Here's a fun ongoing trend: organizations that are willing to accept the burden of responsibility - in the name of "public interest" - by asking the government to mandate that they get a piece of the Sirius-XM action.

First we had U.S. Electronics and Georgetown Partners, either of whom want "open network access" or a chunk of the bandwidth, and now iBiquity - the folks behind HD Radio - has joined the fray.

They conveniently ask the FCC requires that HD Radio be included in all satellite radio receivers, and that a merged Sirius-XM terminate all exclusive agreements with suppliers, retailers, and the OEMs. How generous of them.

Mark Ramsey sees this as a sign that HD Radio is hurting in its efforts to garner support from Detroit. It also might be a signal that the merger opposition from the NAB is coming to an end.

Satellite Radio TechWorld points out that Sirius and XM worked their respective asses of to build that OEM support, and that approving this would be unfair to the satellite radio industry. "iBiquity appears to want a free ride."

And the discussion is even more heated over in the Orbitcast Forums.

It seems to me that HD Radio/iBiquity needs to move more towards the "if we can't beat 'em, join 'em" attitude, and try working with satellite radio. If iBiquity wants to be embedded in all satrad receivers - maybe they should try a different approach.

Obviously HD Radio isn't something the public wants, but they have another asset that Sirius and XM want: bandwidth. Maybe it's time for less vinegar, and more honey.

[Satellite Radio TechWorld, Hear 2.0]
Thanks to everyone who sent this in!

Just a quick bit from FCC Commissioner Robert McDowell on the merger's status at the FCC, since I know everyone is falling apart from merger-fatigue.

"I don't have a fully formed view just yet," said McDowell to B&C, but suggested that he looks at it as a market beyond just satellite radio.

"I'm a free over-the-air radio listener," he said "I'm too cheap to subscribe to XM or Sirius." Adding that, if you're under 30, you are listening to an MP3 player in your car or wherever. "So that is the audio market in general."

But it's still not cut and dry just yet... hence the lovely delay in making a decision.

"There are other public policy implications, either going from two to one in that kind of business or reversing prior commission policy."

McDowell added that he is still "asking questions" about what the audio markets is, and what is national vs. local.

[Broadcasting & Cable]

With analysts and FCC Commissioners indicating a decision won't come until next quarter, not to mention only a few government-decision days are left until the new year, it looks more and more like we'll be on the edge of our seats into 2008.

Former FCC Chairman, and current hired gun for Sirius (of the Wiley Rein namesake), referenced this during a recent teleconference with Wall Street analysts led by Bear Stearns' Victor Miller.

"DOJ always goes first in this area," Wiley told analysts on Wednesday. "It is looking more and more like a 2008 decision."

Wiley then added, "If I had anything to say, I couldn't say it, but I don't have anything to say."

[Radio & Records via Orbitcast Forums]

FCC Commissioner Jonathan Adelstein, one of the two Democratic members of the FCC, spoke with NPR yesterday and gave some insight into the timing of the Sirius-XM merger decision.

During the interview on NPR's "Talk of the Nation," which focused primarily on the recent media consolidation ruling, Adelstein indicated that the DOJ's decision could be coming "shortly" and that the FCC's own decision would come in the first quarter.

"We’re hearing that action could be coming shortly but I don’t want to predict for sure, and then sometime after that presumably the FCC would act," said Adelstein in response to a caller. "I think probably in the first quarter of next year."

Of course the FCC Commissioner is using all the safe-words, but it's the first solid indication of timing - aside from various analysts' DC contacts - since FCC Chairman Kevin Martin said a decision would be coming in Q4. Adelsteins comments also coincide with a report from RBC's David Bank, which indicated a DOJ decision by the end of the year, and an FCC decision in February.

Listen to the audio snippet below:

[Listen to the full audio, or read the transcript]

The Federal Communications Commission has removed the item involving Satellite Radio repeater towers from today's meeting Agenda.

In fact, it wasn't just removed. It was adopted.

The Open Meeting, schedule to take place at 10:30 am ET today (i.e., right now), was supposed to focus on Sirius and XM's terrestrial repeaters, and the rules governing them.

But according to an update issued this morning on the FCC's website, the item has been deleted from the Agenda, Further, the "Establishment of Rules and Policies for the Digital Audio Radio Satellite Service in the 2310-2360 MHz Frequency Band" has been adopted by the Commission.

That's an interesting last minute development.

[FCC Meeting Agenda Update (PDF)]

The merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. will likely get the DOJ's seal of approval by the end of this year, with the FCC predicted to follow suit in early February, according to RBC Capital analyst David Bank.

In a recent research note, RBC wrote that their sources in D.C. indicated that the DOJ is likely to approve the merger before the end of the year. While reports of an imminent decision were obviously incorrect, RBC still finds that Assistant Attorney General Thomas Barnett - who ultimately rules on the merger - will be leaning towards an approval.

At this point, the FCC's 180-day timeclock has become "immaterial" (obviously) and Bank estimates that the FCC won't make a final decision on the Sirius-XM merger until "early February at best." RBC sources indicate that the FCC is predicted to be 1-2 months away from fleshing out all the conditions to the merger (such as pricing, interoperability, unused bandwidth, indecency, etc.).

The FCC also recently began publishing a list of "Items on Circulation" - a weekly list used to provide better transparency into what the Commission is currently reviewing - and the Sirius-XM merger is not on the list. So a decision by the year-end is unlikely.

Remember that the DOJ looks at competition as far out as two years from now when analyzing the marketplace.

A year ago, Apple and Google were not players in mobile devices, and Microsoft was not behind a disruptive force for in-vehicle entertainment. Bank, citing the iPhone specifically, feels that mobile audio entertainment on cellphones "will likely be ubiquitous" using this perspective.

Thanks Sam!

Despite yesterday's hoopla over a letter written by Reps. Conyers and Chabot to Attorney General Michael Mukasey, the Sirius-XM merger is still on track an analyst said today.

Stifel, Nicolaus & Co. analyst Blair Levin said that while the DOJ has struggled with the decision and the final outcome is a close call, he believes the department will green light the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

Investors right now are on a hair trigger, waiting for the slightest indication of where the merger decision will go. After the news broke yesterday, shares of both XMSR and SIRI fell sharply - XM shares dropped nearly 10% Wednesday.

Still, despite the legislators' skepticism, Levin said the deal is still moving forward.

"It's possible the Department of Justice will still try to block the deal and that there's been some sort of leak, but we don't believe the reported letter ... means there is a greater chance of DOJ opposition," Levin said in a client note, noting a decision could come any day.

[AP]

The Federal Communications Commission will focus on Sirius and XM's terrestrial repeaters, and the rules governing them, at their next meeting to be held on Tuesday.

The Open Meeting, which will take place at 10:30am, will address a whole slew of other issues as well, including localism, cross-media ownership, minority ownership, and sponsorship identification rules (infomercials).

But the focus on satellite radio will be on repeaters, and the co-existence with Wireless Communications Service (WCS) licenses. Here's the snippet from the Agenda for those who enjoy reading government-speak:

TITLE: Establishment of Rules and Policies for the Digital Audio Radio Satellite Service in the 2310-2360 MHz Frequency Band; Amendment of Part 27 of the Commission’s Rules to Govern the Operation of Wireless Communications Services in the 2.3 GHz Band.

SUMMARY: The Commission will consider a Second Further Notice of Proposed Rulemaking seeking additional comment on the appropriate rules and policies for licensing satellite digital audio radio service (SDARS) terrestrial repeaters in the 2320-2345 MHz frequency band, and will consider a Notice of Proposed Rulemaking seeking comment on facilitating the coexistence of SDARS and Wireless Communications Service licensees.

[Public Notice (PDF)]

We're now on day 181 of the 180-day FCC timeclock, and many folks are undoubtedly scratching their heads (or biting their nails).

But a quick look at some of the other major transactions that the FCC had, or has, on its plate shows that this isn't necessarily out of the ordinary for the Commission:

• Adelphia Communications, Time Warner, Inc., Comcast Corporation - 404 Days
• AT&T Inc. and BellSouth Corporation - 253 Days
Clear Channel Communications, Inc. and Lee/Bain - 350 Days
• Tribune Company and Samuel Zell - 204 Days
• Verizon Communications Inc. and FairPoint Communications - 266 Days
• Liberty Media, DirecTV - 287 Days

So when Watts said that the FCC review of the Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. transaction could take longer, well, he meant it.

Of course, the DOJ still needs to reach a decision as well, and they don't have a timeclock to adhere to - no matter how arbitrary it may be.

At yesterday's UBS Global Media conference, XM Chairman Gary Parsons said that the Department of Justice will have to approve the merger within a week or 10 days for the deal to go through this year. (UPDATE: Gary's reference to ten days had to do with getting the approval in 2007. He was not claiming that the deal was over if they didn't get the approval in the next 10 days. Sorry for the confusion.) That doesn't leave much time left.

Good, because I don't know about you, but I'm getting a little sick of this.

Last Friday, representatives of the NAB met with the FCC to chit-chat about none other than the Sirius-XM merger.

Those in attendance from the FCC were Helen Domenici (Chief of the FCC's International Bureau), Roderick Porter (Debuty Bureau Chief of the International Bureau), Gardner Foster (Legal Advisor) and Robert Nelson (Chief of the FCC's Satellite Bureau).

The NAB reps left behind a memorandum, which was subsequently filed with the FCC, which focuses completely on the spectrum usage. They argue that if Sirius and XM were allowed to merge, it would give them complete control of that piece of the spectrum (which historically the FCC has shied away from). This isn't much of a breakout from the NAB's prior arguments, but they are thin-slicing the subject.

Obviously, the NAB hasn't given up just yet. We are at Day 180 of the unofficial 180-day timeclock. Sure, the FCC could take longer, but this can't last forever... I hope.

[Read FCC filing (PDF)]