Comments on: House panel grills Sirius chief on XM merger

Politicians say they want to keep an open mind but indicate the deal may have high hurdles to leap.

[adlyb1]

This merger needs to happen

First, the government allows the creation of behemoths like Clear Channel, which leads the demise of any terrestrial radio worth listening to and then argues against providing the only decent alternative with the means to compete.

It is obvious that only one of these two companies can survive in the current environment (and it is increasingly looking like Sirius), so they should allow the merger, but with some caveats.

A moratorium on price increases for reasonable period of time, say 18-24 months.

A plan for merging the two systems into one within a fixed period of time and returning the unused spectrum for use by a future competitor.

The opportunity for customers of both companies to have a say in how programming is merged.

[i_am_still_wade]

Let me add something else

The merger should not, under any circumstances, require the purchase of new equipment unless XM/Sirius will fully compensate for updated hardware.

I have XM, and I will not be happy -- meaning I will cancel -- if I am forced to buy new equipment.

[tarredwebfoot]

Current Structure Has To Go

I have XM because it broadcasts ACC sports. My partner needs Sirius because it broadcasts SEC. The FCC and Congress want us to pay $26 a month and purchase 2 radios. Versus if they merge and we have to pay say $15 a month for combined service. Hmm. Which is better for the consumer?

Someone mentioned Clear Channel's domination of free airwaves. They own a big chunk of XM too and have already destroyed a big portion of the value proposition by forcing commericals. They will own a big chunk of the combined company as well. Breaking up that monopoly is where the FCC and Congress should really be focusing their time and attention.

There are distinct advantages and disadvantages to the two types of Satellites being used. We used the XM radio on our move across the country and had to turn it off through much of Western Wyoming, Idaho, Montana because the hills kept cutting off the signal. A dual mode radio would give more consistent coverage. (Sirius satellites change their relative position above the earth so technically should be able to handle valleys much better.)

Finally, my series 1 Delphi MyFi is suffering for quality issues. I'm going to have to replace it soon. Let's get this merger over soon so I can buy the new dual mode / advanced radio. (Let's get real, yes you can still use your original analog Star-Tac phone, but the newest services require the newest equipment. Same will happen here. Stop being cheap!)

[PBCliberal]

Return the spectrum

I too think either a merger or acquisition has to happen. Both these companies have been burning investment capital for too long, and the well is starting to run dry. But they shoudn't be rewarded for their failure.

This spectrum...the airspace that these channels occupy...is a valuable limited resource that (at least theoretically) is owned by the American public and administered through "our" FCC. These companies knew when they applied for the ability to use the bandwidth, that there would be one and only one competitor.

I'm sorry things didn't work out for them and for their investors, but we already gave them protection by licensing a duopoly and we shouldn't reward their collective failures by giving them more by handing them a monopoly. Its not like we don't have other uses for this spectrum.

Let them decide which of the two delivery systems is the best, provide a free or reasonable way for the users of the rejected technology to migrate to the selected one, and give the spectrum back to the real owners so that we can use it either for another technology that is profitable to deliver or reserve it to re-establish a duopoly (should we find more starry-eyed entrepreneurs).

[wpavlik2]

XM/Sirius merger

I believe this merger is a great deal for consumers of Satellite radio.
Although many people feel they don't want to have to worry about buying new equipment, I believe that as new equipment becomes available, many adopters of Sat. radio will "upgrade".
I have an S50 unit by Sirius. At some point in the future, I will probably "upgrade" to the new fully portible Stiletto unit. (or a future version of a fully portible unit) Also they may add video services, that would be a reason to upgrade.
I think setting aside a section of frequencies for a future competitor is a good idea, once the companies have merged and rolled out future products. The other thing would be for the merged company to offer a trade in program for older hardware.
I'm looking forward to MLB to go with my NHL, NBA, NASCAR and NFL, not to mention Howard Stern.

[Pauldsu]

No merger

This merger should never happen. No merger mean competition and good for customer.

[wone123]

stop the merger!

there could be a future of digital push services...

let competition flurish.. even with expensive satilites...

[Im-Not-TED]

Satellite Radio is an Optional Service

How can there be a monopoly on an optional service? Who the heck has to have a satellite radio? No one! If the service providers want to merge, let them. If they raise prices, the customers will leave.

Congress should get some panty lube and stop trying to distract the public from bigger issues. Find a way to stop rampant gas price gouging, feed hungry children, work on healthcare, anything with real value.

People should be angry that the congress is wasting time on this crud.

[bemenaker]

Digital FM radio is the competition

Why do you think clear channel wh0r3s out digital radio so much, satellite's clarity is a major threat to existing markets. The only way these companies are going to survive is if you allow the merger to go through. Let's see, you can have terrestial digital radio competing with one merged satellite company, or you can have terrestial digital radio being the only option and us consumers putting up with annoying crap like clear channel.

[bsw11]

One thing they could do if it does not go throught..

There is one thing the companies could easily do, even if the merger is denied - allow all the receiving devices (can, portable, home) work with both systems like AM/FM. That should not need approval and would go a long way in helping both consumers AND the companies. One would expect this would happen if the merger went through and its a good idea either way.

[trylon]

What about Internet radio?

Per the proposed Sirius-X merger, the issue of consumer choice is important. However, in the debate between terrestrial and satellite radio, an important third player, Internet radio, has been omitted from the discussion. Anyone with a computer and Internet connection can now listen to thousands of radio stations worldwide online, without subscription fees. With the growth of wireless and satellite-delivered broadband, a combined effort by equipment manufacturers, Internet Service Providers (especially Broadand over Power Line) and radio programmers could make Internet radio widely available to homes, offices and cars, thus providing consumers with a third option for virtually unlimited audio programming offerings.

[jasonm0817]

Sirius and XM stock up 1.4%

Looks like there is no doubt on the street about this merger especially on such a off day. The current price of Sirius Satellite Radio is a gift.

[sumrzz]

Lets Deregulate All Of It Shall We

I PROMISE YOU THAT THIS WILL BE APPROVED.
THERE ARE TOO MANY GREEDY PEOPLE INVOLVED HERE.

As a Radio Veteran I've seen this time and time again where big radio conglomerates want to buy each other out only to sell out the listener, cut out the individual voices, raise the rates and most significantly fire the employees that got them there. How do I know? I've been in Radio for many years. I know.

I can promise you this, if the federal government allows this to happen to Satellite Radio like it happened to terrestrial radio during the Clinton years with the signing of the telecommunications act, you will see all of the above happening all over again. This time it will be Satellite Radio's turn. And knowing some of these corrupt politicians you'll probably even see a stipulation that WON'T level the playing field for another potential Satellite company to sign on board if the merger is approved.

Trust me...it's all about the almighty buck in the end.

THE LISTENER STARTED COMING IN LAST when the telecommunications act was signed in to
law. What you hear on your terrestrial radio today is TOTAL evidence of that.