I wanted to ignore this - because it's just so outlandish and completely incorrect - but I've been getting so many emails all day that this post simply needs to be addressed.

A recent post on The Consumerist which features the wonderfully scandalous headline: XM-Sirius Merger Will Double Monthly Prices? is wrong. Pure and simple, wrong.

According to "a customer service rep" (-10 points instantly), a tipster has told the normally-useful blog that XM Radio's prices will "roughly double" by May.

Here's what was supposedly said:

"This is strictly confidential, but all the paperwork is signed and ready to go, and XM has fully acquired Sirius Radio. Come May, there will be a substantial price increase for XM Radio, as it will, in June or so, host all the Sirius channels. It would be best to simply extend your XM plan as we will honor your current contract price per month before we begin hosting the Sirius stations."

How many holes do you see in that statement?

The problem I have is that back in July of last year, Sirius and XM outlined their pricing strategy post-merger. And in front of multiple Congressional hearings, and for countless times throughout the past year or so, we've heard the "more choice, better prices" mantra repeated over and over again. Yet, when a single outsourced customer service rep (if such nonsense even came from this source) says something completely ridiculous like this, everyone perks up and listens.

Just so we're clear:
Everything, and I mean everything, from that quote above is wrong.

[The Consumerist]
Thanks to everyone who sent this in!

The DOJ's approval of the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. could bode well for some semiconductor suppliers, as well as allow for cheaper satellite radios, says some industry experts.

Suppliers like STMicroelectronics may fare well if the "new" Sirius decides to integrate its baseband and tuner on a single chip. ST would be able to do this with a minimal learning curve, according to Michael Kasparian, market development manager for the automotive business unit at the company. That's because ST is the sole provider of XM's baseband chipset and is one of two suppliers for Sirius' baseband chipsets, plus it also delivers tuners for both systems.

Kasparian says a redesign into a single baseband chip will require retooling, because the two basebands are currently completely different, adding that the new chip spec from Sirius could take up to a year after FCC approval.

"We'd be talking about a 65nm CMOS process for the baseband chip," said Kasparian. "If it takes longer to get the design, we may be to 45nm."

According to EE Times, the unified company could bring in economies of scale large enough to affect the entire industry. The chip's "real estate" alone delivers cost savings.

"You're buying by die size," Kasparian said. "The more you buy, the cheaper per die you can get away with, whether it's what we're charging or what you're willing to pay."

The market currently supports two distinct systems with distinct chipsets, but a single-chip solution serving both Sirius and XM would offer cost advantages.

"That would mean fewer part numbers shipping to larger volumes," said Kasparian. "That's always cheaper to do, and that kind of cost reduction would be passed on to the consumer."

[EE Times]

Last week's decision by the Department of Justice may have a domino effect for other major satellite players in the coming year, says GigaOM.

They point to satellite operators including Iridium, Globalstar, ICO Global Communications, TerreStar Corp. and Mobile Satellite Venture which are all trying to operate or build out networks. But with a shortage of spectrum for some, these may choose to follow Sirius-XM's lead, and join forces.

Given the spectrum owned and the types of satellites launched, Tim Farrar of TMF Associates feels that the likeliest deals would be between ICO and TerreStar; Inmarsat and MSV; and Globalstar and Iridium.

Does the Sirius-XM deal set off an opportunity for other satellite mergers in 2008? I'm less inclined to think so.

Simply by observing the length of time it took the DOJ analyze the situation, combined with the upcoming possible political shift in power, and you'll realize that Sirius-XM came in just under the wire with this decision. If a less M&A-friendly Democratic administration is elected to office, these types conditionless satellite mergers would likely be put on hold for the near future.

[GigaOM]

REM will be taking over Sirius' Spectrum channel, and temporarily renaming it to "Radio REM" for an entire week to celebrate the release of the band's 14th studio album Accelerate.

"Radio REM" will be hosted by band members Michael Stipe, Peter Buck and Mike Mills. You'll hear insight from the band on the inspiration for each song on Accelerate, as well as intimate conversations ranging from the state of the band to their personal worldviews.

Interestingly enough, while the new album will be released on April 1st, Accelerate has already debuted on the popular Facebook application iLike.

The channel debuts on Monday at 7am ET on The Spectrum (ch 18).

Just a friendly reminder that Orbitcast Radio will be broadcasting live today at 8pm ET/5pm PT. If you're around and want to participate, the call-in number is (646) 595-3690.

And remember, if you miss it, you can always catch the replay.

[Click here to listen]


Side note: Orbitcast Radio is now a featured show on BlogTalkRadio... we're growing!

Now that the onus of responsibility for the merger between Sirius and XM has landed on the steps of the FCC, the focus now turns to the various "public interest" concessions that could be imposed to allow the marriage to pass.

Up to this point, the most vocal of opponents - such as Georgetown Partners and Clear Channel - have directed their arguments toward the divestiture of spectrum. Personally, I've always favored Public Knowledge's suggestion that Sirius-XM should make 5% of its channel capacity available to non-commercial programming over which it has no editorial control. (I can only hope the Commission would hold the same reasonable opinion.)

But there's a separate argument that has recently come to light. One that is just as important as the control of spectrum - that of the "open device" principle.

It's not exactly a new issue, simply one that has never received as much attention as divvying up broadcast infrastructure. Indeed, Public Knowledge has even suggested the "open device" principle in several of its filings, as has the Media Access Project and several others.

But now a filing published today with the FCC indicates that the "open device" argument has taken center stage.

Following yesterday's article about who's going to be the next FCC Chairman, an observant Orbitcast reader points out that one those hopefuls has very distinct ties to the satellite radio industry.

In fact, this possible future FCC chair actually worked at one of the satcasters in recent years. Click the jump to find out who it is...

Counsel for both Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. met with top officials from the Federal Communications Commission on Wednesday, according to a recent filing with the agency.

The meeting was with FCC Chairman Kevin Martin; Daniel Gonzalez, Chairman Martin's Chief of Staff; and Michelle Carey, Chairman Martin's Senior Legal Advisor.

According to the filing, the meeting was held with the Commission to discuss action on the merger following the decision by the Department of Justice. In addition, the filing included the programming packages and proposed pricing seen here and here.

View the FCC filing after the jump...

A gaggle of state Attorneys General today urged the FCC to impose restrictions on the merger of Sirius Satellite Radio, Inc. and XM Satellite Radio Holdings Inc.

The AGs - coming from 11 states that include Connecticut, Ohio, Missouri, and Iowa - told the Commission that they were "disappointed" by DOJ's decision to let the deal proceed without conditions.

"The combination of these companies will result in a single corporation controlling access to all nationally available satellite radio," the attorneys general said.

And what do they want?

The states are saying that the FCC should consider requiring Sirius and XM to make interoperable radios available to customers (uhm, ok), offer different packages of channels on an a la carte basis (uh huh), and divest some radio spectrum that would allow another competitor into the business (it depends, how much?).

"Our offices stand ready to share with you our thoughts on the potential value of various remedial conditions available, such as mandatory publicly available interoperable receivers, a la carte pricing, and divestiture of spectrum."

I don't think there was ever a question of concessions. Mel Karmazin, during the many hearings on Capitol Hill, clearly stated the companies' willingness to provide concessions so that regulators would deem the merger in the public interest. I'm not exactly sure where these Attorneys General have been, but much of what they're asking for has already been baked into the merger. But that's politics for you...

[via Reuters, RadioInk]

Looks like everyone needs to weigh in on the Department of Justice approving the Sirius-XM merger. Next up to the plate: The RIAA.

Mitch Bainwol, Chairman & CEO of the fan-favorite organization, decided to spin the situation to include the performance royalty argument with terrestrial radio...

"The merger's approval serves as a powerful validation that competitors should play by the same set of rules. On the heels of this decision, the logic for a performance right for terrestrial radio has never been clearer. Terrestrial radio - unlike satellite, Internet and cable radio - continues to reap special interest subsidies in the form of free government spectrum and an outdated exemption from compensating artists and record companies. It's time for that to change and for Congress to provide an economic marketplace where there is parity amongst all delivery platforms."

And while I disagree my blogging colleague Mark Ramsey on the whole issue of performance royalties for all forms of radio, I do agree with his feelings that these two issues are completely unrelated.

Photo courtesy of icanhascheezburger.com