The FCC Approves Sirius-XM Merger

By Chris - 07/26/2008 6:28:31 PM


If you like either Sirius or XM satellite radio shows, you should be happy to hear the FCC has approved with a 3 vs 2 vote, the merger between this two companies. With Sirius and XM being the only two satellite radio operators in the USA, why do I feel this whole deal has the word monopoly firmly stamped on it? After all with such a strong alliance would anyone else dare to start any other new satellite radio company?

The FCC barely approved the merger only after Sirius-XM agreed to pay a $19.7 million “voluntary contribution” to the FCC for violating FCC’s regulation. Besides that, there are a few rules which will be respected or else:

  • Consumers to be able to purchase small a la carte packages.
  • Third parties to be able to make their own receivers.
  • Sirius-XM to design an interoperable receiver which will get signals from both companies.
  • 4% of all channels to be reserved for public interest programming.
  • No increase in pricing for three years.

Looking back in time, about 11 years ago when XM and Sirius received satellite radio licenses, you will discover the FCC had a never merge condition. Apparently never means 11 years or so.

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Tags: radio, Satellite, sirius, XM



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