DoJ and FCC approval of the Sirius-XM merger is considered likely but not a slam dunk, judging from early readings by analysts and lawyers who follow the satellite industry. DoJ is expected to give the merger the closest scrutiny. House Telecom Subcommittee Chmn. Markey (D-Mass.) said the merger deserves close review. At the FCC, the International Bureau, which rarely handles high profile orders, will take the lead under new Chief Helen Domenici.
Wiley Rein & Fielding is back to being Wiley Rein, with Fred Fielding’s return to working as a counsel to the President. “It is business as usual in all other ways,” said managing partner Richard Wiley.
Satellite policy will be spurred another year of mergers in 2007, several industry sources said. But this year consolidation won’t be between fixed satellite services (FSS) giants, regulatory attorneys said: It will involve just about everybody else. Expect to see a merger push by XM and Sirius, a mobile satellite services (MSS) shakeout, and possibly an end-run by Liberty-controlled DirecTV and EchoStar, they said.
New FCC Media Bureau (MB) chief Monica Desai was praised by lawyers for an ability to quickly learn about the great breadth of telecom and communications issues that she has dealt with her 7 years at the FCC. Incoming International Bureau Chief Helen Domenici also won plaudits, as agency staffers said they were pleased with her selection. The appointments were announced late Mon. by Chmn. Martin (CD Jan 9 p9).
Gregory Vogt, ex-Wiley Rein & Fielding and FCC, leaves to set up own law firm in D.C… Cedar Point Communications names Chris Zanyk, ex-Nortel, managing dir.-Latin America… Nexstar names Louis Abitabilo, ex-WNEP Wilkes- Barre-Scranton, vp-gen. mgr. of Wilkes Barre-Scranton TV operations… New at IP Unity Glenayre following completion of merger: Arun Sobti, chmn.-CEO; Bruce Bales, pres.; Bob Swedroe, CFO; Sonny Bettis, CTO; Keith Bhatia, senior vp sales-Americas and gen. mgr.-Japan; Stan Little, senior vp- mktg. & business development; Piyush Modi, senior vp- engineering… Globix promotes Kurt Van Wagenen to CEO … Wash. Utilities & Transportation Comr. Patrick Oshie appointed to a 2nd UTC term … Promotions in European offices of NBC Universal International TV Distribution: Don McGregor, Carolyn Stalins to senior vp-sales liaison; Martine Meunier to vp-sales liaison… Ronald Del Sesto, who represents clients before the FCC and PUCs, becomes partner in D.C. office of Bingham McCutchen.
New partners at Wiley Rein & Fielding: Scott Delacourt, ex-deputy chief at FCC Wireless Bureau, now in Wiley’s communications practice; Eve Reed and Josh Turner also in the communications practice; Rod Thomas, litigator in the white collar defense and govt. Contracts practice; Eric Andreas, chemicals, safety & environment practice; Leslie Curran, franchise practice.
The video franchising proposal set for the Dec. 20 FCC agenda meeting is a top priority for FCC Chmn. Martin, he told a Thurs. Practising Law Institute Telecommunications Policy & Regulation conference. The proposal, which would make it easier for wireline entrants to provide video service like cable’s, deals directly with the “continual increase in cable prices,” Martin said. Other communications service prices have dropped, but there’s been an “almost 100% rise in cable prices” since 1996,” he told the group, calling the only brake on cable price rises competition from “wireline overbuilders.” Entry by more facilities-based video providers is “critical for broadband” buildout as well, he said. Delay caused by franchising authorities inhibits broadband infrastructure development, Martin told the group. Martin, who spoke in a “conversation” with communications attorney Richard Wiley, indicated he isn’t sure how parts of the franchising order will come out. “I hope we will be able to work through the issues,” he said. In answer to our post- session question, Martin said he never knows exactly how orders will play out in the week before an agenda meeting. But the bottom line is that he’s not concerned about the order passing, he said. But sources said the franchising item may be delayed to work out contentious issues. Some say there isn’t time to deal with both the franchising order and the AT&T-BellSouth merger right now. The franchising item probably will be pulled from the agenda, said a Commission official and industry sources. Among issues that may take require more consideration is the draft order’s provision that telcos don’t need to build out video systems to areas of towns they don’t already serve, we're told. An agency official said: “If it stays on the agenda this is going to be one of those where everyone stays here until 5 a.m. [on the morning of the meeting] haggling over the language.” -- EH, JM
Broadcasters face difficulty getting consumers to embrace what companies consider media consolidation’s benefits during the FCC’s media ownership review, 5 former commissioners told us. People get upset when they can’t find stories on topics that interest them amid a welter of radio, video and online content (CD Oct 25 p5), said Kathleen Abernathy. Consumers may blame media consolidation for that frustration, said the former Republican commissioner (2001- 2005).
Despite 12 years of GOP dominance in Congress and control of the White House since 2001, most of the communications sector’s trade associations and companies won’t be caught completely flat-footed by the Democrats’ reemergence as the party in charge in the House and Senate, sources said.
Broadcasters that go private would reduce their financial transparency, a phenomenon media activists said may subject such deals to scrutiny by parties fearing consolidation. More publicly traded companies are seeking to exit the business or be taken private as stock prices suffer from increased rivalry by Internet and other media (CD Oct 30 p3). Private firms need not disclose quarterly profit and other financial results under SEC rules.