FCC says XM and Sirius merger unlikely

By Justin Mann on January 23, 2007, 8:53 PM
With concerns of a potential market monopoly, Kevin Martin, chairman of the FCC, has stated that it is unlikely Sirius and XM would be allowed to merge. As they are pretty much the only option as far as satellite radio goes, with a single driving force behind them it becomes all to easy to price gouge customers who want it. Given that both companies have been losing money, they have been seeking avenues to pick up business, a merger being one of them:

Both Sirius and XM have been battling it out for the last several years and in 2006, both companies saw their revenues drop as well as subscriber numbers drop. This peaked a notion in the industry that it was very possible that the two companies were in negotiations to go through a merger.
The FCC has a good point, whether or not the companies are faltering as-is. Then again, what good is having two providers if there's no market for the product. Satellite radio has been slow to take off, and faces even more challenges with media players now being so easy to integrate with cars.

User Comments: 1

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howzz1854 said:
a smple merge won't solve the fact that paying $12 a month for something that sounds no better than a 64kbs Mp3 and limited choices of stations (and let me clearify that i did hardwire my system, and my friend's built in XM in his TSX didn't sound any better either). you get about average 3-4 stations per genre. i recently just canceled my subscriptions with Sirius satellite radio. and let me say it wasn't easy, not because i didn't wanna leave but because they made it so difficult for you to cancel your service. not only they require you to call them, i waited an hour on the phone and one time even got dropped from the que. and when i get to the rep, he wouldn't stop husstling me about keeping my subscription, it all feels too much like the days of the AOL when you want out and you couldn't. boy am i glad that i am finally out. i think satellite is a good concept, but if they can't focus on sound quality, what good is quantity. bottom line is, you're only paying for the none commericials. i am going HD radio.
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