FCC Seeks Public Comment On Satellite Radio Merger

Consumers invited to sound off on $4.7 billion deal to unite XM and Sirius

The Federal Communications Commission issued a notice (PDF) asking for members of the public to voice their opinions on the merits of combining the nation's two satellite radio broadcasters.

The notice marks the FCC's acceptance of the two companies’ applications to merge. The combined assets of the two media players were valued at approximately $4.7 million when the deal was first announced last February.

The FCC now has less than 180 days to decide whether to approve the proposed merger, placing the deadline sometime in December of this year. The Department of Justice must also add its approval for the deal to proceed. The DOJ is charged with assessing whether the combination of the only two companies broadcasting audio programming via satellite within the United States would constitute an illegal monopoly.

The two original satellite broadcast licenses granted to XM and Sirius by the FCC 10 years ago expressly stipulated that no single licensee would be "permitted to acquire control" of both licenses. However, proponents of the merger have argued that the preponderance of alternative audio devices -- from iPods to music-playing mobile phones -- has substantially altered the marketplace, ensuring that consumers will continue to enjoy a wide variety of competitive offerings.

The deadline for interested parties to file comments, or petitions to deny the merger, is July 9, 2007. Comments can be filed electronically using the FCC's online form

Reference:Steve Kovsky,dailytech