XM, Sirius Deal Inches Closer: Now Settling Enforcement Issues

In what could be one of the final steps before the FCC approves their pending merger, XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) this morning announced that they are in talks with the FCC’s Enforcement Bureau to settle outstanding “enforcement matters.”

The WSJ reports that Republican FCC commissioner Deborah Taylor Tate has agreed to vote to approve the deal after winning several concessions from the companies involving enforcement issues. She would break a deadlock among the commissioners, who would then have voted to approve the deal by a 3-2 margin. According to the Journal, FCC Chairman Kevin Martin disclosed the news this morning. “I think it’s fair to say an agreement in principle has been reached,” he said Thursday morning. “We’re still trying to work out the language.”

In 2006, the FCC began investigations into the compliance of certain radios and terrestrial repeaters. The two companies said they hope to enter a consent decree to close the book on the situation. To settle the matter, the companies would take steps to address non-compliant radios still owned by consumers. XM would shut down 50 “variant” repeaters and bring into compliance or shutdown another 50. Sirius would bring into compliance or shutdown 11 variant repeaters, all of which have actually already been shut off. XM would pay a $17 million “voluntary contribution” to the Treasury Department, with Sirius paying about $2 million.