Defending the rights of hundreds of thousands of satellite TV subscribers in Florida, DirecTV and EchoStar Communications, and its Dish Network, have filed a lawsuit in the Florida Circuit Court for Leon County challenging the constitutionality of provisions in Florida's communications services tax law that discriminate against satellite TV services in favor of competing services sold by cable.
"Satellite TV provides an affordable alternative to rising cable rates in states where the two services compete on a level playing field," said David Rayner, chief financial officer for EchoStar.
"Florida residents have less robust competition in the pay-TV marketplace as a result of the cable-sponsored special tax placed on satellite service. We will continue to oppose unconstitutional and anti-consumer laws that put satellite at a competitive disadvantage to cable."
Under Florida's communications services tax law, satellite customers are forced to shoulder a substantially higher tax burden – 10.8 percent on retail sales – than their cable counterparts, who pay only 6.8 percent.
"This lawsuit is about protecting our customers – many of whom dropped cable for satellite television – throughout the state of Florida," said Mike Palkovic, chief financial officer, DirecTV.
