FMQB - "John Kerry Cautions FCC's Martin Against Satellite Merger"

News Article

FMQB - "John Kerry Cautions FCC's Martin Against Satellite Merger"

Sen. John Kerry (D-MA), has written an open letter to FCC Chairman Kevin Martin, urging him to very closely consider the XM-Sirius merger, and not to rush to approval of the deal. The letter, sent to the FCC Chairman last week, notes that while the Department of Justice did not find evidence that the merger companies would "substantially lessen competition," "serious concerns remain as to how this merger will impact consumers if it is permitted to go forward."

Kerry references the 1997 FCC Order allowing for the creation of the satellite radio companies in the first place, and the oft-quoted passage that "one licensee will not be permitted to acquire control of the other remaining satellite DARS license." He adds that "the financial incentives to consolidate are indisputable" for the two satcasters. "It does not follow however that it would be in the public interest for these two competing entities to merger." Kerry says that "if left unchecked," the merged satcasters could have "monopolistic powers" leading to "diminished service at increased rates to consumers."

Speaking as a senior member of the Senate Committee on Commerce, Science and Transportation, Kerry urged Martin and the FCC to "resist rubber stamping the Justice Department's determination that sufficient competition exists. Should the FCC determine that this merger does indeed serve the public interest, I urge you to consider appropriate conditions that will effectively protect the American consumer from what could prove to be an entity with strong monopoly power."

Source