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FCC Dems Have Strong Words on Sat Radio Merger
There were strong words from the two Democrats at the Federal Communications Commission concerning Friday's late night approval of the merger between XM and Sirius.
By a 3-2 vote along party lines, the agency cleared the billion-dollar transaction with conditions. Late Monday, Jonathan Adelstein and Michael Copps, the two dissenters on the merger clearance, outlined their objections to the deal.
For Copps, his opposition was focused on FCC policy and fostering competition.
"That preference for competition is why the commission has almost never permitted a single commercial licensee to hold all of the spectrum allocated to a particular service, and why - until today- the commission required that there always be at least two satellite radio licensees," Copps said. "I understand why the companies would prefer to escape the rigors of competition. What I cannot understand is why the majority thinks consumers will be better off without it."
Adelstein used part of his statement to comment on the consent decree facing XM and Sirius, in which the combined companies agreed to pay $19.7 million to settle enforcement issues at the FCC targeting their use of terrestrial repeaters and FM modulators found in receivers.
"In light of such unprecedented violations, it is stunning that the commission was poised to approve the merger of XM and Sirius before resolving these enforcement matters. It is inconceivable to me that we would even consider approving such a merger with such a large and serious number of outstanding violations unresolved," Adelstein said.
The Democratic commissioner also complained about the lack of commission work on issues surrounding DARS spectrum and the Wireless Communications Service.
The FCC's Republican majority, made up of Chairman Kevin Martin and Commissioners Deborah Taylor Tate and Robert McDowell, gave the merger proposal enough votes for clearance.
"Competition in the audio market has grown substantially in the past few years," said McDowell. "Barely one generation removed from AM and FM radio and vinyl albums, we now have a still vibrant AM/FM dial, full of music, news and talk radio of all stripes, HD radio with its multicast streams of content, MP3 players, internet radio and much more.
"When discussing this merger, it is important to keep in mind that satellite radio - both XM and Sirius combined - comprises only five percent of that audio marketplace," McDowell added.
There were strong words from the two Democrats at the Federal Communications Commission concerning Friday's late night approval of the merger between XM and Sirius.
By a 3-2 vote along party lines, the agency cleared the billion-dollar transaction with conditions. Late Monday, Jonathan Adelstein and Michael Copps, the two dissenters on the merger clearance, outlined their objections to the deal.
For Copps, his opposition was focused on FCC policy and fostering competition.
"That preference for competition is why the commission has almost never permitted a single commercial licensee to hold all of the spectrum allocated to a particular service, and why - until today- the commission required that there always be at least two satellite radio licensees," Copps said. "I understand why the companies would prefer to escape the rigors of competition. What I cannot understand is why the majority thinks consumers will be better off without it."
Adelstein used part of his statement to comment on the consent decree facing XM and Sirius, in which the combined companies agreed to pay $19.7 million to settle enforcement issues at the FCC targeting their use of terrestrial repeaters and FM modulators found in receivers.
"In light of such unprecedented violations, it is stunning that the commission was poised to approve the merger of XM and Sirius before resolving these enforcement matters. It is inconceivable to me that we would even consider approving such a merger with such a large and serious number of outstanding violations unresolved," Adelstein said.
The Democratic commissioner also complained about the lack of commission work on issues surrounding DARS spectrum and the Wireless Communications Service.
The FCC's Republican majority, made up of Chairman Kevin Martin and Commissioners Deborah Taylor Tate and Robert McDowell, gave the merger proposal enough votes for clearance.
"Competition in the audio market has grown substantially in the past few years," said McDowell. "Barely one generation removed from AM and FM radio and vinyl albums, we now have a still vibrant AM/FM dial, full of music, news and talk radio of all stripes, HD radio with its multicast streams of content, MP3 players, internet radio and much more.
"When discussing this merger, it is important to keep in mind that satellite radio - both XM and Sirius combined - comprises only five percent of that audio marketplace," McDowell added.