News for 'XMSR' - (=DJ Sirius-XM Debate Affects Wider Media Consol:
FCC's
McDowell)
By Corey Boles
Of DOW JONES NEWSWIRES
(This article was originally published Thursday)
WASHINGTON (Dow Jones)--The debate over whether Sirius Satellite
Radio
Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) should be
allowed
to merge could affect the larger question of media consolidation in the
U.S., according to FCC Commissioner Robert McDowell.
Speaking to reporters after an appearance at a forum hosted by the
National Broadcasters Association, McDowell said that how the market is
defined by authorities in analyzing the satellite radio merger question
could prove significant to how competition in the overall audio media
market is defined.
"If we say that XM and Sirius shouldn't merge because there's not
sufficient competition, does that mean there's not sufficient
competition
overall in audio? It depends on how you define the market," said
McDowell.
The Republican commissioner said he wasn't taking a position on
whether
the merger should be approved at this early stage in the process, but
said
that conclusions could be drawn about the wider market.
Executives at Sirius and XM have argued that their merger should be
allowed to proceed because they don't just compete with each other, but
with all other forms of radio media.
The two companies are the only licensed satellite radio firms, and
opponents say the merger would create a government-sanctioned monopoly.
McDowell said if the Department of Justice's antitrust unit, which
would
first have to approve the deal, and then the Federal Communications
Commission were to decide there is a duopoly currently, then it could
affect the agency's thinking on competition generally in the market.
The issue of media ownership is one that provokes considerable
interest
within Congress as lawmakers are keen to be seen as defending local
television and radio stations.
"The issue of media consolidation crosses partisan lines and has
united
members of both sides of the aisle in the past few years against
attempts
by the FCC to relax media ownership caps in a single market," said
telecom
analyst Jessica Zufolo of Medley Advisors, in a research note published
Thursday.
The FCC is conducting a series of nationwide hearings into how the
rules
imposing caps on the number of radio and television stations that can
be
controlled by one company should be reformed. It still has at least
three
more hearings to hold and is not expected to come to any decisions
until
at least the end of the year.
-By Corey Boles, Dow Jones Newswires; 202-862-6637;
corey.boles@dowjones.com
(END) Dow Jones Newswires March 02, 2007 07:32 ET (12:32 GMT)
Copyright (c) 2007 Dow Jones & Company, Inc.- - 07 32 AM EST 03-02-07
Source: DJ Broad Tape
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