Clear Channel Protests XM/Sirius Merger

Representatives from Clear Channel Radio have met with three of five commissioners on the Federal Communications Commission to argue against the proposed merger of Sirius and XM Satellite Radio, according to FCC records. This is at least the second move by the country's largest radio owner against the merger, which is fiercely opposed by terrestrial radio broadcasters.

At the meetings with both Democratic commissioners, Jonathan Adelstein and Michael Copps, as well as Republican commissioner Robert McDowell, Clear Channel's reps argued that the deal is anti-competitive--a merger to monopoly, against the public interest, that would threaten the existence of terrestrial radio.

Other industry groups, led by the National Association of Broadcasters have emphasized the same points in an unrelenting PR and lobbying campaign on Capitol Hill.

The choice to speak to the FCC's Democratic commissioners is telling, as both are known for opposing media consolidation, in line with Democratic members of Congress. However media consolidation has also drawn the attention of Republican lawmakers; last year, for example, lead GOP Senator Trent Lott co-authored a bill with Democratic Senator Byron Dorgan that would require the FCC to deliberate longer over media consolidation rule-making.

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Senators from both parties chastised FCC chairman Kevin Martin for rushing through rule changes allowing more consolidation.

The meetings with the FCC mark at least the second sally by Clear Channel against the satellite merger. The radio giant has a leadership role in the HD Digital Radio Alliance, which has pursued a slightly different strategy in opposing the merger. The Alliance, along with HD iBiquity, the company that controls digital radio technology, has sent letters to the FCC demanding that satellite radio sets be required to receive terrestrial HD broadcasts as a condition for the merger going forward. They also demanded that both satellite companies terminate their deals with automakers as a condition if the merger is allowed.

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