Markey Tells FCC XM-Sirius Merger Needs Conditions

House Telecommunications & Internet Subcommittee Chairman Urges Federal Communications Commission to Closely Scrutinize Satellite-Radio Deal

By John Eggerton -- Broadcasting & Cable, 3/24/2008 5:17:00 PM

House Telecommunications & Internet Subcommittee chairman Ed Markey (D-Mass.) said the Department of Justice's approval of the XM Satellite Radio-Sirius Satellite Radio merger without conditions was par for the course, but he told the Federal Communications Commission it should aim for more.

“The Bush administration has apparently never seen a telecommunications merger it doesn’t like," Markey said in a statement. "Its decision to approve the XM-Sirius merger without conditions is therefore unsurprising."

But he suggested that it would be an unpleasant surprise if the FCC followed suit.

“If the Federal Communications Commission, after completing its analysis and consideration of the proposed merger, decides to approve it, I urge the FCC to appropriately condition any such approval to ensure consumer welfare with respect to long-term service plans and pricing, as well as equipment compatibility and pricing,” Markey said.

“In addition, the commission should take action to ensure that the public-interest values of diversity and localism are fulfilled with respect to satellite-radio service in a manner consistent with congressional precedent, as Congress and the FCC did with respect to satellite-television services,” he added.

Markey held a hearing on the proposed merger one year ago this month at which satellite and terrestrial broadcasters squared off and Sirius CEO Mel Karmazin promised no price increases.