FCC Chairman Kevin Martin will soon be circulating a proposed merger agreement between satellite radio providers XM and Sirius. The firms have agreed not to raise prices for three years, offering a smaller package, and opening up its manufacturing so there is competition for satellite radios. But it’s still a bit of a nail biter as to whether this will have the votes to pass.
I can remember the original auction for the spectrum to be used for satellite radio. The year was 1998. Several companies were vying for two licenses. The idea is that the two “winners” would compete. The world has changed in the last ten years. Plug-ins for iPods now grace more new cars than satellite radio. There is internet radio. The question the FCC will answer is whether that’s enough to make a merger of the XM and Sirius “in the public interest.”
