Will Satellite Radio Be A Monopoly

The ever long legal struggle to unite XM Satellite and Sirius Satellite radio companies continues on at a tortoises pace.  Although there appears to be some light at the end of tunnel. The five members of the Federal Communications Commission appear to be close to making a final decision as one member recently casted his vote against the deal making the vote a deadlock at this point with two votes for and two votes against.

So the battle to make a Satellite radio monopoly company rages on with a possible end date in site as the FCC is scheduled to hold it’s next official meeting on August 1.  The question though is this, does the deal make sense or does this scream of monopoly merger to you? As far as I know these are the only two satellite radio companies in the game what happened to open market competition. Both of these companies have been struggling for the last few years to keep their investors happy. Will satellite radio really be a viable alternative to free radio.  All indications would point to yes as the odds are on the FCC finding a way to make the deal happen. Plus recent reports from XM radio indicate that their restructuring is starting to payoff as they recently reported a loss but a much smaller loss than in previous quarters. They are also closing in on ten million subscribers which is certainly nothing to sneeze at. You add that strength in to the mix with Sirius and you have the making of very powerful radio entertainment network.

So what is your take on the whole merger of do the radio companies have a legitimate beef to call a foul on this deal? Is it a monopoly will this hurt the radio industry? Or does the fact that near twenty million subscribers between the two companies simply indicate a booming industry that is getting ready to elevate to the next level. Please leave your shots with a few comments or better yet submit your own blogshot and voice your opinions……..

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