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]

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Internet and cable radio - continues to reap special interest subsidies in the form of free government spectrum and an outdated exemption from compensating artists and record companies.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

The National Black Chamber of Commerce (NBCC) today called the decision by the DOJ a "monumental step in providing increased access to diverse programming."

The NBCC also contends that throughout the process, the group has maintained precisely what the DOJ ultimately found: that there are "efficiencies likely to flow from the transaction that could benefit consumers." As a result, NBCC feels that the merger would be the first step towards more diverse programming.

The NBCC urged the FCC to approve the merger without "onerous merger conditions" so that all merger efficiencies can be realized.

Federal Communications Commission Chairman Kevin Martin received a letter today from Congress that are "investigating allegations from current and former FCC employees and other sources, which we have reason to believe are credible."

House Energy and Commerce Committee Chair John Dingell (D-MI), sent Martin the request letter today. The letter was cosigned by the ranking Republican on the Committee, Rep. Joe Barton of Texas.

The letter's charges concern "management practices that may adversely affect the Commission's ability to both discharge effectively its statutory duties and to guard against waste, fraud, and abuse."

As a result, Martin has to deliver to Congress written records dating back 2005, including all e-mails, handwritten notes, phone conversation records, meeting schedules, and whatever else exists in paper or electronic form since January 2005 involving the audit's case file.

In addition, Dingell and Barton also want Martin to hand over any records that explain the Commission's policies on "communications between FCC personnel and outside entities" and any directives involving "limitations or restrictions imposed on FCC employees' ability to communicate with each other concerning official agency business" - among other items.

Martin has two weeks to deliver this information and records to Congress. As Ars Technica puts it, this request "has got to be turning the FCC completely upside down."

Perfect timing huh?

[Ars Technica via Engadget]
Thanks Sean!

Former U.S. Attorney General Dick Thornburgh wrote an opinion piece in the Washington Times today, voicing his concern over the Sirius-XM merger.

Most folks, by now, know that I'm on the pro-merger camp, but Thornburgh's article is persuasive one nonetheless (hey, credit given where credit is due). It's also significant that he's a former Attorney General ('88 to '91), although it also should be noted that he's a consultant to some of the most well-connected college kids ever: C3SR.

What's so persuasive about his article? This:

"This case is not even a close call under the antitrust laws -- it's plainly a merger to monopoly. Moreover, it is an important case with great precedential value. Indeed, the Justice Department decision on the Sirius/XM merger is the litmus test for everything that follows, including Microsoft/Yahoo. If this case does not provoke antitrust enforcement from the department, no forthcoming merger proposal could be ruled impossible."

And that right there sums up what the underlying issue is with this merger, and why it is most likely in eternal limbo.

The problem isn't whether satellite radio is competing with terrestrial. Of course it is. And of course, they're competing with the iPod. And of course they're competing with Internet Radio and the entire slew of current and potential rivals. That's the new world we live in. That's the reality. The lines of media and technology are - at a shockingly rapid pace - completely blurring.

But the government isn't setup to handle this change in media (or in business for that matter).

The problem isn't defining competition, the problem is precedence. If the DOJ approves this merger without a thought, they effectively are saying that the method of distribution doesn't matter anymore. And that opens up a big can of worms for future transactions.

[The Washington Times]