Ashcroft Lobbies Atty. Gen. Gonzales Against XM-Sirius Merger
March 2, 2007 at 12:52 PM (PT)
Former Attorney General JOHN ASHCROFT, now a consultant and lobbyist, has written a letter to present Attorney General ALBERTO GONZALES voicing his concerns about the XM-SIRIUS merger.
The letter, echoing the NAB's arguments, suggests that "a thorough study of consumer demands and preferences would show that terrestrial radio stations should not be considered part of the satellite radio market for the purposes of the review of the current merger because they are not providing substitute content- content available in real time and available to consumers traveling market to market (not limited to a local market)... If these companies merge, no other entity can provide this content."
ASHCROFT also points to the rejection of the ECHOSTAR-DIRECTV merger as an appropriate precedent and raises the issue of the satellite radio companies' failure to develop the promosed "interoperable" dual-system receiver.