XM and Sirius to Merge

It took a long time but the XM Sirius Satellite merger proposal now has backing from the FCC. The two will have to divest themselves of some stations and agree to keep a lid on prices for a few years in order to get this transaction done. Both firms are winners here and in the short term, consumers win as well since they will have access to greater content as a result of forthcoming radios which work with satellites from both companies.

In the long-term, consumers will be losers as prices will increase more quickly than they would with two satellit competitors. Content owners and radio personalities are definitely losers as well since there will be less competition to purchase their content.

As I have mentioned before, the biggest competition to satellite radio will become Internet radio streamed over wireless broadband networks. AT&T has already started dabbling in this area and it remains to be seen how successful this initiative is for the telecom giant and if other providers jump in the game.

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