FCC chairman OK's XM/Sirius merger

The proposed merger of XM Radio and Sirius just took another baby step toward reality, with FCC Chairman Kevin Martin giving the deal his stamp of approval—with a few conditions.

Among them, according to the AP (via the New York Times): a three-year price freeze for subscribers, an "open radio" standard allowing any manufacturer to make satellite radio receivers, and "a la carte" channel offerings.

The companies would also have to set aside 24 channels to non-commercial educational and minority programming, the AP reports.

Conditions such as a price freeze and an "open radio" standard—which could lead to cheaper satellite radio receivers—are, of course, key concesssions for current XM and Sirius subscribers, who might (quite reasonably) fear that their rates could spike if the merger goes through.

But even with Kevin Martin's blessing, neither the XM/Sirius merger—nor Martin's proposed conditions, for that matter—are done deals yet.

The five-member FCC still must vote on the proposal, and as the AP notes, the other commissioners (two Democrats and two Republicans) are keeping their cards close to their chests. Both the overall merger and the proposed conditions will be up for debate.

Check out my post back in March (when the Justice Department approved the proposed merger) for how subscription plans might work if the XM/Sirius merger goes ahead.

Also, keep in mind that while existing satellite radios will still work when (and if) XM and Sirius join forcers, you'll probably have to buy a new radio if you want to pick and choose your channels, "a la carte"-style.

Related:
F.C.C. Chief Backs XM-Sirius Deal [AP]