XM, Sirius merger approved
July 26th 2008
Washington Post reports that Federal Communications Commission regulators have approved the merger between XM and Sirius, the world's two and only two satellite radio providers. The deal, worth $3.3-billion that covers 18-million subscribers, was opposed by dozens of lawmakers, consumer groups and broadcasters because it creates a monopoly.
"Consumers will get to enjoy the best of the programming on both services," said FCC Chairman Kevin J Martin. "They'll also be able to pick and choose channels at a lower price."
Three of five FCC board members voted to allow the union, though conditions were attached:
• A three-year price cap
• Reduced channel package prices
• Merged companies must offer a la carte pricing and receivers that support free choice
• Companies must offer receivers that support both XM, Sirius channels
• Companies must offer more education and minority programming
Further, XM and Sirus agreed to pay $17.5-million and $2.2-million, respectively, in fines to resolve complaints that some of the companies' receivers and signal-boosting towers were in violation of FCC rules. The companies have promised to stop the practices and bring equipment into compliance.
XM and Sirius are not entirely out of the woods yet as the still has to pass Justice Department anti-trust scrutiny.
Editor's note: Not the outcome that I hoping for, but some fairly serious conditions have been imposed. However, enforcement of the conditions, something that likely won't see much public involvement or transparency, is another matter entirely.
Whether you're for or against the merger, contact your Senator or Congressman and let him know what you'd like to see done going forward...
