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It appears that almost nobody in government thinks a single direct broadcast satellite system is a good idea.

For the past month, while US senators grilled EchoStar and Hughes Electronics executives and lobbyists, and Federal Communications Commission members pored over mountains of documents pertaining to the proposed merger of the nation's two satellite television services, a coalition of state attorneys general opposed to the deal has gradually been gathering momentum. Led by Missouri attorney general Jeremiah Nixon, a group of as many as 30 top legal officials from as many states may attempt to block the deal, even if it wins approval by federal regulators.

During Senate hearings the first week of March, Nixon told the press that he and his colleagues believe the merged DBS service would be "a perfect monopoly," leaving consumers in small towns and in rural areas at its mercy. He has questioned EchoStar chairman Charlie Ergen's assertions that the combined service would bring unprecedented benefits to American TV viewers. Nixon stated that his coalition would act in concert or "independently, if necessary" to prevent the merger.

Ergen and Eddie Hartenstein, his counterpart at DirecTV, have promised to deliver broadband Internet service and a multiplicity of programming to small-town America while re-transmitting local stations in more than 200 urban areas. "These are things that we simply could not do on our own," Ergen told members of a Senate antitrust subcommittee. "The merger of EchoStar and Hughes will promote competition, provide a greater choice of services, and provide much needed benefits for all American consumers."

For the past month, senators have questioned the wisdom of approving the acquisition of DirecTV by its smaller competitor. "I think this would be great for you and your shareholders, and that's what you're all about. But I don't believe at this point that it would be great for the American people," Senator Herb Kohl (D-Wisconsin) replied to Ergen. "I'm very, very concerned about this deal."

FCC commissioners have requested more information from both companies before proceeding any further in their investigation of the merger. One concession the FCC may ask for is that the combined service give up one of their satellite locations—a concession Ergen has described as a "deal breaker." The US Justice Department and the Federal Trade Commission must also vet the merger. Should EchoStar and DirecTV overcome every obstacle, their $26 billion merger would create the third-largest television delivery system in North America, with an estimated 17 million subscribers.