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FCC approves satellite radio merger
Posted: Sat, Jul 26, 2008, 9:17 AM ET (1317 GMT)
The Federal Communications Commission (FCC) formally approved the merger of the two satellite radio providers in the United States late Friday, ending an effort started 17 months ago. On a 3-2 vote, the five FCC commissioners approved the merger of Sirius Satellite Radio with XM Satellite Radio. The approval comes with conditions, including a three-year freeze on subscriber rates and nearly $20 million in fines for failing to create interoperable radios and violating FCC rules for signal-boosting terrestrial equipment. Those conditions are not expected to derail the merger. The two companies, which combined have approximately 18 million subscribers, announced plans to merge in February 2007, but ran into extensive delays winning regulatory approval. The Justice Department's antitrust unit approved the merger plans earlier this year, leaving the FCC as the final hurdle to completing the deal. How the two companies will combine the infrastructure over the long term, including their fleets of satellites, has yet to be determined.
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