XM-Sirius Success Hinges on Concessions

Among those lobbying the FCC for certain impositions, private-equity firm Georgetown Partners has offered support for the XM-Sirius merger on the condition the FCC hand over to them 20% of the combined company's spectrum. That would mean the creation of a new competitor in the satellite radio market using spectrum that has been developed by both XM and Sirius.

While such a move would ease concerns that the merger stifles competition, Sirius and XM said the inclusion of that condition would be a manipulation of the regulatory process for private gain. Sirius and XM have reason to push Georgetown Partners away from their corner. If the merged company were forced to give up or lease 20% of its spectrum, it would mean XM-Sirius wouldn't be able to offer as many channels to consumers as many believe a joined entity would.

Also looking to get in on the action is American Public Media, a producer of public radio content. CEO William Kling has asked the FCC to set aside 20% of the combined parties' spectrum for noncommercial educational use. "Making a commitment to [noncommercial educational] programming is even more important when a large portion of radio spectrum is controlled by a single broadcaster," Kling wrote.

The National Hispanic Media Coalition is another advocacy group looking for a chunk of XM-Sirius spectrum if the deal is approved. The NHMC, in a letter to the FCC, asked the commission to set aside 15% of the spectrum for minority and women-owned programmers who are unaffiliated in all respects with XM-Sirius. Additionally, the NHMC asked the FCC to force a combined XM-Sirius make the technical specifications of its devices and network open and available to allow device manufacturers to develop, and consumers to use, any device they choose without interference.