DOJ decision paves way for more satellite mergers

Monday, March 31, 2008 at 8:47 AM
Tags: ICO, Merger, Mobile Satellite Services, Satellites
ICO G1 Satellite
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]

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Comments

DOJ can't have it both ways. If echostar/directv "merger" was deemed a MONOPOLY and not allowed, then the same should go for the Sirius/xm "merger" making a MONOPOLY.

"We ask the court to block the merger because it would substantially lessen competition, in violation of the Clayton Act."

"that kind of loss of competition is a recipe for higher prices and lower-quality service. The court should prohibit the merger."

" The competition has benefitted customers in many ways, including lower prices for programming and equipment, better programming packages, availability of local broadcast channels, and special promotions."

"it would be extremely difficult and expensive for any new direct broadcast satellite competitors to enter the market, and that there are no satellite broadcast frequencies available that cover the entire continental United States so a competitor could offer a nationwide service."

http://www.iowa.gov/government/ag/latest_news/releases/oct_2002/Echostar_.html


Sound familiar ladies? Wake Up fanboys before satrad goes bellyup with the "merger" MONOPOLY.

That would not hurt satrad but gives dish and direct a reason to go after a merger again. They also use different receivers and use the same antenna just like Sirius and XM.

Some receivers do tune Dish and Direct they started making them when they thought they were going to merge years ago.

Funny how the dual satellite TV receiver took no time at all to make and Sirius and XM after years still have not done it??

The FCC told satrad they had to make radios that work with all satrad and they did not do it??

Still some dont realize that monopolies characteristically have:

1- existing large profits
2-substantial market share

Neither of which xm and siri will have, even after the merger is completed.

How many momopolies can you name in history that only commanded 5% of the market.....? Go ahead, start your list.

scott lind,

We're talking about the Sirius/xm "merge" MONOPOLY However it seems you don't understand what a MONOPOLY is.

Now if we were talking "momopolies" then perhaps you might understand.

When the only two companies in the satrad industry want to "merge" MONOPOLY then your market percentage argument is BS since in the US satrad market Sirius/xm together have 100% of the sat radio market since there is no other providers.

The TRUTH is much better than satrad fanboy folly.... Sirius/xm "merge" MONOPOLY BS market percentage means nothing. Prices will go UP, Choice and Competition will be GONE.

So if this really happens Dish and Direct TV can merge so we can pay more per month for basic satellite TV.

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