Top management from both Sirius Satellite Radio Inc.and XM Satellite Radio Holding Inc. met with the Federal Communications Commission this week according to separate ex parte filings made with the agency.

From XM, four representatives attended the meeting: Gary Parsons, Eric Logan, Mark Vendetti, and Jeff Blattner. Latham & Watkins LLP (counsel for XM) also attended the meeting. XM met with the FCC on Wednesday, September 26th.

On Sirius' side, five representatives attended the meeting: Mel Karmazin, Scott Greenstein, David Frear, Patrick Donnelly, and Terry Smith. Representatives from Wiley Rein LLP (Sirius' counsel) also attended the meeting. Sirius met with the FCC on Thursday, September 27th.

During the meeting, both XM and Sirius discussed various aspects of the satellite radio business, including the topics of subscribers and service, content and advertising, technical issues, and business relationships with automobile manufacturers and retail outlets (so pretty much... everything).

[View FCC Filings: 1, 2 (PDF) via Orbitcast Forums]

The Heritage Foundation's Edwin Meese III (Ronald Reagan Distinguished Fellow in Public Policy and Chairman of the Center for Legal and Judicial Studies), and James L. Gattuso (former FCC official) have written an article summarizing the NAB's fight against the Sirius-XM merger.

It's an endorsement for the merger, systematically debating all of terrestrial radio's points against the merger, not to mention using the NAB's own words against them (which isn't hard).

Entitled "Beyond the Fairness Doctrine: Radio’s Fight over the XM–Sirius Merger" it's a well written piece and a highly recommended read, regardless of where you stand on the merger debate.

There's a radio war going on in Washington, and this one has nothing to do with the Fairness Doctrine. Talk of re-imposing the requirement by the Federal Communications Commission (FCC) that broadcasters air opposing views on controversial topics sparked an intense and highly publicized debate this summer. Almost lost in the "fairness" furor, however, has been a second, but no less intense, radio industry battle over the merger of satellite radio providers XM and Sirius. After months of review, a ruling from the Justice Department is expected within weeks, to be followed by a decision by the FCC, which also must approve the transaction. The merger debate is different from the "fairness" debate in that it involves the structure, rather than content, of the radio industry. Like the "fairness" debate, however, the outcome could determine how Americans will listen to the radio for years to come.

Jim Gattuso, who co-authored the article, has quite the interesting background, especially with the FCC. From 1990 to 1993, he was the Deputy Chief at the FCC's Office of Plans and Policy. From May 1991 to June 1992, the FCC detailed him to the office Vice President Dan Quayle, where Gattuso served as Associate Director of the President's Council on Competitiveness.

[The Heritage Foundation]

FCC Commissioner Michael Copps expressed skepticism today about whether he would endorse the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Copps, one of two Democrats on the FCC, said it would be a "steep climb" for him to cast a favorable vote because he has serious concerns about media consolidation. Copps had previously referred to the proposed Sirius-XM merger as a "steep climb" as well back in mid-April.

"Somebody's going to have to make a pretty powerful and potent demonstration that it serves the public interest," Copps said of the XM-Sirius deal.

"The parts of the (public) record that I've looked at so far have not shown me that (the deal) serves the public interest," Copps told reporters at a briefing.

Copps declined to comment on how he will vote, but said he had "very serious worries" about media consolidation in general. "I think localism, competition, diversity (in the media) have been seriously threatened." The Commissioner has historically had problems with the overall state of consolidation in U.S. media, and has expressed this vocally in the past.

[Reuters]

Speaking at the NAB Radio Show this morning, FCC Chairman Kevin Martin spoke only generally about the Sirius-XM merger but said that the companies had "interesting proposals" to justify the merger and protect consumers.

During the annual FCC Breakfast, the FCC Chairman fielded several questions: from public interest questions, to changes to the EAS system, and of course, the merger between Sirius Satellite Radio Inc., and XM Satellite Radio Holdings Inc.

Martin spoke only generally about the merger, stating that the current rules prohibit both companies from merging, but said that Sirius and XM have provided "interesting proposals" stating their case.

NAB Radio Board Chairman Russ Withers asked about the NAB's concern that the satellite companies are planning to go after local revenue, but Kevin Marin noted that the companies are not prohibited from going after local ads. They just cannot insert local-only ads and material through the local terrestrial repeater network.

"I would be concerned if they were trying to become a local broadcaster," said the FCC Chairman. Martin didn't agree that local material broadcast nationally violates the local prohibition placed on the satellite companies.

[AllAccess]

It's funny what different news services choose to focus on when reporting the same situation. Thomas Barnett, assistant attorney general at the Justice Department, was asked about the Sirius-XM merger review at a congressional hearing yesterday, yet two media outlets each have an entirely different take on what was said.

The Denver Post is reporting that DOJ officials need more information to determine whether the proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. would hurt consumers.

"I can't give you an exact time frame," Barnett told Rep. Ric Keller, at a hearing of the House Judiciary Committee's antitrust task force.

Meanwhile Reuters is reporting that the Justice Department is moving "as quickly as possible" in its antitrust review.

"We want to do that as quickly as possible, but we also want to get to the right answer," Barnett told lawmakers.

Bank of America analyst Jonathan Jacoby chose to focus on the former statement in a note issued this morning.

"The big question is what does 'more information' require for the merger process at the DOJ? Will it require more documentation from the companies or just more time by the DOJ to review the submitted documents?" wrote Jacoby. He also noted that Bank of America has not had the chance to speak with their regulatory contacts this morning.

Jacoby pointed out that while the delay could be minimal, "it could also be longer than the market would anticipate." Adding that it would likely take longer than the 15-45 days that the street is hoping on.

Bank of America's contacts put the chances of the satellite radio marriage receiving regulatory approvals before the end of 1Q08 at ~30%.

[Reuters, The Denver Post]

XM and Sirius published an advertisement in Communications Daily, The Hill, The Politico and Roll Call today publicizing the recent survey that found a majority of voters support the merger of the two companies.

The text of the advertisement reads:

Finally, Democrats and Republicans agree on something.

70%* are in favor of A La Carte and Best of Both programming packages that would be offered in a XM-SIRIUS merger.

In fact, voters agree that the merger is in the public interest by a margin of more than 2 to 1. But it's not just Republicans and Democrats who agree. It's every segment of the population. People of all ages. People who live in the country and the city. People of all races.

Here's the actual ad:

(The decision for this merger really just can't come soon enough...)

UPDATE: The image and text I posted was actually the wrong version of the ad. I've updated the post and the image removing the "Everyone thinks it's a good idea" copy which was never run in any of the publications above. Sorry for the misunderstanding...

The Federal Communications Commission is being flooded with what appears to be a form letter stating opposition to the Sirius-XM merger. As a result, the tide of "public opinion" has just been turned against the Sirius-XM merger.

SiriusBuzz has been tracking the progress of comments and note that prior to the anti-merger form letter, "over 77% of the comments submitted to the FCC would be pro merger." But as it stands now, 50% of the comments submitted are anti-merger, while only 49% are pro-merger.

Whether you are for or against the merger, the use of form letters to portray the public opinion can only be considered deceptive and misleading. The form letter reads as if this is being led by the NAB, as it uses similar rhetoric that the NAB has been spewing, but there has not been any confirming details to prove that the NAB is behind this.

Whoever it is, I think it's dirty and underhanded.

Call to action!
If you're a merger proponent and want to help out, please use the form available here or here, and voice your support. Even if you are against the merger, but feel tactics like form letters are dishonest and shouldn't play a part in this, please contact the FCC and let them know.

There's something inherently wrong with this technique, and I really hope that we can band together to let regulators know that we don't agree with it. If the public opposes the merger, then so be it, but let that be decided upon fairly and based on its merits. Not with rapid-fire form letters.

View a copy of what is written in the anti-merger form letter after the jump. Please note that the typographical and formating errors are actually part of the letter and are not mistakes on my behalf.

XM Satellite Radio chairman Gary Parsons compared th NAB's lobbying efforts to stop the Sirius and XM merger to a "jihad" at the Goldman Sachs conference in New York yesterday.

"They clearly view it as competition and, candidly, they should," Parsons told attendees.

"I've been a bit surprised about the raw magnitude of the dollars they have spent and the somewhat visceral nature of the jihad against the merger going forward," he added.

Parsons wondered why terrestrial radio dismiss satellite radio as having limited appeal while simultaneously spending vast sums of money - through the NAB - to try and stop the satellite radio merger.

Using the term "jihad" to describe the NAB's opposition is strategically brilliant in my opinion, and it's not the first time Gary Parsons has used this term. But it's an effective, and accurate I might add, description of their relentless lobbying - despite NAB members' own SEC filing having cited satellite radio as competition (and these constitute admissions under the law).

In response to Parsons comments, NAB spokesman Kris Jones said, "a monopolist will say and do anything to get their monopoly."

Wait... which group is it that will say anything and do anything again?

[Hollywood Reporter]

XM Satellite Radio and Sirius Satellite Radio have issued a press release this morning highlighting that major retail corporations and auto manufacturers have thrown their support behind the XM-Sirius merger.

It's a good thing to highlight because if consumers really wouldn't react positively to a merged entity, then the retail/auto companies would feel the pain first. On the same token, alternative audio sources like HD Radio, iPods, and the like, are undoubtedly eating into retail and auto satellite radio offerings - so they're seeing the competition from the supply-side.

Both retail companies and OEMs the ones who are on the front-line interfacing directly with the consumer. So when companies like RadioShack, Circuit City Stores, and Crutchfield; join with auto manufacturers like Honda, Toyota and Hyundai; it's something to brag about.

And don't think the NAB doesn't understand the value of these filings. To the point where they listed Toyota as opposing the merger, a fact that Toyota was not very pleased about (and let's not forget the NAB's apology for misrepresenting the stance of several Congressmen).

Below are some of the quotes from FCC filings used in the press release:

"...the merger will bring greater vitality and financial resources to this upstart technology. Allowing this to happen will, in turn, spark a new generation of services and products with more advanced and user-friendly features. Consumers, of course, will be better off as a result."

-- Julian C. Day, Chairman and CEO, RadioShack Corporation

"Based on our longstanding expertise in both the home and car audio entertainment business, we strongly believe that this merger will be beneficial to consumers. In fact, we believe that it is critical for the continued growth of this medium."

-- William G. Crutchfield, Jr., CEO and Founder, Crutchfield Corporation

"Circuit City believes that the FCC should allow Sirius and XM to implement their plans to make satellite radio a stronger competitor, and provide improved product and service to consumers, by approving their applications in this proceeding."

-- Philip J. Schoonover, Chairman, President and CEO, Circuit City Stores, Inc.

"We are informed that as a result of the proposed merger satellite radio customers will be able to select packages of fewer channels at lower prices. If these enhanced options in fact become available, satellite radio subscribers stand to benefit as entertainment choices would increase and overall pricing would become more affordable."

-- George S. Cary and Michael R. Lazerwitz, [on behalf of] Toyota Motor Corporation

"We believe that efficiencies realized from the merger will benefit our customers in other ways, as well. For example, the merged company will likely improve upon current in-vehicle services that support the driving experience, such as traffic and weather, and promote the introduction of exciting new services. It will also provide a more robust and stable platform for satellite radio generally, and maximize its prospects for success in the increasingly competitive market for audio entertainment services."

-- Wayne Killen, Director, Product Planning, Hyundai Motor America

"While American Honda has seen early promise in this collaboration, it has become evident that satellite radio and digital satellite services must compete mightily in the U.S. with a wide array of burgeoning entertainment forms and an ever-widening list of technology participants who are delivering services in this space."

-- Charles Koch, Manager American Honda Product Planning, American Honda Motor Co. Inc.

Wisconsin's Attorney General yesterday asked the Department of Justice to block the XM-Sirius merger.

In his letter to the DOJ, Attorney General J.B. Van Hollen said the combination of Sirius Satellite Radio, Inc. and XM Satellite Radio Holdings, Inc. would create a monopoly that would be bad for consumers.

"The proposed merger would eliminate competition in the satellite radio industry and the combined XM-Sirius companies would be free to raise prices, stifle innovation, and reduce program diversity," wrote the Republican Attorney General.

XM and Sirius maintain that they face competition from terrestrial radio, iPods, internet radio and mobile-cellular audio. The satcasters argue that these audio entertainment choices would prevent them from doing what the Attorney General from Wisconsin claims.

But Van Hollen rejected that argument, saying XM and Sirius offer a unique range of live sports, weather and news. Consumers may be forced to pay more for what they already get under the companies' proposed post-merger pricing plan, he said.

[CNN Money via Orbitcast Forums]