It appears XM and Sirius have won approval for their proposed merger from the Federal Communications Commission, more than 17 months after the companies first proposed a combination of operations.
A formal decision from the commission could surface at any time. There was no official word from the FCC as of press time late Wednesday.
Nonetheless, the tumultuous process could be a penny-pincher for a combined satellite radio entity.
In order to win the endorsement of one last FCC Commissioner, Republican Deborah Taylor Tate, there's talk that the satellite radio companies could face a consent decree that resolves unspecified enforcement issues, though some reports said those items may involve satellite radio receivers exceeding mandated power limits or matters pertaining to terrestrial repeaters. The push may include a $20 million fine, stated the Wall Street Journal.
Tate would join two other Republicans, Chairman Kevin Martin and Robert McDowell, in voting for the deal. The panel's two Democrats, Michael Copps and Jonathan Adelstein, have voted against the merger proposal.
While the votes may be in, there could be other intricacies.
"Because of the technical complexity about some of the items, such as the terms of the enforcement action against the companies for interference issues related to their use of repeaters, there may be time gaps between when there is a conceptual agreement and when there is a new written document ready to be voted on and, then, eventually released," said Blair Levin of Stifel Nicolaus. "Commissioner statements can also delay final action."
SAW II
A formal decision from the commission could surface at any time. There was no official word from the FCC as of press time late Wednesday.
Nonetheless, the tumultuous process could be a penny-pincher for a combined satellite radio entity.
In order to win the endorsement of one last FCC Commissioner, Republican Deborah Taylor Tate, there's talk that the satellite radio companies could face a consent decree that resolves unspecified enforcement issues, though some reports said those items may involve satellite radio receivers exceeding mandated power limits or matters pertaining to terrestrial repeaters. The push may include a $20 million fine, stated the Wall Street Journal.
Tate would join two other Republicans, Chairman Kevin Martin and Robert McDowell, in voting for the deal. The panel's two Democrats, Michael Copps and Jonathan Adelstein, have voted against the merger proposal.
While the votes may be in, there could be other intricacies.
"Because of the technical complexity about some of the items, such as the terms of the enforcement action against the companies for interference issues related to their use of repeaters, there may be time gaps between when there is a conceptual agreement and when there is a new written document ready to be voted on and, then, eventually released," said Blair Levin of Stifel Nicolaus. "Commissioner statements can also delay final action."
SAW II