XM Drops Bid For WCS Wireless
May 22, 2006 at 4:24 PM (PT)
XM SATELLITE RADIO has dropped its proposed purchase of WCS WIRELESS. The deal to acquire the wireless company and its spectrum licenses, originally announced last JULY 13, was terminated because, said XM Chairman GARY PARSONS, "with the inability to obtain the necessary government approval for this transaction in a timely manner, WCS WIRELESS needed to pursue alternatives for its spectrum with greater certainty of regulatory approval."
The NAB, which opposed the deal on the grounds that it was a backdoor way for XM to expand its local programming in contravention of FCC restrictions on satellite radio, said in a statement from spokesman DENNIS WHARTON that it "is obviously pleased to learn that XM has dropped plans to buy WCS WIRELESS. We have long been concerned that the two satellite radio companies are circumventing their commitment to provide national service with local program initiatives. NAB continues to support legislation that would hold both XM and SIRIUS accountable to and in compliance with the FCC licenses they were granted."