XM-Sirius Still Concerns Attorneys General
States Attorneys General Continue to Oppose Satellite-Radio Merger
By John Eggerton -- Broadcasting & Cable, 5/9/2008 6:45:00 AM
States attorneys general continued to register their concerns with the proposed XM Satellite Radio-Sirius Satellite Radio merger.
The attorneys generals met with Federal Communications Commission member Jonathan Adelstein this week to talk about the lack of an interoperable radio that would work with both services, as well as their general concern that "significant harms" would result from "the loss of a direct competitor.”
That is according to a letter from the attorneys general of Washington state and Connecticut outlining the meeting, which was distributed Thursday to reporters by Adelstein's office.
Eleven attorneys general registered their disapproval of the Justice Department's decision not to apply any conditions to the possible merger, arguing that it should have at least required a la carte pricing or divestiture of sufficient spectrum to create a third satellite company to compete with the new, merged entity.
In the meeting with Adelstein, the attorneys general said they supported the carve-out.
Adelstein shared that concern, saying, "The attorneys generals have a number of serious concerns. They have a feeling that the Justice Department did not pay proper deference to their concerns when it issued its opinion … In this case, those concerns were dismissed and there was no proper audience given to the attorneys general. I think it is important that the FCC, after such dismissive treatment by the AGs, take extra consideration on the very legitimate concerns that the attorneys generals are raising."
There is no sign of an XM-Sirius merger decision out of the FCC anytime soon. Adelstein said he didn't have any idea. An FCC source said a key sticking point remained whether and how sufficient spectrum could be carved out to create a competitor.
XM and Sirius have already twice delayed deadlines for unwinding the deal absent government approval, and they have now put it on an automatic, two-week extension plan unless one or the other decides to back out.
Asked how he planned to vote on the merger, Adelstein said it would depend on how it was conditioned.
FCC chairman Kevin Martin was asked Thursday whether he, too, would meet with the attorneys general after there had been a suggestion that he declined to meet with them.
"I'm not sure who told you I declined,” he said. “If they asked for a particular date that I was unavailable, that may have happened, but I'm not aware that we have declined, and of course, I meet with all kinds of parties who are interested in talking about any of the proceedings in front of us."
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It seems obvious that some or all of the FCC Committee members are lobbying to keep their jobs in a Democratic congress. Seeing two companies in business more than nine years losing .9 billion dollars per year (combined) certainly isn't rocket science as to what to do.
This is a very easy decision if you strip the politics out of it.
Approve the Merger already. Cut the politics and positioning FCC.
Jake Turner - 5/11/2008 7:45:00 PM EDT -
Who thinks, after 15 months of delay, that some or most of the FCC is being paid off? .... For chrissakes, you have no idea after 420 days? ... How incompetent do you have to be to work at the FCC?
An embarrassment to thinking Americans.
Keep delaying and there will only be one anyhow. XMSR will be toast soon.
Nice Job Kevin "Brownie" Martin.
Plowboy - 5/11/2008 7:37:00 PM EDT -
I work at Sirius, where people are being let go in droves, and many offers of employment are being rescinded. Why? Budget.
All the money tied up in litigation regarding this merger could have been better spent.
But what do the AG's of these states do?
They wait, for over a year, to voice their "concerns".
As did other "public servants" (i.e. congressmen).
Our governments these days, both state and federal, a joke.
So, I'd like to thank all of you folks who are holding up this deal.
I remain unemployed, in full-time capacity, strictly as a direct result of your last minute Bulls**t.
Thank you so much.
I will now resume eating my Raman Noodle dinner.
And no, this post is no joke.
Anonymous - 5/11/2008 9:34:00 AM EDT -
Hey John, I see you mentioned in your article that "more than 1 dozen AG's" have argued against this merger, however that is incorrect. Only 11 AG's have publically stated that they are against the merger.
I'm not looking to debate over this, but it is an incorrect fact that has been repeatedly reported by the media over and over... but it doesn't make it true.
There were 11 AG's that sent a letter to the FCC commissioners back in March; then a follow up letter signed by 4 of the original 11, was sent a couple weeks ago. For some reason, the media thought that this was an additional 4 -- however, it is not. In fact, there is a question of how come only 4 of the original 11 signed this second letter. The first letter expressed concern over the merger, the second letter suggested a resolution -- however, only 4 of the original 11 signed it.
Regardless, there are not "more than 1 dozen" AG's that have filed a letter against the merger with the FCC.
homer985 - 5/9/2008 1:09:00 PM EDT -
I realize the FCC has to do their due diligence, but it is becoming a joke at this point and very unprofessional. Keeping these two companies in limbo for this long and not making this one of their top priorities is ridiculous.
Steve Smith - 5/9/2008 11:45:00 AM EDT
Another Extension for XM-Sirius Merger
04/30/2008XM/Sirius: Adelstein Proposes New Conditions
07/18/2008Adelstein Flexible on XM-Sirius Conditions
07/21/2008XM-Sirius Merger Approval Close?
06/30/2008
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