The proposed merger of the nation’s two satellite radio broadcasters has cleared a major hurdle: The Federal Communications Commission chief is recommending approval of the $3.8 billion deal.

FCC Chairman Kevin Martin made his recommendation Sunday in exchange
for a number of concessions, including turning 24 channels over to
noncommercial and minority programming. That sets the stage for a final
vote that could occur any time after Martin’s recommendation is
circulated among his fellow commissioners.

The provision on noncommercial and minority programming along with several others — including a three-year price freeze for customers.

The other four commissioners have kept their views on the deal
largely to themselves. Unlike most FCC decisions, there is no clear
indication how the vote will go.

Martin said the conditions will make the combination of the two companies good for consumers.

”As
I’ve indicated before, this is an unusual situation,” Martin said in a
statement. ”I am recommending that with the voluntary commitments they
(the companies) have offered, on balance, this transaction would be in
the public interest.”

The companies also agreed to an ”open
radio” standard, meant to create competition among manufacturers of
satellite radios, according to FCC officials who spoke on condition of
anonymity because the agreement had not yet been made public.

Martin is recommending approval despite intense opposition from the
land-based radio industry and most consumer groups, who say the deal
will create a monopoly.

I will have more info as it comes in and also when and if the merger is announced.

Stay Tuned!

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