Broadcasters want conditions in Comcast-NBC deal

WASHINGTON | Wed Mar 31, 2010 3:16pm EDT

WASHINGTON (Reuters) - Broadcast affiliates of CBS Corp, News Corp's FOX and Walt Disney Co's ABC are seeking some regulatory conditions from the deal between Comcast Corp and NBC Universal so that they are not put in a competitive disadvantage.

CBS Television Network Affiliates Association Chairman Tim Busch said in a March 29 letter to affiliates that after conferring with FOX and ABC affiliates, he will urge Comcast to voluntarily agree to certain "regulatory conditions."

"Our specific concern is that Comcast/NBCU would have incentives to competitively disadvantage and discriminate against non-NBC affiliated stations in terms of Comcast's cable carriage, retransmission consent negotiations, and advertising and promotion practices," Busch said in the letter.

Comcast Corp, the top U.S. cable provider, is seeking a controlling stake in NBC Universal in a $30 billion joint venture being reviewed by the Department of Justice's antitrust division and the Federal Communications Commission, the media industry's regulator.

U.S. authorities are expected to approve the deal with certain conditions to ensure that Comcast's rivals such as Verizon Communications Inc, DISH Network Corp and smaller cable operators can continue to show NBC programs.

Comcast has also committed to expanding children's and diverse programing and continuing free over-the-air television through the NBC and Spanish-language networks.

In the letter to affiliates, Busch did not specify which conditions he is seeking from Comcast.

"Comcast is in discussions with a variety of stakeholders, including affiliates of the major broadcast networks and appreciates the constructive way in which they are approaching the discussions," Comcast spokeswoman Sena Fitzmaurice said in a statement.

The FCC set a May 3 deadline for public comments on the proposed Comcast-NBCU venture and a final date of June 17 to respond to FCC replies.

The transaction has caused an uproar with consumer and public interest groups who have warned that the deal is likely to result in less competition and higher prices for consumers.

(Reporting by John Poirier; Editing by Gary Hill)

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