XM, Sirius Commission Analysis By Former FCC Commissioner; Release Support Letter From NAACP
June 28, 2007 at 7:57 AM (PT)
XM SATELLITE RADIO and SIRIUS SATELLITE RADIO have commissioned a report from former FCC Commissioner HAROLD FURCHTGOTT-ROTH that supports the proposed satellite radio merger by concluding, "American consumers have a wide and rapidly expanding range of choices for communications services that compete with XM and SIRIUS. Additionally, these competitive choices discipline the prices that XM and SIRIUS charge subscribers today and will continue to do so regardless of whether the firms merge. I believe that government agencies should afford these companies the flexibility to respond to rapidly changing market conditions."
FURCHTGOTT-ROTH's study makes the claim that "nearly all of the programming available via satellite radio can be obtained elsewhere. In fact, a single internet device can offer many communications services including those offered by XM and SIRIUS." He adds that the satellite radio business "has a relatively small presence in comparison to other comparable communications services," which he defines as including phones.
FURCHGOTT-ROTH was paid for the study by SIRIUS and XM.
NAACP Supports Merger
SIRIUS and XM also announced the endorsement of the NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE (NAACP) for their pending merger.
In a letter to the FCC, NAACP Director HILARY SHELTON affirmed, "We are convinced that the pending SIRIUS-XM merger will be a positive development for consumers. More diverse, accessible and appealing options at lower prices in satellite radio will help further expand the reach of this medium."