From WP:
XM-Sirius Vote Hangs on New Conditions
Adelstein Cites Pricing, Minority Programming
By Cecilia Kang
Wa****ngton Post Staff Writer
Saturday, July 19, 2008; D01
A long-delayed merger between the nation's two satellite radio
providers may be facing another hurdle after a key regulator yesterday
told the companies they would need to make stronger concessions on
pricing and minority programming to gain his sup****t.
Federal Communications Commission member Jonathan Adelstein, a
Democrat, who said he discussed his plan with XM and Sirius satellite
radio this week, could hold the swing vote in the five-member
commission, with two votes already cast in favor of the deal.
He told the companies that they would have to agree to cap prices for
their service for six years after the merger, set aside one-quarter of
their radio spectrum for noncommercial and minority programming and
equip satellite receivers with high-definition over-the-air radio
signals to ensure that traditional radio will be able to compete with
the monopoly.
Adelstein has also told XM of the District and Sirius of New York that
they would have to agree to an independent monitor to ensure they live
up to the agreement.
Sirius and XM declined to comment on Adelstein's proposal.
The companies announced their merger plans more than a year ago, but
the union has been held up by labored regulatory reviews by the
Department of Justice and FCC. The Justice Department passed the merger
last March, saying the satellite radio operators face increased
competition from Internet radio, terrestrial radio and iPods so a
merger would not harm consumers.
Yet dozens of lawmakers have expressed concern about the merger and
several state attorneys general have asked the FCC to block the deal,
saying the combined company would hurt consumers who could face higher
prices and fewer choices with the monopoly satellite radio provider.
Under Adelstein's proposal, the companies would have to disclose
technical specifications so that independent radio receivers could
operate their programming and would have to promise not to pass on
increased programming costs to customers.
"If they are allowed to merge, they would have more spectrum than the
AM and FM bands combined," Adelstein said. "With that much market
power, we need to make sure consumers are the winners and not just the
company."
Adelstein's plan would go beyond that announced last month by FCC
Chairman Kevin J. Martin, a Republican, who voted to approve the merger
after XM and Sirius agreed to offer a la carte programming, cap prices
for three years, provide interoperable receivers for both technologies
and set aside 8 percent of their capacity for minority-owned and
noncommercial programming.
Republican Commissioner Robert McDowell has voted in favor of the
merger. Republican commissioner, Deborah Tate, has not indicated how
she will vote on the merger. There are three Republican and two
Democratic commissioners at the agency.
Earlier in week, Rep. Edward J. Markey (D-Mass.), chairman of the House
subcommittee for telecommunications and the Internet, sent Martin a
letter asking for tougher restrictions, similar to those proposed by
Adelstein, placed on the companies if their merger is approved.
Clyde Ensslin, a spokesman for Martin said he would work with other
commissioners to advance the merger. "He's always open to changes
suggested by his fellow commissioners in order to get three votes
needed for approval," he said.
My comments:
3 R. and 2 D. It's a done deal. Forget it. :/
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