XM, Sirius Merger Approved by FCC

We've been detailing the merger between the two ruling satellite radio networks for more than a year now, and it seems that now, finally, the two will be joined. The FCC has ruled that the companies can officially merge, but with a few stipulations that should benefit consumers.

First, the new company must cap prices for its first three years of operation. It must also allow customers to choose the channels they want. Package prices must be reduced for this a la carte offering, and new radio hardware must be made available that can receive the new hybrid network.

Sirius/XM said it is already working on radios that will receive both signals and is paying fines of almost $20 million for current receivers on the market that don't comply with FCC regulations.

As of now, we haven't heard from any automotive manufacturers — almost all have aligned with one company or the other — about this deal's impact on them.

FCC Approves XM-Sirius Merger (TheStreet)

Comments

I hate the package idea......that's one of the things I loved about Sirius is the fact that I got eveything for one low price. This is going to suck.

I hate the package idea......that's one of the things I loved about Sirius is the fact that I got eveything for one low price. This is going to suck.

[Red]

With no more competition in the satellite radio realm, what stops them from sneaking more and more commercials into the different channels? Cable TV was sold as a "commercial free" service, and after lots of people signed up, they added commercials, and now you pay a monthly fee and sit through nearly 50 percent advertising. Right now satellite radio is quite a good value, but at the first sign of increased advertising, it will be adios to XM-Sirius.

[Zerf]

If this merger requires a hardware change for the new network I simply will stop subscribing. Interesting how they have to pay a fine for the current receivers on the market that do not comply but that doesn't really help the consumer out.

[Adrock]

The fines are an outside matter related to repeater towers, not radios, that the government has been trying to get from both companies. The merger approval includes the satellite companies complying with the regulations and paying back fines.

Existing satellite radios will still be able to get only one of the two services, but there is nothing stopping them from increasing the channels on either individual service by rebroadcasting from the other service. In other words, you don't need to buy a new radio.

The package idea is a-la-carte and the price being bandied around is something like 5.99. There will still be FULL options, and given the lock in on the prices, you still will pay at most 12.99/mo for the next 3 years.

Regarding competition, satellite radio is in the radio market, not the satellite radio market. If people don't like commericials, they can dump their contracts and go back to FM.