FCC Decision on XM-Sirius Merger Delayed
A long-awaited FCC vote on the XM-Sirius merger won’t be completed this week and it may take several weeks for all the commissioners to vote, we've learned. FCC Commissioner Deborah Tate has left on a trip to Africa without voting on the merger, and several issues are unresolved. Tate has emerged as a swing vote on the merger. FCC Chairman Kevin Martin three weeks ago circulated among his fellow commissioners a draft order to allow the merger. Sirius and XM agreed to merge a year ago February.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Tate initially was poised to oppose the merger order as circulated. But in recent weeks her opposition has softened, as attorneys for XM and Sirius have dealt with her objections, said industry and FCC sources. The commission record in the proceeding includes ex parte filings on several meetings between Tate and attorneys for XM and Sirius. Among those in to see Tate was Sirius CEO Mel Karmazin, who brought former FCC Chairman Richard Wiley to a meeting June 26.
Several issues still trouble Tate, sources said Monday. These include how to address iBiquity’s demand that the FCC require HD Radio reception in all satellite radio receivers with AM/FM tuners to level the playing field between satellite and terrestrial digital radio.
Tate and others at the FCC also have concerns about whether the FCC must take enforcement action against XM for operating 240 of its 800 or so terrestrial repeaters outside FCC rules, or whether the agency can put off a decision while committing to act on the violations. Another issue is whether XM and Sirius will promise not to run ads through local repeaters.
Other commissioners have been waiting to see how Tate votes, meanwhile refraining from voting electronically. Commissioner Robert McDowell is still looking over the order but is expected to vote to approve the merger. The FCC’s two Democrats, Michael Copps and Jonathan Adelstein, have expressed concerns. Tate could vote on the order electronically by instructing one of her advisors to use the FCC voting system, but she’s not expected to do so.
Meanwhile, attorneys general Robert Cooper of Tennessee and Richard Blumenthal of Connecticut discussed their concerns with merger with Tate on a phone call Friday. They were joined by aides from counterpart offices in a dozen other states. Several urged rejection of the merger, said an ex parte letter filed at the FCC. “The States explained that as enforcers of both antitrust laws and consumer protection laws, they have concerns with the proposed merger in light of the important role played by satellite radio as a national source of information and entertainment for consumers,” the letter said. “The States explained that genuine competition creates competitive pressure that spurs technological innovations, diverse programming, lower prices and creative marketing options for the benefit of consumers.”