NAB Asks FCC to Stop the Clock on XM-Sirius Merger

By John Eggerton -- Broadcasting & Cable, 10/10/2007 6:19:00 PM

The National Association of Broadcasters asked the Federal Communications Commission to pull the plug on its 180-day shot clock for considering the XM Satellite Radio-Sirius Satellite Radio merger to give the NAB time to go through documents it said it is getting through a Freedom of Information Request filed in March.

THe NAB made the request to stop the clock Tuesday -- the same day some Wall Street analysts predicted that the Justice Department would OK the deal by the end of November and predicted that the FCC would follow suit.

In its FCC filing, the NAB said the FCC's Enforcement Bureau has said that some documents related to FM modulators and transmitters would be supplied to the NAB, but they have not yet been released because they are subject to various reviews. The trade group added that the documents relate to "serious apparent wrongdoing by XM and Sirius 'executive and senior-level employees' regarding the operation of FM modulators/translators and/or terrestrial repeaters."

Specifically, the NAB asked the commission to "formally toll its 180-day 'time clock' until the NAB has a reasonable opportunity to review and supplement the record."

Braodcasters have been battling the proposed merger as a monopoly and a government bailout of profligate programming spending, while the satellite-radio companies said the merger will create a stronger competitor in an audio-delivery market that includes terrestrial broadcasters, cable and MP3 players.

Responding to the FCC petition, XM and Sirius said in a joint statement: "The NAB opposes the merger of XM and Sirius to protect AM/FM radio from competition, not to protect consumers. As more and more consumers voice their support for the merger, the more fearful of increased competition the NAB becomes and the more desperate their actions in response. The NAB's allegations are unfounded and their recent filing is just an attempt to stall the process. We look forward to continuing to work with the FCC and are confident that they will weigh the transaction on its merits, recognize that it is in the public interest and approve the merger by the end of the year."

"There is nothing 'unfounded' about the NAB's so-called allegations,"  countered NAB executive vice president Dennis Wharton in his own statement. "XM and Sirius have disclosed in public documents that they knowingly and willfully violated interference and terrestrial-repeater rules. The central question now is whether XM and Sirius are rewarded for this demonstrable lack of candor with tough penalties or a government-sanctioned monopoly."