FCC Member Names Terms in XM-Sirius Deal
[2008-7-22]
Tag : Satellite Programming
Federal Communications Commission member Jonathan Adelstein , a Democrat, who said he discussed his plan with XM and Sirius satellite radio this week, could hold the swing vote in the five-membercommission, with two votes already cast in favor of the deal.
He told the companies that they would have to agree to cap pricesfor their service for six years after the merger, set asideone-quarter of their radio spectrum for noncommercial and minorityprogramming and equip satellite receivers with high-definitionover-the-air radio signals to ensure that traditional radio will beable to compete with the monopoly.
Adelstein has also told XM of the District and Sirius of New Yorkthat they would have to agree to an independent monitor to ensurethey live up to the agreement.
Sirius and XM declined to comment on Adelstein's proposal.
The companies announced their merger plans more than a year ago,but the union has been held up by labored regulatory reviews by the Department of Justice and FCC. The Justice Department passed the merger last March,saying the satellite radio operators face increased competitionfrom Internet radio, terrestrial radio and iPods so a merger would not harm consumers.
Yet dozens of lawmakers have expressed concern about the merger andseveral state attorneys general have asked the FCC to block thedeal, saying the combined company would hurt consumers who couldface higher prices and fewer choices with the monopoly satelliteradio provider.
Under Adelstein's proposal, the companies would have to disclosetechnical specifications so that independent radio receivers couldoperate their programming and would have to promise not to pass onincreased programming costs to customers.
Federal Communications Commission member Jonathan Adelstein , a Democrat, who said he discussed his plan with XM and Sirius satellite radio this week, could hold the swing vote in the five-membercommission, with two votes already cast in favor of the deal.
He told the companies that they would have to agree to cap pricesfor their service for six years after the merger, set asideone-quarter of their radio spectrum for noncommercial and minorityprogramming and equip satellite receivers with high-definitionover-the-air radio signals to ensure that traditional radio will beable to compete with the monopoly.
Adelstein has also told XM of the District and Sirius of New Yorkthat they would have to agree to an independent monitor to ensurethey live up to the agreement.
Sirius and XM declined to comment on Adelstein's proposal.
The companies announced their merger plans more than a year ago,but the union has been held up by labored regulatory reviews by the Department of Justice and FCC. The Justice Department passed the merger last March,saying the satellite radio operators face increased competitionfrom Internet radio, terrestrial radio and iPods so a merger would not harm consumers.
Yet dozens of lawmakers have expressed concern about the merger andseveral state attorneys general have asked the FCC to block thedeal, saying the combined company would hurt consumers who couldface higher prices and fewer choices with the monopoly satelliteradio provider.
Under Adelstein's proposal, the companies would have to disclosetechnical specifications so that independent radio receivers couldoperate their programming and would have to promise not to pass onincreased programming costs to customers.
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