Martin was hoping to decide on the merger by the end of June, but recently has given no timetable. The pay-radio companies committed not to raise rates and will sell smaller packages of channels at lower prices, Martin said in a statement. The situation is “unusual” because back when the FCC approved the two satellite licenses, it also said they should not be held by the same company. “Then we have to decide what to do about the merger and whether there are any specific conditions that need to be placed on it, he added.
The staff of the Federal Communications Commission has proposed that the agency approve the merger of XM Satellite Radio Holdings Inc. Justice Department antitrust officials signed off on the proposed merger in March after determining that the two satellite-radio operators compete with a variety of media, including MP3 players and Internet radio. FCC Chairman Kevin Martin said Sunday that he will support the merger of XM and Siruis satellite radio under a voluntary set of conditions proposed by the two companies. Broadcasters counter that it will create a monopoly that competes with they for local listeners, while they are unable to compete with satellite radio for a national audience.
“According to a source familiar with the proposals, the two companies have pledged not to raise prices for 36 months, to offer interoperable radios within a year of the merger’s approval, and set aside of 8% of their spectrum, 4% for noncommercial use, 4% for commercial use by outside entities. , setting the stage for a final vote on the multibillion-dollar deal in as little as three weeks if the companies meet several conditions. Martin said last week that the agency may vote this month. I expect that will happen pretty shortly.
Some FCC officials disagree, however. The agency is under no deadline to act and has been reviewing the $3. In an interview for C-SPAN Friday, FCC Commissioner Jonathan Adelstein said that the decision will have to come in two parts, with the FCC first changing its rules to allow one company to own the two satellite-radio licenses. “I am recommending that with the voluntary commitments they’ve offered, on balance, this transaction would be in the public interest.
after the companies agreed to certain conditions, Bloomberg News reported today. Martin is expected to circulate a proposal for review by the other four commissioners this week, said a source, and perhaps as early as Monday. ’s purchase of XM Satellite Radio Holdings Inc. 7 billion deal since March 2007.
The move tees up the next round in the process, which is review by the other four commissioners. The all-stock bid by New York-based Sirius for its larger rival needs majority approval of the five-member FCC to clear its last regulatory hurdle. and Sirius Satellite Radio Inc. But Justice only deals with whether a merger would be anticompetitive, while the FCC has other public interest concerns to weigh.
“The companies have argued that allowing them to merge will make them more competitive in a crowded audio-delivery marketplace that includes terrestrial and cable and Internet radio and mp3 players.
