Friday, December 08, 2006

Sirius/XM Merger?

It is difficult to imagine the FCC signing off on a merger that would create a monopoly for satellite radio service.

EchoStar, the owner of DishNetwork was denied the opportunity to purchase DirecTV in 2002 because, as then-FCC chair Michael Powell stated it:

"The combination of EchoStar and DirecTV would have us replace a vibrant competitive market with a regulated monopoly. This flies in the face of three decades of communications policy that has sought ways to eliminate the need for regulation by fostering greater competition."
Of course, current FCC chair Kevin Martin dissented from the majority on that vote, so anything is possible.