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Wednesday, May 23, 2007

Senator Kohl Opposes Merger - Old News Resurfaces With Letter

May 23, 2007
Tyler Savery

According to a published Reuters report by Peter Kaplan, the chairman of the Senate's AntiTrust subcommittee has expressed that the DOJ and FCC oppose the merger on grounds that it would "cause substantial harm to competition and consumers" and that "Such a result should be be unacceptable under antitrust law and as a matter of communication policy"

Kohl letter was forwarded to FCC Chairman Kevin Martin and the Justice Department's antitrust chief, Thomas Barnett.

Those that follow the sector may remember Senator Kohls stances in the hearings held before the subcommittee in March of this year. Kohl did not seem open to the idea of a merger at that time, so this letter should come as little surprise.

In the scheme of things, Representatives and Senators actually have little power with regards to the decision on the merger. However, their comments can carry weight with regulators that do have power in the decision process. This is why it is important to let your voice be heard regarding the merger. Not only to the FCC, but to your Representatives, Senators, and committees that have had hearings on the subject.

Position - Long Sirius, Long XM

5/23/2007 03:00:00 PM


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4 Comments:

  • I'm starting a campaign called "Shut Off that *%#@! Radio!".

    Contact NAB and your radio advertisers to let them know that due to NAB's obviously biased position on the merger, we are going to "Shut Off that %#@*! Radio!"

    and I've also quit shopping at Kohl's !!

    By Anonymous Anonymous, at May 23, 2007 3:41 PM  


  • I'm starting a campaign called "Shut Off that *%#@! Radio!".

    Contact NAB and your radio advertisers to let them know that due to NAB's obviously biased position on the merger, we are going to "Shut Off that %#@*! Radio!"

    Plus no more shopping at Kohl's !!

    By Anonymous Anonymous, at May 23, 2007 3:53 PM  


  • Mr.Senator, are you and David Rehr friends, associates, or affiliated with ANY business deals whatsoever?
    I can't believe the position you are taking.
    I am a SIRIUS subscriber as well as an XM subsciber an I can't wait until the merger passes.
    There is competetion from regular broadcast radio, and so many other forms of technologies.
    I want to see SIRIUS and XM homogenize.
    It will benefit the consumer.
    It will benefit the subscibers.
    It will benefit all those that want CHOICE.....AND I WANT CHOICE!!!!!!

    By Anonymous Anonymous, at May 23, 2007 4:24 PM  


  • Dear DOJ & FCC

    I urge you to please approve the merger between XM and Sirius Satellite Radio.

    As I’m sure you understand, every business, must pass along its costs of product or service to the consumer. Otherwise, that business will be unable to sustain itself. Under the current scheme of two satellite radio companies, the costs of providing service to the customer is unnaturally and wastefully doubled; and these costs are very, very expensive.

    By allowing XM and Sirius to merge, you will be allowing the combined company to significantly reduce its cost of production, and thereby reduce the pass through cost to the consumer.

    Some examples of the costs efficiencies that can provided by a merger are:

    1) Satellites - Currently there are eight (8) total satellites being deployed. Each satellite costs hundreds of millions of dollars.

    Under the combined company, four, (4) is all that is really needed.

    2) Studios - There are currently three, (3) studios being used.

    Under the new combined company, one, (1) is all that is really needed.

    3) Content Providers - Currently, XM and Sirius are artificially bidding up the cost of content. While this might be great for the content providers, (Like Howard Stern) the consumers are the ones stuck with paying for the higher contract rates.

    4) Greater Advertising Revenue - The bigger combined company will be much more attractive to advertisers, allowing the resulting increased ad revenue to offset the costs of production.

    In Summary, allowing the merger of XM and Sirius will greatly benefit the consumer in allowing them to receive service at a much lower and efficient cost.

    Please allow the merger.

    By Anonymous MG, Carlsbad, CA, at May 23, 2007 4:41 PM  


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