Kerry Tells FCC: Don't 'Rubber Stamp' DOJ Decision On XM-Sirius

[JI7]

<In a letter to FCC Chairman Kevin Martin, Sen. John Kerry (D-MA) notes that, although the Department of Justice has unconditionally approved the merger of XM Satellite Radio and Sirius Satellite Radio, "serious concerns remain as to how this merger will impact consumers if it is permiited to go forward."

Kerry points to the 1997 order that established satellite radio service, which blocks one satellite licensee from acquiring the other in order to "assure sufficient continuing competition" in satellite radio. Kerry writes, "To the extent that this merger would permit the only two entities authorized to provide satellite radio service in the United States to merge, it would seem to directly contradict the intent of the commission in establishing this service."

Though Kerry acknowledges that the financial incentives for XM and Sirius to merger are "indisputable," he says, "It does not follow, however, that it would be in the public interest for these two competing entities to merge."

Kerry urges Martin "to resist rubber stamping the Justice Department's determination that sufficient competition exists." He continues, "Should the FCC determine that this merger does indeed serve the public interest, I urge you to consider appropriate conditions that will effectively protect the American consumer from what could prove to be an entity with strong monopoly power within the digital audio radio market." >

http://www.radioink.com/HeadlineEntry.asp?hid=141650&pt=todaysnews

[ProudToBeBlueInRhody]

1. You are wrong, John

It's a niche piece of entertainment, and those of us consumers who currently have it, want the merger.

I guess he wants to wait until someone who's really concerned about the "public interest" like NEWSCORP gobbles up the two drowning companies for pennies on the dollar.

[soothsayer]

2. Kerry gets alot of money from the National Association of Broadcasters

Let the stinkin' merger go thru already please. I want baseball!

[karynnj]

4. link please

Kerry has been a leader in insisting on diversity in various media. His actions last year INCREASED the outlets providing out of area baseball.

In addition - why the smear. Kerry has NEVER taken PAC money - he is the only Senator elected 4 times to have done so. You can disagree with his position, but it is shameful that you attack his integrity.

[KharmaTrain]

3. Satellite Radio Has Been A Bust...But This Merger Is A Done Deal

This merger is a bailout for years of bad money spent after bad...from overcosts in their start-ups to overpaying for "talent" to having horrendous retention and renewal rates.

In '97, many felt satellite was the future of radio...doing for it what cable did for TV. People would flock to get hundreds of channels and be willing to pay for it. They were wrong. Subscription numbers never met projections and sales have been flat for a long time. Billions have been lost and now the only way XM and Sirius can survive is to merge or both will fold.

Consider this merger a done deal with Martin ramrodding things through the commission. I'd far prefer Senator Kerry to follow through on his promise to overturn the dereg that was crammed down our asses last December (and he said he would hold hearing...I still haven't heard of any) that involved the public airwaves...allowing even greater consoldiation of the radio a vast majority of people listen to (but in diminishing numbers)

Satellite radio is now considered a "boutique" service. Great for truck drivers or sports addicts who need to hear every game...but it's been a bust-out as a mainstream service.