December 26, 2007

By By Susan Visakowitz, N.Y.

Representative Paul Broun (R-Ga.), member of the House Homeland Security Committee and the House Science & Technology Committee, sent a letter on Friday (Dec. 21) to U.S. Attorney General Michael Mukasey, FTC chairman Deborah Platt Majoras and FCC chairman Kevin Martin, voicing concern over the proposed XM and Sirius merger.

He wrote that the "elimination of competition" that would result from the merger "would hurt my constituents who are consumers of satellite radio" and went on to praise the FCC for its initial decision to license more than one satellite radio operator.

Broun said the FCC decision "resulted in robust competition and expanded choice for the American consumer, all of which would be undermined by a merger of Sirius and XM." He added that "a united Sirius/XM would be free to raise consumer prices, unchecked in the marketplace."

Broun pointed out that the FCC "has never before allowed the only two competitors in a given market to combine. Present circumstances do not warrant the FCC's complete reversal of its conclusions in the satellite radio licensing decision, or the consumer benefits and protections that have resulted from that decision."

Subscribe to Billboard magazine today!