Karmazin promises interoperable Sirius / XM radios in less than 9 months

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Posts with tag Satellite radio

In a somewhat unsurprising move, the FCC has approved the merger of Sirius and XM after protracted -- and incredibly boring -- multi-year negotiations. The Federal Communication Commission decided tonight to allow a deal that will bring the two satellite radio providers together, creating a combined subscriber base of roughly 18 million users. The deal isn't without catches, however, with the Commission stating that the companies must cap prices for three years following the merger, allow subscriber choice on content, and lower fees for channel packages. FCC head Kevin Martin seemed pleased with the final outcome, stating, "Consumers will get to enjoy the best of the programming on both services." You know who wasn't so stoked? Clear Channel.
While the FCC hasn't announced any decision, the Associated Press says that its chairman will recommend approval of the $5 billion merger between XM and Sirius. Kevin Martin does so, however, on the condition that the two satellite broadcasters freeze consumer prices for three years and turn over 24 channels (that's 8% of their combined satellite capacity) to "noncommercial and minority programming." The merged giant must also offer an "open radio standard" meant to create competition amongst radio manufacturers and an "a la carte" service that would allow customers to only pay for the channels they want as long as they purchase new radios. Speaking of those non-existent radios, the two claim that Interoperable radios capable of receiving both XM and Sirius broadcasts would be available "within one year." With DoJ Antitrust approval out of the way, all that's left now is to circulate Martin's recommendation for final vote from the FCC's four other commissioners -- a vote on a merger which, as strange as it seems, was expressly prohibited by the FCC when it licensed the satellite radio industry back in 1997.
It looks like a recent letter from two members of the House of Representatives Judiciary Committee to Attorney General Michael Mukasey won't be enough to derail the seemingly inevitable XM / Sirius merger, at least according to one of those ever-present analysts. As OrbitCast reports, Representatives John Conyers and Steve Chabot had complained that Justice Department staff "may be trying to rush through the merger" before the Attorney General himself had time to fully participate, and that "Assistant Attorney General for Antitrust Thomas O. Barnett may intend to grant the merger over the objections of department staff." According to the AP, however, Stifel, Nicolaus & Co. analyst Blair Levin says that while the final outcome is indeed a "close call," he believes that "the department will give its blessing," paving the way for the FCC to give its go-ahead.
As the constant battle between the National Association of Broadcasters and nearly everyone else continues on over the potential XM / Sirius merger, the entity is now asking the FCC to put a stop on the 180-day clock for considering the junction. Reportedly, all the NAB wants is "time to go through documents it said it is getting through a Freedom of Information Request filed in March," and it seemingly feels that some of the articles it's still waiting for contain proof of "serious apparent wrongdoing by XM and Sirius executive and senior-level employees regarding the operation of FM modulators / translators and / or terrestrial repeaters." Of note, both of the aforementioned sat radio providers shot back by stating that the NAB's "allegations are unfounded and its recent filing is just an attempt to stall the process." From the outside looking in, we'd say that sounds just about right. [Warning: PDF read link]






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