• by Erik Sass  @eriksass1, June 3, 2008

What do Women Involved in Farm Economics, the Oklahoma Black Historical Research Society Project and the League of United Latin American Citizens have in common? Their passionate support for the merger between Sirius Satellite and XM Satellite Radio.

These groups' vociferous lobbying for the merger over the last year seems odd--and out of all proportion to the marginal benefits their constituents would reap from the deal. Yes, Virginia, they're actually lobbying at the behest of the satellite radio broadcasters themselves.

This kind of transparent proxy attack has been used by both sides in the bitter conflict between the satcasters and terrestrial broadcasters, represented by the National Association of Broadcasters. And there's likely to be a surge of this activity as the combatants ratchet up the pressure in the final weeks before a decision is rendered by the Federal Communications Commission--the ultimate audience for the lobbying, along with their bosses in Congress.

The groups listed above are only a few of the lobbyists and special-interest groups that have come out for or against the merger. The satcasters have won the support of a variety of rural and ethnic activist groups, including the League of Rural Voters, the Federation of Southern Cooperatives, the National Latino Farmers and Ranchers Trade Association, the Intertribal Agricultural Council, Women Impacting Public Policy, the National Black Chamber of Commerce, the Hispanic Federation, The Latino Coalition, and the New York State Federation of Hispanic Chambers of Commerce.

As noted, the arguments presented by some of these groups in favor of the merger can be fairly tangential: For example, a letter from five of the rural lobbyists to the FCC asserted that it "would allow a combined company to expand upon its existing services with increased efficiencies," thereby making "satellite radio Siriusly-Speaking May-07 a more viable option for rural consumers... even in the most remote areas."

Opponents of the merger took things a step further by simply inventing a new lobbying group: the Consumer Coalition for Competition in Satellite Radio (C3SR). Ostensibly a "grassroots" consumer group organized by Sirius and XM subscribers to stop the merger, the group has close ties to the NAB, coordinated by an independent PR firm. The group is said to consist of law students and college students, but also includes unspecified "volunteers."

None of this necessarily implies a direct payment from the companies or lobbyists to the groups, as they can offer them a variety of indirect incentives. For example, the satcasters could make charitable contributions to related community organizations that will strengthen the lobbyists' position at home. For law students, working with the NAB gives them an in to the Capitol Hill lobbying scene.

Even former members or employees of the FCC have gotten into the act. Sirius commissioned a study from Thomas Hazlett, formerly the FCC's chief economist, which said the merger would "enhance consumer welfare." The satcasters also got support from Mark Fowler, the FCC chairman during part of the Reagan Administration, who wrote an opinion column in favor of the merger.