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.

[Thanks to everyone who sent this in]

Gulp. FCC chairman Kevin Martin is prepping for a big ol' congressional probe this morning. Martin received a letter today warning that he is being investigated for, "management practices that may adversely affect the Commission's ability to both discharge effectively its statutory duties and to guard against waste, fraud, and abuse." Martin, you'll recall, was recently accused of being in Verizon's back pocket during its attempt to revise the 700MHz open-access rule. The investigation is prompted by allegations made by "credible" FCC employees, both current and former, so far reaching -- including its handling of Comcast and the so-called, 70-percent ruling -- that Ars Technica expects it to turn the "FCC upside down." Martin has two weeks to deliver "a truckload" of records to Congress before this revolution gets televised.

FCC Chairman Kevin Martin announced at CES last night that his agency will be looking into Comcast's data-meddling ways. "Sure, we're going to investigate and make sure that no consumer is going to be blocked," he said. Per FCC rules Comcast is allowed to use "reasonable traffic management" solutions to keep its network running, but Martin said he thinks Comcast and other ISPs should be required to disclose filtering to customers even if it's found to be reasonable. That's pretty encouraging, but we'll see how this all plays out in the industry -- especially since NBC and AT&T execs were talking excitedly about ISP-based copyright filtering on another stage at CES earlier in the day.

[Via Slashdot]

Prepare to feel your carrier-hate well from within. Remember Verizon Wireless' lawsuit against the FCC claiming that the 700MHz open-access auction rule "violates the US Constitution?" Well, according to "industry sources," FCC chairman Kevin Martin is "aggressively pushing" for revisions to the 700MHz open-access rule in response to Verizon Wireless' lobbying efforts. However, having been met with an internal FCC "backlash" last week, Martin is said to be preparing a "declaratory ruling" in an effort to fast-track support for VZW's claim outside of the normal public-comment process. Insiders worry that Martin is caving to VZW pressure as the auction, expected to generate some $15 billion in FCC fun-money, draws near. Man, nothing says free market capitalism like a little protectionist bullying -- "can we sue you now."

[Via Phonescoop]

If you've got concerns about not getting your fair shake on the new 700MHz spectrum, don't worry, because a group known as M2Z (backed by Google, Amazon, Netscape, MySpace, and TiVO) has got you covered. The gang is looking for the FCC to break off 25MHz of the new spectrum to set up a "free" wireless internet stream for nearly 95 percent of Americans to go surfing on. There's only one problem: the FCC doesn't look like it's going to give it up. AIn a recent request to the federal agency, M2Z asks to be given bandwidth on the soon-to-be-abandoned airwaves, instead of following typical FCC procedure which requires an auction to be held. In the M2Z plan, the U.S. Treasury would get 5 percent kickbacks from any gross revenue the network derived, though it appears FCC chairman Kevin Martin is looking to put a kibosh on the plot. According to the Wall Street Journal, Martin has circulated a document to other FCC commissioners calling for them to decline the group's proposal, and the CTIA (the wireless industry's lobby group), meanwhile, has urged the agency to "dismiss or deny M2Z's application," on the grounds that it would circumvent standard procedure. You can expect some serious back-and-forth over this in the upcoming days, so you'd better get used to the 700MHz soap-opera.

The FCC has just approved rules on the highly-sought after, Google-attracting 700MHz wireless frequency band auction which will take place sometime next year. The agency has decided that one-third of the soon-to-be-empty band will be available to consumers under FCC chairman Kevin Martin's "open access" plan, which forces the winning bidder to keep the band accessible to any wireless device or application regardless of the maker, opening up options heretofore unseen on established networks. The 700MHz range -- which is being vacated by television broadcasters going digital -- is desirable because of its ability to travel long distances and easily penetrate walls, and Martin feels it could provide a "third pipe" to US homes, circumventing the established stranglehold cable and telephone companies have on bandwidth. A total of 60 megahertz will be auctioned off, with twenty-two of them "open," and another 10 set aside for a "national public safety" network. The auctioning off of the frequency is expected to raise as much as $15 billion for the federal treasury.