Satellite TV providers team up to sue states for tax programs
January 29, 2010 - Direct TV and Dish Network, the country's largest satellite television companies, have announced they will collaborate in a lawsuit against the state of Massachusetts, ABC News reports.
The TV entertainment providers filed the suit this week in response to a new 5 percent tax for satellite customers, which the state government approved last June.
Representatives from both companies are calling this charge "discriminatory," as no similar taxation exists for cable TV service, and suggested that they will lose several customers because of it.
This is the fourth time the two satellite TV operators have taken charge against state-mandated taxes, as they have similar cases pending in Florida, Ohio and Tennessee, according to the media outlet.
These initiatives may prove beneficial to homeowners and renters, as they could inspire fierce competition between satellite TV companies and inspire them to lower their rates or offer inclusive package deals.
Some companies, such as Verizon, have already noted a competitive streak in the television market, as it blamed the initiatives of cable and satellite providers for a decline in subscribers to its FiOS service this year, TVPredictions.com reports.
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