Consumer Groups Ask FCC To Reject XM-Sirius Merger
November 27, 2007 at 5:41 AM (PT)
The CONSUMER FEDERATION OF AMERICA, CONSUMERS UNION and FREE PRESS have filed comments with the FCC calling on the Commission to reject the merger of XM SATELLITE RADIO and SIRIUS SATELLITE RADIO.
"The proposed XM-SIRIUS merger is not in the interest of American consumers," said CFA Director of Research Dr. MARK COOPER. "Leaving one company to monopolize the satellite radio industry would result in higher prices and fewer choices -- with no foreseeable public benefit."
"The companies fail to make the case for ending the explicit prohibition on mergers between satellite licensees," said CONSUMERS UNION VP of International and Federal Affairs GENE KIMMELMAN. "The Commission should not abandon the fundamental principles that have guided its policies for the past decade to approve the deal."
"The Commission should reject this merger," added FREE PRESS Policy Director BEN SCOTT. "A license to use the public airwaves does not come with an entitlement to monopoly profits -- it carries with it the obligation of public service."