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FCC Releases Final Order on Sat Radio Merger
The Federal Communications Commission released its final order on the merger between XM and Sirius late Tuesday, a 109-page document that contained few surprises.
The order contains details about conditions imposed on the merger, including a three-year price cap on programming packages, new programming options and a la carte selections for customers, and the introduction of interoperable radio receivers capable of getting both satellite radio services. There's also are stipulations about opening up capacity to minority and non-commercial programmers.
Nonetheless, there were other items of interest found in the document.
The matters included discussion of a proposal that would require a merged satellite radio company to relinquish some of its spectrum, including as much as half of the spectrum controlled by a single entity. XM and Sirius fought the proposal. And the FCC sided with the satellite radio companies, stating in its order that the public interest would not be served by requiring the merged entity to divest a portion of spectrum.
There also were pushes for a ban on local programming and local advertising provided by a merged satellite radio company. The FCC rejected the proposals, which were mainly backed by broadcasters, arguing that the satellite radio merger will not harm the ability of local broadcasters to air locally oriented programming.
Also, the order detailed the satellite radio companies' voluntary commitment to provide service to Puerto Rico. In its document, the FCC said it strongly encouraged the merged entity to expand service to Alaska, Hawaii, the U.S. Virgin Islands and other territories when technically feasible and economically reasonable for such an expansion.
The FCC formally approved the XM/Sirius merger on July 25, and released some details about the approval process the following week.
The Federal Communications Commission released its final order on the merger between XM and Sirius late Tuesday, a 109-page document that contained few surprises.
The order contains details about conditions imposed on the merger, including a three-year price cap on programming packages, new programming options and a la carte selections for customers, and the introduction of interoperable radio receivers capable of getting both satellite radio services. There's also are stipulations about opening up capacity to minority and non-commercial programmers.
Nonetheless, there were other items of interest found in the document.
The matters included discussion of a proposal that would require a merged satellite radio company to relinquish some of its spectrum, including as much as half of the spectrum controlled by a single entity. XM and Sirius fought the proposal. And the FCC sided with the satellite radio companies, stating in its order that the public interest would not be served by requiring the merged entity to divest a portion of spectrum.
There also were pushes for a ban on local programming and local advertising provided by a merged satellite radio company. The FCC rejected the proposals, which were mainly backed by broadcasters, arguing that the satellite radio merger will not harm the ability of local broadcasters to air locally oriented programming.
Also, the order detailed the satellite radio companies' voluntary commitment to provide service to Puerto Rico. In its document, the FCC said it strongly encouraged the merged entity to expand service to Alaska, Hawaii, the U.S. Virgin Islands and other territories when technically feasible and economically reasonable for such an expansion.
The FCC formally approved the XM/Sirius merger on July 25, and released some details about the approval process the following week.
