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Former FCC Head Fowler Calls For XM-Sirius Merger OK
In an opinion piece in the New York Sun, whose parent company Hearst Corporation owns a stake in XM Satellite Radio, former FCC Chairman Mark Fowler has come out in support of the proposed merger of XM and Sirius Satellite Radio. Fowler, who headed the FCC during the Reagan administration, says the broadcast industry's opposition to the merger is based on fear of competition.
He writes, "In spite of the fact that satellite radio constitutes only 3.4% of radio listening today, traditional over-the-air radio operators have understood the potential threat and have had no choice but to compete and have been dragged, albeit kicking and screaming, into the digital age."
He goes on, "Thus, the broadcast industry recently introduced and is pushing its own 'HD Radio' initiative to allow radio stations across the country to offer multiple new, high-quality digital channels." HD Radio stations have been on the air since early 2003.
Fowler says consumers have benefited from the new competition in audio entertainment that's come from iPods, Internet radio, and mobile phones and adds, "If the two satellite radio companies, each only several years old, need to combine to be more effective competitors in an audio entertainment marketplace teeming with technological change and innovation, the government should not stand in the way."
In a joint statement, XM Chairman Gary Parsons and Sirius CEO Mel Karmazin said they are "extremely pleased" by Fowler's support. They said, "As the longest-serving Chairman of the FCC in our nation's history, Mr. Fowler has had a lasting impact on global communications. His backing of this merger further illustrates the benefits a combined Sirius and XM will bring to audio entertainment consumers."
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