Attorneys General Lobbying Against XM-Sirius License Transfer 28 comments
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In addition to an increase in public and ex parte filings (primarily a result of Monday's DOJ approval), the FCC is now being lobbied directly by 11 state attorneys general to essentially impose strict conditions, if not outright deny, the license transfer in the Sirius (SIRI)/XM Satellite Radio (XMSR) merger. AGs from the eleven states sent this letter to FCC Commissioner Martin expressing their concerns and requests for conditions to be imposed by the federal regulator.
Normally, AG interventions are perceived as mostly publicity and generally harmless to the timing and mechanics of a merger transaction. One or two AGs becoming involved rarely has any substantial impact on any given deal. However, a consortium of AG's like this one could easily influence and impact the pending FCC review beyond what the companies currently anticipate.
The AG situation only increases the pressure the FCC must now feel as a result of the DOJ's non-action last week. The entire onus of regulatory enforcement, in this case and future high-profile communications merger, is now squarely on the shoulders of the FCC, and particularly Chairman Martin. Thus, it comes as no surprise that the final decision has continued to encounter delays. Nor should it be a major revelation that intervenors continue to meet the FCC and/or submit filings in opposition or demanding a variety of substantial conditions.
It is impossible to suggest that the FCC will actually take the unprecedented action of declining the license transfer after DOJ consent. While a decline outcome is technically possible -- and this merger certainly represents a clear opportunity to do so -- the current leadership of the FCC is simply not the type to take this sort of extraordinary measure.
However, as this is a glaring opportunity for the FCC to establish itself as a legitimate merger regulator in the future, it would not be terribly surprising to see conditions imposed that go well beyond what the companies seem inclined to accept. The companies stated in the past the spectrum divestitures are "not on the table", but it may indeed be a concession of this magnitude that the FCC demands here. This would naturally require a great deal of negotiation between the regulators, the companies, and third parties, and this in turn would naturally translate into further delays.
Furthermore, if the FCC does indeed view this transaction as the defining merger-related enforcement action under the current leadership, the severity of the conditions could conceivable force the companies to re-consider the rationale of the transaction. This is not perceived as a highly likely outcome, but it certainly can not be discounted given the circumstances of this proposed merger.
Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.
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It isn't a simple, "you take this or else" situation. That's not how democracy works in this instance. Just like they could have made the justice department defend (in court) a decision to prevent the merger, they can also challenge key disputes in a court of law if Martin and the FCC attempt to cut their nuts off.
The FCC is not an omnipotent body to Americans, and or, American companies. They cannot impose their will without being subject to due process. It's how America works.
And they know what a "Discovery" process would mean for the people who seek opposition. There are worms stuck throughout that piece of wood. And none of the opposition wants to go there.
At any rate, wild concessions are in fact challengable, which is why Martin needs to get this right on the first pass.
You'll probably only see demanded a la carte choices with a couple being frozen out a few years, and some public access stations (maybe two or three).
They won't make it carry HD radios unless all HD radios also are built to accomodate satellite, as that is a for profit venture.
General price controls and/or a taking of spectrum could both be challenged. As much as voiced opposition wants to play that card.
Next Friday is the day.
As already suggested their motivations are political in nature and have nothing to do with seeking justice for their state's consumers but rather seek profit for the companies supporting their elections.
Sirius and XM have invested millions of dollars over a decade of years at developing the competitive advantages that oponents to the merger are asking the FCC to rob from the Merged Company and give to them for free. These AG's are supporting this robbery. Who are they kidding.
Chairman Martin's Contact Information
Room: 8-B201 • Phone: 202.418.1000 • E-mail
----------------------...
Federal Communications Commission
445 12th Street SW
Washington, DC 20554
More FCC Contact Information...
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Hello Chairman Martin;
I hereby respectfully request that you permit that XM and Sirius Radio merge as soon as possible. I enjoy the service and wish for it to continue being available. The current model of having two companies has proven to be non-profitable and we may lose the industry.
Destroying these two companies by not allowing them to merge would be un-American and would be a slap in the face of innovation. Innovation is one of the only things that the US can bank its future on. If we take this last Ace out of our deck, we will live in a Euro based world soon. So we may all have to learn German after all, even after our great efforts in the 1940s.
I do not want to see the people that had the courage to developed this service be punished any further by delays.
Thank you for your time
"This will possibly be the final detailed analytical entry for this transaction."
This transaction is like cocaine for you, isn't it? You just can't stay away from it. Get some help. Addictions like this never turn out well for the addict.
I have read every single entry you have posted on this subject and your accuracy is 0%. What is your qualification or reasoning behind these abstract and inaccurate assessments? Just curios.
To Contact the Commissioners via E-mail
Chairman Kevin J. Martin: KJMWEB@fcc.gov
Commissioner Michael J. Copps: Michael.Copps@fcc.gov
Commissioner Jonathan S. Adelstein: Jonathan.Adelstein@fcc...
Commissioner Deborah Taylor Tate: dtaylortateweb@fcc.gov
Commissioner Robert McDowell: Robert.McDowell@fcc.go...
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Advanced, easy-to-navigate web design. The M & A Researcher utilizes a convenient frames environment for rapid access to critical information throughout the site. Subscribers have the option to view updates in single-line, link format, or in streaming update format. Additionally, all content is presented in carefully organized and structured formats, enabling subscribers to easily locate specific information including, but not limited to, research, analysis, event and regulatory updates, and calendars.
From 1996 regrading use of frames in HTML:
www.useit.com/alertbox...
Jakob Nielsen's Alertbox for May 1996:
Original Top Ten Mistakes in Web Design
1. Using Frames
Splitting a page into frames is very confusing for users since frames break the fundamental user model of the web page. All of a sudden, you cannot bookmark the current page and return to it (the bookmark points to another version of the frameset), URLs stop working, and printouts become difficult. Even worse, the predictability of user actions goes out the door: who knows what information will appear where when you click on a link?
Point?
How can one trust someone analyzing modern technical institutions when the author has apparently stopped updating his use of technology in 1996.
Yes , 11 AG's are against the merger, yes John Kerry made a comment, yes my father asked me to update his Windows 98 yesterday to XP, yes phone books still have pone numbers, yes you can even buy stuff on the inra-WIde-World-net. This is why Silicon Valley and technology [my industry] are so far ahead of Government. Please at least look like you are one step ahead of the Gov't not In-step with it otherwise your analysis is DOS in a Unix world.