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Radio merger waiting on FCC

Now that the Justice Department has endorsed the $13 billion marriage of XM Satellite Radio and Sirius Satellite Radio, all eyes are on the Federal Communications Commission, which could hinge approval on one or more conditions.

So far, District-based XM and Sirius of New York have introduced an "a la carte" programming scheme that includes packages priced at less than the companies' existing $12.95 monthly subscription fees. The companies also promised to introduce "interoperable" radios capable of receiving both signals.

But a slew of proposed merger conditions from interested parties have cropped up in recent months.

Private equity group Georgetown Partners wants the commission to require a combined XM and Sirius to lease one-fifth of their total channel capacity and infrastructure to a "totally independent and unaffiliated third party, such as Georgetown, to remedy the anti-competitive monopoly that would otherwise result," according to the company's FCC filing.

HD Radio pioneer iBiquity Digital thinks any new satellite-radio receivers should be equipped to play both over-the-air broadcast radio and HD radio, a requirement it says should last for three years in cars and one year for stand-alone radios.

The nonprofit Media Access Project urges any approval to be contingent on the company relinquishing half its spectrum, which would be used as either a set-aside for educational programing, leased to another commercial firm or returned to the FCC for a federal auction. D.C. public interest group Public Knowledge likewise calls for a set-aside (5 percent of channel capacity) for educational broadcasters, but also urges a three-year freeze on the new company's combined programming.

Those groups and others endorse a proposal from U.S. Electronics, which makes car devices, that calls for an "open access" condition to force the companies to allow any hardware manufacturer to make a satellite-radio receiver.

Of all the wish lists, Clear Channel Communications' appears to be the longest. The radio giant wants half of the satellite-radio spectrum to go to a competitor, as well as a 5 percent "public interest set-aside." Clear Channel also wants a prohibition on local programming and local advertising revenues. Like iBiquity, it wants HD radio receivers embedded in satellite-radio receivers.

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