State AGs voice merger concerns in meeting with FCC's Adelstein - Orbitcast
Johnathan Adelstein
A smattering of Attorneys General spent roughly 45 minutes on the phone with FCC Commissioner Jonathan Adelstein, on Wednesday, voicing their concerns about the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.

According to a WSJ blogpost, Rob McKenna Washington State's Republican AG and Connecticut's Democratic AG Richard Blumenthal joined assistant AGs from 8 other states to press the commissioner to vote against the deal, or at the very least, place tough conditions on it.

They also expressed concern about the lack of an interoperable radio that would work with both services, as well as the "significant harms" that would result from "the loss of a direct competitor."

"The states further explained that the lack of an interoperable radio is emblematic of the licensees' disregard for competition and consumers and urged that the licensees should be required to make the intellectual property for an interoperable receiver freely licensable and available for manufacturers and standards setting bodies," wrote the Attorneys General in a recent ex parte filing.

"The attorneys generals have a number of serious concerns," said Adelstein sharing their concerns. "They have a feeling that the Justice Department did not pay proper deference to their concerns when it issued its opinion ... In this case, those concerns were dismissed and there was no proper audience given to the attorneys general."

"I think it is important that the FCC, after such dismissive treatment by the AGs, take extra consideration on the very legitimate concerns that the attorneys generals are raising," Adelstein told reporters.

When asked how he planned to vote on the merger, Adelstein said it would depend on how the deal was conditioned.

[View FCC Filings (PDF) via WSJ Deal Journal, Broadcasting & Cable]

47 Comments

Good maybe this will finally die and go away as this stupid merger does not benefit the consumer.

the only ones who believe this won't benefit the consumers don't listen to sat radio, and the NAB.

anyone who listens to sat radio looks at this as a good thing.

face it, WITHOUT the merger XM is going to go bankrupt. So any XM listeners who are against this merger are idiots.

Also, it doesn't take a rocket scientist to realize that XM and Sirius will actually become MORE competitive once this deal goes thru. FINALLY they can focus their energy on the REAL competition instead of canabilizing each other(which is what they are doing).

They WON'T raise prices! They've already agreed to LOWER them. And to provide a la carte options. Currently if you want to listen to the NFL and MLB you'd have to buy two services and radios!

Don't forget sat radio is competing with FREE radio, ipods and future options like internet radio. They will NOT raise prices!!!! Anyone scared about this is insane...or more likely shorting the stock and trying to scare people to sell.

The programing will go thru some changes, and consolodation, but the best of both will survive, not to mention more and better stations coming.

Mel has lived, eaten and breathed radio his whole life. He took infinity from a $17 stock to over $170 when it merged with CBS.

He will do EVERYTHING in his power to grow the company and benefit the consumers.

I dont get it... If the fact that there is only 2 companies and both are bleeding money... one of them if not both of them are going to go bankrupt. Then does the consumer benefit?

Additionally, the FCC isnt suppose to be reviewing the matter of anti-trust.. that was the DOJ's job.

Those AG's need to go back and work on there state laws and stay out of the federal process.

Adelstein, deny the merger so XM goes belly up!! That will help consumers.

Go ahead A.C. aka nab fanboy! write that same recycled post you always do..its a matter of time your ignorant comment makes its way here!....

OK NAB-Coward in 3-2-1 ...... Blah Blah Blah Merge monopoly Blah blah blah Fanboys Blah blah blah ignorant blahBlahBlah...

Come on NABCoward we know you are out there.

I don't see how spending more money on a radio to get all SIRIUS and XM channels is a win for the consumer, at this point in time you would be restricted to some channels from the other service, and lets not forget that SIRIUS has massive debt as well so it stands the chance of going out of business anyway, in a rescission people tend to cut back on this stuff. The big wigs have over spent and ran these companies into the ground and I don't see them around more than 3 years unless someone buys them out. The whole thing is a disaster and I honestly don't see either company surviving very long. I hate to see satellite radio in such a mess, a great concept is slowly dieing and the big wigs will bail with their golden parachute. The fact is unless satellite radio makes a profit it will go away, as it has yet to turn a profit 7 years later.

Satrad has been unsuccesfully workig on a practical interoperable reciever - these guys are technical morons.

XM will go bankrupt (PERIOD) Stay strong Mel.

Who cares... let them vote 4-1 for.

It's pretty obvious guys, if this merger does not go throu we are all going to need to buy an Ipod or other mp3 player. In my opinion, I would rather have to deal with 1 satellite comany that has commercial free music. The Nhl, Nfl, Mlb, Nba, Nascar,etc. than deal with multiple free terrestrial companies that broadcast censored music,and commercials.

Only seven tears. The company is still a baby. You are taking about a life altering product. Sirius is up against a giant. The NAB and there crew of bandits have publicly and blatantly held down and strong armed our government playing them like puppets. This whole thing being drawn out sort of reminds me of a corrupt government and really gives you an uneasy feeling about the whole thing. Sirius is on the verge of exploding any day now and the the best radio on radio will become a fierce ground breaking next need to have products. Don't listen to the nay sayers for they have no faith and yet we are still here. Haven't you all said that this merger wasn't going to get approved??? I guess you were wrong with that one....LOL LOL LOL LOL LOL LOL LOL.....And i will be laughing all the way to the bank.

If XM does go bankrupt it might not be the worst thing.. they could reorganize their finances that way.. instead of bleeding to death...

AC, do you really think any bank will lend either one of these companies any money? I doubt it? Look at economy, it's going down the shitter. With the fact, that currently they are not even profitable, I believe that these companies (yup SIRIUS and XM) wont be around in the next 10 years without a merger, and if that happens, we all get to hear Clear channel crap,again, No Thank you!!

When did the Government turn into the Politburo?

Talk about desperate and crying, the blind, ignorant, satrad "merge" MONOPOLY fanboys.... Some are so desperate for any excuses, even using BS to try and justify a "merge" MONOPOLY which WILL be more expensive for consumers, with less content, less choice, and no direct competition which is the number one reason for most of the positives in satrad as it is currently known. Do we all want seamless radio, with little to no commercials? sure but this "merge" MONOPOLY is not good for consumers and is not good for the satrad industry. IF neither current satrad company can survive GOOD, BYE BYE THEN, there is a market for satrad with the right business plan and the right management in place let other companies come behind pick up the pieces at cheap prices and make a go of it. Just because Sirius and xm have sucked in the business aspect of satard in their short histories doesn't mean laws and agreements should be broken to allow them to become a "merge" MONOPOLY and in turn SCREW the consumer.

Why do people keep insisting XM will go bankrupt. Sirius has a lot more to catch up to than XM. They've got fewer subscribers, are way to dependent on Howard, and Sirius is suffering from the same doldrums.

It's pathetic when our society takes on the attitude that going bankrupt might not be the "worst thing". It is the WORST thing. And, wow, we have some pathetic politiciians in this country. THIS COUNTRY NEEDS FREE CAPITALISM MORE THAN EVER! Back down and let business conduct business. THIS IS IN THE INTEREST of all parties involved, except those who must compete with SatRad. End of argument. And even that competition in a net positive.

NO! to desperate, blind and ignorant NAB fanboy. Come on desperate, blind and ignorant FM radio warrior fanboys, your cheerleaders for NAB dominance. Talk about desperate and crying, the blind, ignorant, FM radio fanboys.... desperate for any excuses that your ignorant blind head thinks of

wake up desperate, blind and ignorant Fm radio fanboys!!!!!

Yes! to merger
No! to AC posts!

If only our intrepid ( rhymes with decrepit ) boy wonder George W had spent even a fraction of the time this merger is taking before deciding to go on an Easter Egg hunt for nonexistent weapons of mass destruction, perhaps our country would have an extra 4100 young citizens and 2 billion dollars more per week to put in the coffers. Has anything in recent memory created such controversy as these two companies trying to merge? If two companies that have never made a profit and who's product is virtually owned by no one - remember, 95% of radio listeners don't have it - constitutes a monopoly, then they need to change the definition in the dictionary cause I looked it up and from what I read this situation isn't even close to one. It is laughable to even use the word monopoly in this case; satellite radio is only one of dozens of alternatives available to the consumer. There are so many people listening to their I-Pods who don't even listen to any type of radio that it makes you wonder what all the commotion is about? Hey FCC, you have your panties in a wad for no reason! Satellite radio isn't going to bring life to a screeching halt; it's just a niche product that appeals to a limited audience, and most people won't pay for it anyway because they are either too cheap or too stupid. They would rather have free monotonous, insufferable, same 20 songs every day radio. They know a bargain when they see one, those old school rascals! By the way, I turned on regular radio today for about 30 seconds and I came close to vomiting - it was absolutely heinous. I went back to Sirius and the nausea went away within seconds! Our government - is it really ours anymore?- needs to stay the hell out of this. Better yet, they need to allow the merger with NO concessions. All they need to do is pretend that Sirius and XM are oil companies and that the product that they sell is absolutely essential for people to live their lives. Presto, no more monopoly!

He looks like Al Gore tying to get Florida recounted for the 3rd time...

You morons don't get it. If one goes bankrupt, then they both go bankrupt. Neither is any better off than the other. The sooner you know it all morons figure out how to read a balance sheet and financials, the sooner you'll learn a thing or two about the stock market and business. If you truely think that Xm is going bankrupt, then be prepared because they're bothing going bankrupt.

Dopes

You morons dont get it. If one goes bankrupt, then they both go bankrupt. The sooner you idiots figure out how to read a balance sheet and financials, the sooner you'll figure out that neither is any better off than the other. If Xm goes bankrupt, then be prepared because they both go bankrupt.

Dopes

No kidding, that's my point and if they both go bankrupt, we will have to listen to terrestrial radio or all go buy ipods and mp3 players.

Antitrust has already been cleared. AG's are Nagels

The DOJ has approved the merger! The FCC will soon follow this week!

If they stop spending after the merger they will report record earnings.

They should reduce the work force and concentrate on profits.

The growth will happen on it's own.

It's true.. it's all true... well there you go then.. I think everybody makes a good point and the truth is ham is ham.. and eggs are eggs ... why does one have is and the other one are?? I don't know.. proper english I guess.. but still, at the end of the day, hay is butter and milk makes cheese.. footballs are made of leather.. gas is made from crude oil... hamburgers are made from cows, and cats make a good snack... I guess that pretty much sums it all up... the meaning of it all..

"AC, do you really think any bank will lend either one of these companies any money? I doubt it? Look at economy, it's going down the shitter. With the fact, that currently they are not even profitable, I believe that these companies (yup SIRIUS and XM) wont be around in the next 10 years without a merger, and if that happens, we all get to hear Clear channel crap,again, No Thank you!!"

Ten years?? you're optimistic.. think months not years, for the reason you say "the economy is going in the shitter"... this merger was a mistake because there may be no recovery even if it is completely approved, regulated as it probably will be, or not...

The only ones who believe this won't benefit the shareholders buy the nonsense spewed by Mel.
Anyone who listens to sat radio looks at this as a bad thing.
Face it, both companies will survive WITHOUT the merger, as they have made clear in their merger filings. XM is not going to go bankrupt, so no need for XM listeners to look forward to the merger for hope of survival.
Also, it doesn't take a rocket scientist to realize that XM and Sirius will actually become LESS competitive once this deal goes thru. FINALLY they can focus their energy on cutting costs rather than worrying about that creative programming stuff.
They’ll be raising prices! Sure they’ve announced lower a la carte options, if you want to buy a new radio. But notice they haven’t said a word about Family plan pricing. Seems like a good place to increase revenue. If they would have just followed the FCC mandate, you wouldn’t have to buy two radios to listen to the NFL and MLB!
The programming will go through major changes and consolidation. I can hardly wait for Fine Tuning, The Village, and Beyond Jazz to be replaced by single artist channels and the radio equivalent of the Shopping Network.
Mel sure has a record of breathing innovation, variety, and life into terrestrial radio – NOT! Do we really want him wrecking satellite radio as well?
He will do EVERYTHING in his power to grow the company and benefit the shareholders, to hell with the listeners.

With imbeciles like Adelstein representing the Democratic party, I swear I will never ever vote for another Democrat again. I've always leaned towards the left, but this merger process and obvious corruption and lunacy by Democrats has once and for all made up my mind. Democrats = unrealistic, corrupt, imbeciles!

Maryland's AG is a disgrace. He had already been sanctioned by the State Bar for unrelated unethical conduct.

NO! to "merge" MONOPOLY
NO! to blind, ignorant "merge" MONOPOLY fanboys

The only ones who believe this won't benefit the shareholders buy the nonsense spewed by Mel.
Anyone who listens to sat radio looks at this as a bad thing.
Face it, both companies will survive WITHOUT the merger, as they have made clear in their merger filings. XM is not going to go bankrupt, so no need for XM listeners to look forward to the merger for hope of survival.
Also, it doesn't take a rocket scientist to realize that XM and Sirius will actually become LESS competitive once this deal goes thru. FINALLY they can focus their energy on cutting costs rather than worrying about that creative programming stuff.
They’ll be raising prices! Sure they’ve announced lower a la carte options, if you want to buy a new radio. But notice they haven’t said a word about Family plan pricing. Seems like a good place to increase revenue. If they would have just followed the FCC mandate, you wouldn’t have to buy two radios to listen to the NFL and MLB!
The programming will go through major changes and consolidation. I can hardly wait for Fine Tuning, The Village, and Beyond Jazz to be replaced by single artist channels and the radio equivalent of the Shopping Network.
Mel sure has a record of breathing innovation, variety, and life into terrestrial radio – NOT! Do we really want him wrecking satellite radio as well?
He will do EVERYTHING in his power to grow the company and benefit the shareholders, to hell with the listeners.

Posted by: Uncle Freddy
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Well said Uncle Freddy! To bad the rest of these fanboys can't see Karmazin's true colors. He ruined FM, Sat Rad is next. A monopoly never ever works.

Nab .... Please send your check to Uncle Freddy, PO box 187632, Topeka, KS 49816

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Hey Addle-brain ... let's talk about this for another year. WTF what 11 AG's want. 39 want the merger. Since when do you jackasses expect 100% to place nice 100% of the time. Get a job man.

Let's not forget that Attorney General J.B Van Hollen from WI has ties to terrestrial radio..... and who knows how many of the other AGs simply don't give a damn about whether or not Sirius-XM merge, but are doing their buddy in WI a favor.... But why not, let's talk about this for another year. Wow... craziness.

Okay ... I be serious.

IF (and it appears to be the case) that the FCC is trying to make 100% of the people 100% happy, 100% of the time, this is an impossible task especially with the rodents (people like Georgetown) trying to muscle in their take. Congressmen want to grandstand, AG's want to appear proactive, niggers (..not blacks mind you .... Niggers, EG ... Georgetown) want free welfare, the NAB wants to create merger burdens and tie the hands of a competitor. EVERYBODY wants something.

The FCC needs balls that they don't have.
Just make a decision you nutless wonders.

XM Listener, you seem so confident that the combined company is going to raise prices, even after the 2 companies came out with the "a la carte," pricing. Can you explain how you can draw this conclusion? Logical sense, seems to tell me that since terrestrial radio is free, that prices won't go up, or they risk lossing customers.

This merger isn't going to happen in the way the companies thought. Major concessions to bandwidth, pricing, content, possibly content regulation.

If this were a slamdunk, as most people THINK it ought to be then this would be done. It's nt and there is a huge price that is going to need to be paid to save these puppies from imminent bkcy.

When the numbers come out tomorrow a.m., watch for a major major sell off. There may be just asks and no bids. Great job mel and company. You guys, that's XM and Sirius, destroyed what could have been great. Congrats.

Why do people keep insisting XM will go bankrupt. Sirius has a lot more to catch up to than XM. They've got fewer subscribers, are way to dependent on Howard, and Sirius is suffering from the same doldrums
==========================================================================
Answer is Because of how XM gets subs. It is not the number of subs that tells the story.
It is what the cost for each sub is and how much of the sub money XM gets year after year. So many XM subs are GM cars and XM gets only half the sub money from them because they share it with GM.

It was a bad deal and is what is bringing XM to the point were Sirius is buying XM.
That is not the whole story but a good part of it. XM thought all that was needed was to give away radios and content did not matter.

mitchman79k = blind, ignorant "merge" MONOPOLY fanboy

NO! to "merge" MONOPOLY
NO! to blind, ignorant "merge" MONOPOLY fanboys


OOhh now there is some intelligence. Sounding like a broken record player.

CNBC just had an alert on the screen saying that the Merger passes at the DOJ. HELLO. OLD NEWS!

Why does everyone seem to think the company will screw the listeners for the stock holders? Maybe my view is wrong, but the subscribers pay the fees that make the shareholders money. If they change the format and start playing Milli Vanilli farts the alphabet, I will cancel my subscription. If they raise rates, I will cancel my subscription. If they play Clear Channel Crap, I will cancel my subscription. If they do anything to screw the listeners I bet they cancel their subscriptions. Where will the company get the money for the shareholders? Screwing the listeners is the last thing that the company will do.

Come on people, this is not a food source or even an energy source. I would classify this as a luxury item. We are not bound by massive contracts, or huge fees if you want to get out of your subscription. Go see Verizon about that. We have choices.

I would maintain that the best predictor of future behaviour is past behavior. So let's look at Mel. Has he increased shareholder value for the companies he's managed? Absolutely. But what about the listener experience?

1. When Mel ran a terrestrial conglomerate, did playlists expand or tighten?
2. Did the minutes set aside for commercials increase or decrease?
3. Looking more recently at his time with Sirius, did that service increase or decrease the number of channels devoted to niche formats?
4. Has the number of single-artist channels on Sirius increased or decreased with Mel at the helm?

Answer those questions, and you'll know why some of us have a hard time envisioning Mel as the savior of satellite radio.

I don’t think single artist channels are an efficient way to program a station. There is a balance between being demographic specific, and a nitch so small there would not be enough listeners to off set the cost of operating that station. The cost of a couple nitiches could be diluted, but I don’t think they would be able to run but a few.

Mel..... Alan... can you hear me....it's me, Plowboy

Screw the merger. Dump it and nail XM to the cross. Make your own monopoly.

NAB fan boy = blind, ignorant "FM radio fanboy

YES! to "merge"
NO! to blind, ignorant "FM radio warrior fanboy

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