XM, Sirius Merger Gets FCC Chairman Kevin Martin's Approval

Final vote on the merger could come at any time

FCC Chairman Kevin Martin has recommended that the merger between Sirius and XM be approved according to the Associated Press. To get Martin’s approval, provisions were added to the merger deal that would turn over a portion of the available bandwidth from the satellite providers to noncommercial and minority programming.

The provisions for turning over portions of the satellite bandwidth require the two companies to donate 8% of their satellite capacity to noncommercial and minority broadcasts. That available bandwidth equates to about 12 channels each from Sirius and XM for a total of 24 channels.

Other provisions from Martin to his approval include an open radio agreement that would promote competition among manufacturers of satellite radios and a three year price freeze on all packages and an a la cart option to be available within three months of the close of the deal.

The AP quotes Martin from a statement, “As I've indicated before, this is an unusual situation. I am recommending that with the voluntary commitments they (the companies) have offered, on balance, this transaction would be in the public interest.”

Despite Martin’s approval the final vote to approve the merger is yet to happen and the other four commissioners could still say no to the merger. There is no clear indication on how the other commissioners feel on the merger at this time.

The approval of the merger has been long sought by Sirius and XM. The merger was approved by the U.S. Justice Department in March. When Sirius and XM first announced they intended to merge their two companies the deal was worth in the area of $13 billion.

The final vote on the merger could come any time after Martin’s recommendation is given to his fellow commissioners.