The Reverend Jesse Jackson today at an FCC hearing on localism voiced his opinions on the potential competitive harms he feels could come to minorities should the Sirius-XM merger be approved.

"The proposed Sirius-XM merger would eliminate the potential of any meaningful competition in the satellite radio market, which would, in turn, permanently block the potential for diversity of ownership and control by minorities in the only medium capable of nationwide broadcasting," said Jackson.

Jackson continued, "I urge this commission to view this proposed transaction - as it is currently structured - not in the public interest. It will eliminate diversity of content and meaningful opportunities for minority partnership in media ownership. This cannot happen. This commission must uphold the statutes and regulations that promote content diversity and opportunities for media ownership by minorities."

"The commission should seize the opportunity presented by this transaction to make a difference that serves the best interests of all concerned: Sirius and XM in their objectives, the marketplace and diversified ownership and competition, and the public's right of access to benefit from varied programming that is appropriate and feasible," Jackson continued.

"The proposed transaction would result in the business combination of the two most significant and largest companies in satellite communications. In effect, this creates a monopoly, virtually making competition impossible and programming dangerously subject to the combined entity's self-interests and whim. This puts the public at a disadvantage. It has the potential of serious economic havoc on any business attempting to be a part of this marketplace and to the communities of which these businesses serve," said Jackson.

This is in direct opposition to the opinion of the NAACP, which came out in favor of the merger earlier this year, stating that a merged satellite radio company would "strengthen its commitment to diversity."

As we near the final stretch of this high profile merger, it looks like things are really starting to heat up.

[Radio Ink]

Glass, Lewis & Co., a leading independent proxy advisory firms, has recommended that stockholders of XM Satellite Radio Holdings Inc. (XMSR) and Sirius Satellite Radio Inc. (SIRI) vote "FOR" the companies' merger proposals.

According to Glass Lewis's analysis, "the transaction is fairly priced and will yield substantial cost synergies for shareholders of both companies." As a result, Glass Lewis believes that the "proposed merger is in the interests of shareholders of both companies."

I'm not a shareholder of either company (never have been, never will be), but I know a lot of you are. So I'm curious, how will you vote?

Here comes another round of public support from Capitol Hill, this time from Senators John Ensign (R-NV) and Jim DeMint (R-SC).

The Senators have both praised Sirius and XM for the programming packages and a la carte pricing plans. DeMint stated that "these options will give American consumers more control over the programming they pay for.”

I'm still curious to know why there's this increased support from politicians who have previously remained silent. But for merger advocates, the political pressure is obviously quite welcome.

"Sirius and XM have responded to the market’s desire for more choice, and we applaud them for voluntarily offering subscribers new and innovative listening options. We are particularly pleased that they will offer family-friendly options that allow subscribers to block adult programming,” added DeMint.

"This is a great example of how private industry can and will respond to the demands of consumers without the need for government intervention," said Ensign. "We hope that other entertainment providers will follow XM-Sirius’ lead and offer Americans increased choices and customization."

[XMmerger.com]

Eleven members of Congress voiced their support for the Sirius-XM merger, in a letter addressed to FCC Chairman Kevin Martin.

The letter was signed by:
Rep. Sanford Bishop (D-GA), Rep. Corrine Brown (D-FL), Rep. Yvette Clarke (D-NY), Rep. Danny Davis (D-IL), Rep. Eliot Engel (D-NY), Rep. Ralph Hall (R-TX), Rep. Alcee Hastings (D-FL), Rep. Carolyn Maloney (D-NY), Rep. Greg Meeks (D-NY), Rep. Bobby Rush (D-IL), and Rep. Edolphus Towns (D-NY).

"...the merger of Sirius and XM will create new opportunities for this type of diverse programming that has been overlooked by terrestrial-radio broadcasters. This merger will allow the companies to offer even more diverse content by consolidating programming and better utilizing capacity to offer even more unique and diverse programming to currently underserved populations."

The timing of this is interesting.

The NAB came out with their own Congress-backing letter to the FCC many months ago. Meanwhile, Sirius-XM lately have seen momentum build on Capitol Hill with support from various lawmakers. Is this a calculated "killing blow" tactic? Or did it just take them this long to garner this level of support?

[Read the letter here (PDF)]

They're not done yet.

The Carmel Group, commissioned by the NAB, has released yet another "ping-pong" chart to show that Sirius and XM directly compete with each other.

A follow-up to an earlier study by The Carmel Group, this features a more in-depth "ping-pong" chart than before with a huge list of competitive actions and reactions between the two companies.

The study asserts that "without this continued competition, consumers will not be able to obtain substitutable competition from competitors within the all-important vehicle; and importantly, choice, competitive pricing restraints and service will undoubtedly - and significantly - suffer."

And of course, NAB spokesperson Dennis Wharton had his pom-poms in hand with this to say:

"Contrasting XM and SIRIUS's history of competitive behavior with their track record of abusing FCC rules, the central question remains: Should two fierce competitors with a demonstrable record of FCC rule-breaking be rewarded with monopoly power? We -- along with consumer groups, minority organizations, antitrust experts and more than 80 members of Congress -- think the answer is no."

Following the April study release, I discovered an earlier article written by The Carmel Group that was not commissioned by the NAB which stated that satellite radio's "competition comes in the form of traditional analog AM & FM radio, as well as burgeoning services like MP3 players, terrestrial radio, and video- and Internet-to-the-vehicle." This was, in my opinion, a completely opposing position from the NAB-commissioned study. A point that caught the attention of the New York Post.

Now The Carmel Group is back with an extended "ping-pong" chart to prove that Sirius and XM did indeed compete with each other.

But, so what?

Proving that Sirius and XM compete(d) with each other has little to do with disproving that they are part of a broader relevant market. If two radio stations in a single market compete with each other, does that mean that they don't compete with other radio stations in the same market? Of course not.

Further, observing the competitive responses between those two radio stations won't give us any insight into the "continuing proliferation of outlets and rapid pace of technological change in the media marketplace" that the NAB is so worried about.

So all the "ping-pong" charts in the world are simply just exercises in futility.

[The Carmel Group Study (PDF) via AllAccess]
Thanks Derek!

Five organizations representing rural Americans from across the country voiced their support for the merger of Sirius and XM in a joint letter sent to FCC Commissioner Jonathan Adelstein.

The Federation of Southern Cooperatives/LAF and League of Rural Voters (who had previously filed comments with the FCC in support of the merger) were joined by three new groups: National Latino Farmers and Ranchers Trade Association, Intertribal Agriculture Council and Oklahoma Black Historical Research Society Project, Inc.

In their letter to Commissioner Adelstein, who himself is a South Dakota native, the groups list a number of consumer benefits for rural America that would result from a merger of the two companies:

"This merger is clearly in the best interest of rural consumers because it would allow a combined company to expand upon its existing services with increased efficiencies, and at the same time provide rural listeners with more diverse programming and lower pricing."

"A merger of Sirius and XM will make satellite radio a more viable option for rural consumers... even in the most remote areas," they added.

It's interesting to see Adelstein being the focus in this letter, being the only other Democrat on the FCC next to Copps. Commissioner Copps has expressed his doubts about the Sirius-XM merger, as well as about media consolidation in general. Adelstein historically has joined Copps in his opposition to media consolidation as well, a point he made very clear in his statements (PDF) regarding the FCC's 2003 review of Broadcast Ownership Rules.

However the rural groups don't ignore this point, concluding their letter with:

"Furthermore, the rapidly increasing homogenization of programming on terrestrial radio is leaving rural listeners at a disadvantage. Terrestrial radio broadcasters once provided rural listeners with a variety of local programming options that were tailored to individual communities. A merger of SIRIUS and XM will make satellite radio a more viable option for rural consumers by drastically increasing programming options, even in the most remote areas."

Read the full letter here (PDF).

The NAB has been curiously quiet as of late. First they take down the XM-Sirius banner, then a pro-merger piece in Roll Call goes unchallenged... an interesting change in direction considering the vehement opposition we've seen throughout the year (or the past 17 years depending on how you look at it).

Last week, FCC Chairman Kevin Martin expressed his desire to relax media consolidation rules, something that the NAB would very much want. Martin even wants to expedite the agency's review, hoping to conclude the proceeding in November and schedule a vote on December 18th.

Then yesterday, the NAB filed comments with the FCC over a series of research studies regarding media ownership for the Commission's pending quadrennial broadcast ownership review. Unsurprisingly, they urged the FCC to reform media ownership rules, stating that doing so would serve the public interest in light of competition.

"This continuing proliferation of outlets and rapid pace of technological change in the media marketplace further underscores the need for Commission action to update its ownership rules," the NAB wrote in the filing. "Only competitively viable broadcast stations sustained by adequate advertising revenues can serve the public interest effectively and provide a significant local presence." (emphasis added)

The argument that the NAB is using here is nearly identical to the argument that justifies the merger of Sirius Satellite Radio Inc with XM Satellite Radio Holdings Inc. If in fact the fragmentation of media, and the increasing technological choices that enable further fragmentation, were a reason for relaxed media consolidation rules - then the same rules would apply for a merger of Sirius and XM. And vice versa.

But time is running out... and fast.

Martin wants to fast-track the media consolidation decision, a point that has brought on the ire of big names like Barack Obama not to mention the bi-partisan opposition of Sens. Byron Dorgan (D-ND) and Trent Lott (R-MS).

The NAB doesn't need any further opposition, nor do they need the sword of "hypocrite" hanging over their heads during this important juncture. Time is running out, and battles must be chosen. If David Rehr has to pick one to lose, it might as well be to cede to the Sirius-XM merger in order to gain in relaxed media consolidation rules (which do you think its members want more?). A satellite radio merger, in the grand scheme of things, really has little effect on terrestrial radio considering that only 4.1% of total listenership is attributed to Sirius or XM. While relaxed media consolidation rules changes everything for the NAB's members.

As suggested in the Orbitcast Forums, a brilliant move would be if Sirius and XM both filed comments with the FCC in support of the NAB's comments. It would further solidify their arguments to merge, not to mention be a wonderful twist of the dagger in Rehr's side. As the old adage says, you can catch more flies with honey than with vinegar.

And this is afterall, politics.

Congressman Rick Boucher (D-VA) wrote a detailed op-ed piece that was published in Roll Call this morning.

Roll Call, which is published Monday to Thursday while Congress is in session, provides readers with news of the legislative and political maneuvers that occur on Capitol Hill.

In his piece, Rep. Boucher voices his support for the Sirius-XM merger, and points to his reasons as to why the merger would be in the public interest and why the relevant market should be considered in the broader sense.

"In the radio marketplace of both satellite and terrestrially delivered radio services, XM and Sirius occupy less than a 4 percent share of listeners. The balance is held by AM and FM stations. In the broader audio entertainment market of radio and Internet-based news and entertainment, XM and Sirius have an even smaller share. When one concludes that the broader market is the proper measure, it is clear that the merger would not hinder competition."

Now the real interesting part isn't just that Rep. Boucher is lending his support behind the merger. It's not even his arguments that are the point of interest here.

It's the lack of an opposing argument in this issue of Roll Call.

This op-ed piece was featured in the "Communications and Intellectual Property Policy Briefing" section of today's issue. Five subjects were covered in a similar format, and each had a point/counter-point argument.

Only the section on satellite radio ran without a counterpoint.

Apparently Roll Call couldn't get a counterpoint for this piece? Given the NAB's supposed influence on the Hill, this is very surprising.

Read Rep. Boucher's Op-Ed piece here (PDF).

I just received a report that the NAB has taken down the banner opposing the Sirius-XM merger from their Washington D.C. building.

Interesting...

Think you're a pro when it comes to Sirius or XM? Are you obsessed with the pending merger? (or quite possibly, sick of it entirely?)

Well test your Sirius-XM merger prowess with this handy-dandy Merger Mania crossword puzzle (PDF). And check your answers against the key, available here in PDF form, or just view them after the jump...

My personal favorite (well, aside from #25) is #49. They must have had fun putting this together.

Thanks RoadRunner!