No Existing FCC Rule Blocks Merger, Sirius and XM Say

NO EXISTING FCC RULE BLOCKS MERGER, SIRIUS AND XM SAY
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
In a filing with the Securities and Exchange Commission on Wednesday that announces their intention to merge, satellite companies Sirius and XM say there is not a FCC rule that bars the merger. While opponents of the merger have said the FCC said that "one licensee will not be permitted to acquire control of the other" when it created the satellite radio licenses in 1997, the companies argue that the language was not codified. They say it is merely a policy statement that can be changed, rather than "a binding FCC regulation." Current FCC rules do not prohibit the transfer of the licenses, they argue. B&C reports that FCC Chairman Martin shared this from the 1997 order establishing satellite radio: "Transfers. We note that DARS licensees, like other satellite licensees, will be subject to rule 25.118, which prohibits transfers or assignments of licenses except upon application to the Commission and upon a finding by the Commission that the public interest would be served thereby. Even after DARS licenses are granted, one licensee will not be permitted to acquire control of the other remaining satellite DARS license. This prohibition on transfer of control will help assure sufficient continuing competition in the provision of satellite DARS service."
http://www.broadcastingcable.com/article/CA6426534.html?display=Breaking+News

* XM, Sirius: What FCC Merger Ban?
http://www.multichannel.com/article/CA6426555.html?display=Breaking+News
* XM and Sirius File Merger Application With FCC
http://www.washingtonpost.com/wp-dyn/content/article/2007/03/21/AR2007032101997.html

* Sirius, XM to offer reduced price plan after deal
Sirius Satellite Radio and XM Satellite Radio expect to offer a lower-priced package consisting of fewer channels after the companies combine, Sirius said on Wednesday. "After the merger, customers may elect to receive fewer channels at a monthly price lower than $12.95; substantially similar programming at the existing $12.95 price; or more channels ... at a modest premium to the cost of one service, and considerably less than the cost of subscribing to both services," Sirius said.
http://www.reuters.com/article/technologyNews/idUSWEN562620070321

* FCC's Martin Likes Sound of Karmazin Rebate Proposal
FCC Chairman Kevin Martin said Wednesday that Mel Karmazin's proposal to reimburse subscribers for blocked adult channels "may be a good idea" with the caveat that he has yet to study it.
http://www.broadcastingcable.com/article/CA6426602.html?display=Breaking+News