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Opinion
Jul. 18, 2008
Copyright © Las Vegas Review-Journal

EDITORIAL: Just a few more conditions

These are heady times for the regulators at the Federal Communications Commission. The five members of the FCC board have before them a proposal that the nation's two satellite radio providers -- XM and Sirius -- merge into one in order to ensure the service survives.

With a simple "aye" or "nay," panel members will determine whether consumers who use this service can continue to get it -- or whether concerns about "media consolidation" are more important than the prospect of both companies going belly up.

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    • It should be a no-brainer. This is satellite radio, for goodness sake. It's a luxury item. Approve the $3.1 billion merger and be done with it.

    But, of course, it's never that simple. Especially when the egos of regulators and bureaucrats enter the equation.

    In order to get the proposal this far, both companies have already agreed to a number of stipulations involving prices, content and other issues. That led to FCC chairman Kevin Martin's eventual recommendation that the merger be approved.

    But Mr. Martin is only one vote. Robert McDowell, a Republican appointee to the panel, has joined Mr. Martin in supporting the deal. That's two votes. One more to go.

    So realizing that he could be the king maker, FCC commissioner Johathan Adelstein, a Democrat, announced this week that he'd vote in favor of consolidation -- with a few more conditions.

    First, Mr. Adelstein wants the new company to cap prices for six years. Then, he wants satellite radio officials to devote one quarter -- 25 percent! -- of their available capacity to "minority" and "public interest" programming.

    What next, demanding that the new company be named after his first-born child?

    This is a regulator run amok.

    Whether the companies agree to new conditions is up to them. But the fact that regulators choose to exert their power to win favors rather than simply judge this merger on its obvious merits speaks volumes about the real relationship between those who operate in the private sector and their government overseers.



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    Brian wrote on July 26, 2008 11:50 AM: I thought extortion was illegal. If you want certain programming, you pay for it. Not hold company's hostage to get what you want. Better yet, start your own company.


    dorn wrote on July 23, 2008 06:52 AM: Oh, let them get on with the merger already, before they both go out of business. Remember iridium and globalstar and friends and how well all that worked out? Satellite mobile services are hard and expensive to provide. There's tons of competition from cellular based services and other new alternatives. Let them have at least a chance to survive...


    ANDREW wrote on July 22, 2008 05:47 PM: andrew from Newark ,LETS THEM MERGE ALLREADY THE FCC IS FULL OF IT


    Ba Ba Booey wrote on July 18, 2008 10:06 AM: George, you are a moron. The DOJ already said that the merger does not create any type of monopoly. When Sirius and XM first started there wasn't much in the form of competition. Now there is terrestrial radio, iPods, HD radio, and WiFi radio is right around the corner. Talk about dangerous precedents...why was Exxon-Mobil approved so fast yet Sirius-XM is still being held up?


    Jack wrote on July 18, 2008 08:27 AM: Wildbill, Stearn is the smelly end of a horse who should never be allowed on the radio anywhere.
    I let go my subscriptions to Sirius because the announcers would not shut up and they started playing thinly veiled commercials, I get those free now. It is a luxury item as George said. I can do without it just like cable.


    Divided AMERICA wrote on July 18, 2008 06:59 AM: America's division and decline: First came MOVEMENTS (black 60s-present, women 70s-present, immigrant 90s-present, gay 00s), for special rights, which lead to PROGRAMS which require more GOVERNMENT agencies which need more TAXES which creates more and more DEBT. Today, we are nearly 10 Trillion in Debt, causing weak dollar which causes prices for basics to go up (food, gasoline etc).

    The "minority" proposal show MOVEMENT (division) is still present. "Minority" is an abused and mis-used word, typically used by Black groups to hide behind the division they are creating.

    To fix the problem, a swift yet compassionate reversal must occur. As President, I will declare to the people that America is hurt. That to repair the injury we must end the Debt, reduce Taxes, reduce Govt and eliminate programs as every person has equal rights and equal duties, we all must care for our country as Americans.


    Vegas wrote on July 18, 2008 06:12 AM: Ignorant people know they don't know things and try to get an education.

    Stupid people don't know they are stupid. Therefore they remain stupid forever.

    Ignorance can be corrected, but, you can't fix stupid.


    wildbill wrote on July 18, 2008 06:11 AM: One other point behind the oppositionists...How many of them receive money from the NAB or Clear Channel? It's a vendetta against Stern since he left CC. Maybe if they stood up to the FCC and their fines against him and the company, he may still be there. It's a shame that I have to pay $12.95 a month to have my "Freedom of Speech"......


    Vegas wrote on July 18, 2008 06:04 AM: George, do you know the difference between ignorance and stupidity?


    GEORGE wrote on July 18, 2008 03:52 AM: Even if satellite radio is a luxury item, they are still creating an unregulated monopoly. This is a dangerous precedent.


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