Brownback Urges FCC Not to Approve XM-Sirius Merger
Former Republican Presidential Candidate Comes Out Against Satellite-Radio Combination in Letter to Federal Communications Commission Chairman Kevin Martin
By John Eggerton -- Broadcasting & Cable, 4/10/2008 1:33:00 PM
Former Republican presidential candidate Sen. Sam Brownback (Kan.) wrote Federal Communications Commission chairman Kevin Martin Thursday asking him not to approve the XM Satellite Radio-Sirius Satellite Radio merger.
According to a copy of the letter, Brownback said the Department of Justice made a mistake when it found nothing anticompetitive about the merger and warned against allowing a combination of companies "peddling obscene and indecent material."
Brownback pointed to the FCC's "prohibition" on two satellite-radio companies "ever merging" and its mandate that XM and Sirius produce interoperable radios.
The first point has been debated, with proponents of the deal saying that the commission had not prohibited one company from owning the two licenses, but had simply provided guidance to that effect.
That reading got some support when former FCC chairman Reed Hundt, who headed the agency when the satellite licenses were handed out, weighed in supporting the merger. Hundt said the FCC meant to create competition to terrestrial radio, which hadn't happened with the two companies as separate entities.
The second point has not been debated. The two companies did not create the interoperable radios, although ironically, the DOJ used that separation to argue for the deal rather than against it, which did not sit well with Brownback.
The senator was not gentle in his criticisms of that DOJ decision, saying that it laid a "dangerous trap" for the FCC. "The FCC must not endorse the department's flawed finding that XM and Sirius do not compete with each other because it is to expensive for existing subscribers to switch providers," given the need to buy new equipment, he said.
"Essentially, the department rewarded XM and Sirius for their audacious refusal to comply with an FCC requirement to manufacture consumer-friendly interoperable radios," Brownback added, echoing the incredulity of the National Association of Broadcasters at Justice's reasoning.
Brownback -- who has been a leading voice for media-content control, including boosting indecency fines -- cited Howard Stern's Sirius show as an argument that "explicit programming will continue to play a prominent role in the business model" of the merged companies.
"I challenge the FCC to stand up where the Justice Department has laid down,” he added.
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FCC - approve the merger. If they raise prices post merger, then the consumer will decide - or is that what the NAB members are afraid of!
NAB: "Thank you Senator Brownback. Here's a sack of cash"
Brownback: "Thanks. What is a Sirius radio anyhow?"
Jim Bigerston - 4/20/2008 7:07:00 PM EDT -
We would not elect you president and so would never allow you to tell me who or what I can listen to. Why not spend your effort to lower gas prices
jay b kolb - 4/16/2008 12:57:00 PM EDT -
Mr. Brownback,
You are the epitome of a dirty politician.
Hope your letter to the FCC was worth the dirty money
you received from NAB.
Where were you when Exxon Mobil were merging?
Pubic official, huh? Thanks for looking out.
JSP - 4/12/2008 6:04:00 PM EDT -
I was already told by XM and Sirius that there would not be a need to buy additional equipment, oh by the way I have both subscribions and have had them for 3 years. Most the there equipment is not that expensive, this is a great deal for the consumer and these so called lawmakers who don't have a clue about what the public wants are only looking out for themselves. As a registered vote I can assure that whichever one votes agaisn't I surly will not vote for them and I will tell all my friends not to vote for them either.
Roy Deamer Jr - 4/12/2008 7:31:00 AM EDT -
Obviously,this Jerk doesn't care about the TRUE Satellite Radio customers. With both companies as one, they can focus on better units, better packages and less money wasted trying to outdo each other competing and focus on making the customer happier by providing better choices and packages. I think its one situation that two companies together and acting as one is better than fighting and the consumer is the one having o wait and wait and wait for the stupid FCC to make an easy choice, YES YES YES to the merger,at least the FCC can put Restrictions now. what if one of the companies purposely goes under and then there is only one company standing with NO RESTRICTIONS IN PLAY, THEN WHAT WILL THEY SAY THEN??????
Satellite is CHOICE , not NECESSITY, SO THEY KNOW THEY GOTTA KEEP PRICES AND CHOICES JUST RIGHT TO SURVIVE. monopolies are what Telephone and Cable and Utility companies are, so whos really looking out for us.
Brownback, goback to your dark hole where you came from and stop letting bribes and LOBBY money affect you soooooo much, maybe your corrupt ass is why you couldn't even get close to the Pres Running
-Peace_
phillip - 4/11/2008 1:34:00 PM EDT
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