WASHINGTON DC, June 29, 2007 - Satnews Daily - The U.S. Federal Communications Commission (FCC) has issued a carefully worded consultation document seeking public comment on whether it should uphold a 1997 decision that forbids the merger of satellite radio rivals Sirius Satellite Radio, Inc. and XM Satellite Holdings, Inc.
Traditionally, public consultation is a move taken by the FCC if it were inclined towards a proposed merger such as that between Sirius and XM. In this case, however, the consultation document gives no indication as to FCC’s thinking on the merger. The FCC has avoided any statements that might give clues as to where it stands on the proposed merger but instead refers to arguments made by the two satellite radio companies.
When the FCC awarded broadcast licenses to Sirius and XM, it sought to ensure competition by stipulating that neither company was permitted to acquire the other's license. In an SEC filing in March, however, Sirius said the policy is unnecessary because the preservation of two separate satellite radio licensees is no longer required to help assure sufficient continuing competition.
Both Sirius and XM dispute the ban, claiming it is only a policy statement rather than a binding rule because it was not officially codified in the Code of Federal Regulations. They ask the FCC to ignore or alter the prohibition because a merger will serve the public interest.
