 Ms. Ordonez explains that the Nexstar sidecar groups can get away with these rates

for one primary reason: Nexstar’s own power.28 By making Nexstar larger, the proposed merger

would likely produce greater leverage for the sidecar stations, too.29

          In response, the Applicants simply state that an inquiry into its sidecar agreements would

be a fishing expedition because the sharing agreements are not before the Commission. 30 This is

incorrect: the conduct of Nexstar’s sidecar stations is relevant to the Commission’s evaluation of

26
     Ordonez Reply Decl. ¶ 4.
27
     Id. ¶ 5.
28
     Id. ¶ 5.
29
     Id. ¶ 6.
30
     Opposition at 19.



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                         REDACTED—FOR PUBLIC INSPECTION

this transaction and whether the increased bargaining power of Nexstar will flow to its sidecar

stations. The Commission thus has the authority to investigate these sharing agreements.31

V.     THE APPLICANTS HAVE BELATEDLY FILED APPLICATIONS FOR THEIR
       PROPOSED DIVESTITURES

       The Commission should apply careful scrutiny to determine whether any proposed

divestitures are genuinely at arm’s length.32 Even though the Applicants announced divestitures

weeks ago,33 they did not file any of them until last Wednesday, long after the due date for

Petitions to Deny.34 Some were not filed until yesterday. 35

VI.    CONCLUSION

       For the foregoing reasons, the Commission should deny the Application as currently

proposed.

31
  See 47 U.S.C. § 403 (“The Commission shall have full authority and power at any time to
institute an inquiry, on its own motion, in any case and as to any matter or thing concerning
which complaint is authorized to be made, to or before the Commission by any provision of this
chapter, or concerning which any question may arise under any of the provisions of this chapter,
or relating to the enforcement of any of the provisions of this chapter.”); 47 U.S.C. § 154(i)
(“The Commission may perform any and all acts, make such rules and regulations, and issue
such orders, not inconsistent with this chapter, as may be necessary in the execution of its
functions.”); 47 U.S.C. § 154(j) (“The Commission may conduct its proceedings in such manner
as will best conduce to the proper dispatch of business and to the ends of justice.”).
32
  Applications of Tribune Media Company and Sinclair Broadcast Group, Inc. for Transfer of
Control of Tribune Media Company and Certain Subsidiaries, WDCW(TV) et al. and for
Assignment of Certain Licenses from Tribune Media Company and Certain Subsidiaries,
Hearing Designation Order, 33 FCCR 6830, 6830 ¶ 2 (2018) (“[M]aterial questions remain
because the real party-in-interest issue in this case includes a potential element of
misrepresentation or lack of candor that may suggest granting other, related applications by the
same party would not be in the public interest.”).
33
  Nexstar Media Group Enters into Definitive Agreements to Divest Nineteen Stations in Fifteen
Markets for $1.32 Billion, Nexstar (Mar. 20, 2019), https://www.nexstar.tv/nexstar_tribune_
divestiture_agreements/.
34
  See, e.g., Application for Assignment of Broadcast Station KSTU, File No. BALCDT-
20190403ABZ (filed on Apr. 3, 2019).
35
 See Application for Assignment of Broadcast Stations WISH-TV and WNDY-TV, File No.
BALCDT-20190408AAR (filed on Apr. 8, 2019).



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                      REDACTED—FOR PUBLIC INSPECTION

                                        Respectfully Submitted,

                                          /s/
Pantelis Michalopoulos                  Jeffrey H. Blum, Senior Vice President, Public
Georgios Leris                          Policy and Government Affairs
Travis West                             Alison Minea, Director and Senior Counsel,
Steptoe & Johnson LLP                   Regulatory Affairs
1330 Connecticut Ave, N.W.              Hadass Kogan, Corporate Counsel
Washington, D.C. 20036                  DISH Network Corporation
(202) 429-3000                          1110 Vermont Avenue, N.W., Suite 750
Counsel for DISH Network Corporation    Washington, D.C. 20005
                                        (202) 463-3702

 April 9, 2019




                                       12


                         ooo


                                      *       *       *      *

                                          DECLARATION

       I declare under penalty of perjury that the facts contained within the foregoi      eply,

except for those facts for which official notice may be taken, are true and corregt to the best of

my information, knowledge and belief.



                                              Exێcuted on Afpri




                                              . Blum, Senior Vice President, Public
                                              Policy and Government Affairs
                                              DISH Network Corporation


                        REDACTED—FOR PUBLIC INSPECTION

                                          EXHIBIT A

                      REPLY DECLARATION OF MELISA ORDONEZ

       I, Melisa Ordonez, being over 18 years of age, swear and affirm as follows:

       1.      I make this declaration using facts of which I have personal knowledge of, or

based on information provided to me, in connection with the proposed acquisition of Tribune

Media Company (“Tribune”) by Nexstar Media Group, Inc. (“Nexstar”), and the likely effects of

this acquisition on DISH Network Corporation (“DISH”).

       2.      I am currently the Director of Local Programming for DISH Network Corporation

(“DISH”). In that capacity, I am responsible for the negotiation of retransmission consent

contracts on behalf of DISH with every local broadcast group and local broadcast station in the

United States. I have been the lead negotiator in DISH’s effort to renew its retransmission

consent agreements with numerous broadcasters, including with each of Nexstar and Tribune in

2016. I have negotiated more than a thousand retransmission consent agreements in the last

decade.

       3.      This reply declaration responds to certain statements by the Applicants in their

Consolidated Opposition to Petitions to Deny and Comments and other questions I have been

asked since I submitted my initial declaration in this proceeding regarding retransmission

consent agreements.

       4.      Sidecar Stations. Nexstar has five major sidecar groups: White Knight, Mission,

Marshall, Warwick, and Parker. {{BEGIN HCI


                          REDACTED—FOR PUBLIC INSPECTION




                                                          END HCI}}.

       5.      DISH has been forced to pay these sidecar groups higher rates than other stations

in their markets. Nexstar sidecar groups can get away with these rates for one primary reason:

Nexstar’s own power.

       6.     By making Nexstar larger, the proposed merger would likely produce greater

leverage for the sidecar stations, too.




                                                2


       The foregoing declaration has been prepared using facts of which I have personal

knowledge or based upon information provided to me. I declare under penalty of perjury that the

foregoing is true and correct to the best of my current information, knowledge, and belief.



                                                     Executed on April 9, 2019



                                                     Melisa Ordonez      a{/}%
                                                     Director, Local Programming
                                                     DISH Network Corporation


                        REDACTED—FOR PUBLIC INSPECTION

                                CERTIFICATE OF SERVICE

       I, Georgios Leris, hereby certify that on April 9, 2019, I caused a copy of the foregoing

public, redacted version of the Reply of DISH Network Corporation to be filed electronically

with the Commission using the ECFS system and caused a copy of the foregoing to be served

upon the following individuals by electronic mail.


Mace J. Rosenstein                                   Gregory L. Masters
Covington & Burling LLP                              Wiley Rein LLP
One City Center                                      1776 K Street, NW
850 Tenth Street, NW                                 Washington, D.C. 20006
Washington, D.C. 20001                               GMasters@wileyrein.com
MRosenstein@cov.com                                  Counsel for Nexstar Media Group, Inc.
Counsel for Tribune Media Company

David Brown                                          David Roberts
Video Division                                       Video Division
Media Bureau                                         Media Bureau
Federal Communications Commission                    Federal Communications Commission
445 Twelfth Street, SW                               445 Twelfth Street, SW
Washington, D.C. 20554                               Washington, D.C. 20554
David.Brown@fcc.gov                                  David.Roberts@fcc.gov

Chris Robbins                                        Jim Bird
Video Division                                       Transaction Team
Media Bureau                                         Office of General Counsel
Federal Communications Commission                    Federal Communications Commission
445 Twelfth Street, SW                               445 Twelfth Street, SW
Washington, D.C. 20554                               Washington, D.C. 20554
Chris.Robbins@fcc.gov                                Jim.Bird@fcc.gov

Johanna R. Thomas
Jenner & Block LLP
1099 New York Avenue, NW
Washington, D.C. 20001
JThomas@jenner.com
Counsel for NCTA

                                                       /s/
                                                     Georgios Leris
                                                     Steptoe & Johnson LLP



Document Created: 2019-04-12 10:13:30
Document Modified: 2019-04-12 10:13:30

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