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Specter: XM-Sirius Answer Should Be Near

Analyst: answer should be "yes"

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For the sake of avoiding repetition, the words "may" and "might" aren’t going to appear in every sentence of this article.  Go ahead and mentally insert them, though, because this concerns the resolution of the long-uncertain XM-Sirius merger.

XM-Sirius Merger Decision Might Be Coming Soon
 Specter Sees Resolution Happening Soon

During an interview on the Howard Stern Show, Senator Arlen Specter "said . . . a decision should reached by the end of the month," according to an Orbitcast article, which then added, "to his knowledge."

It’s not the strongest possible confirmation – Pat Leahy is actually the Senate Judiciary Committee’s chairman, and Specter’s statement puts uncomfortably narrow (and yet nonspecific) time restrictions on the matter.  But Specter is hardly out of the loop, so we may see something happen soon.

Also, in terms of what that something will be, it seems at least one important onlooker believes the merger will be approved.  As reported by Eric Savitz, a Stifel Nicolaus analyst stated, "The FCC rumblings bolster our sense that the DOJ will likely clear the deal followed by FCC approval with conditions."

Customers and investors surely remain anxious to see what happens; the stocks representing both XM and Sirius have risen quickly in the past couple of days.

Specter: XM-Sirius Answer Should Be Near
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  • Serious Sirius Listener

    This merger would have taken place a lot sooner if certain parties were not out to bankrupt these companies. First off there is Cheap Channel aka Clear Channel. Then there is the NAB and last but not least there is Howard Stern. A few years ago CC dumped the Howard Stern Show on 6 of their stations. No sooner did this happen those stations who had a good ratings run and top advertising rates no long had that. CC owns over 1200 radio stations in the US. Do you think they want to lose their market share to satellite? I don’t think so. They claim that Satellite Radio is their direct competition. If so what about Cd’s DVDs and MP3 Players people have in the home or cars. I can take an 800 MB recordable CD and burn over 12 hours of my music of my own choice on it commercial free. Can Terrestrial radio offer me that? CC also holds Stock in XM. Funny huh? The NAB is just a mouthpiece for radio station owners who subscribe to them. What has terrestrial radio brought to the table over the last 40 or so years? Lets see now. We have had FM Stereo for a long time. Back in the early 70′s there was a move to go Quadraphonic. That dropped like a hot rock. In  the late 80′s there was a move to go AM Stereo which also sunk. I found it funny at the time that one of the few AM stations broadcasting in AM Stereo was WINS 1010 in NYC. WINS is a 24 hour news station. Wow news in Stereo. Lets take a bigger leap in to the new millennium. Wow now we have HD. What does that mean to you and me? It means in order to listen to a station broadcasting in HD you would need to replace your existing radio with a new one capable of receiving an HD signal. Hd is just a side signal utilizing the same frequency of the main carrier otherwise know as sideband.  HD radio station are claiming that it is a better quality then Satellite and it is free. It may be free now but in another year there are stations that will require a subscription because they can not afford to keep the programming commercial free. Also just like the regular FM signal when it fades out because you are out of range so does the HD signal. Where as Satellite although not perfect  does not do that. You can get in your car and drive from the east coast to the west coast and you can listen to the same channel all the way. Can FM radio do or say that? Like I said Satellite is not perfect. There arethings that can block the signal such as driving in a heavily wooded area, in tunnles and inside buildings and ovrpasses. For the most part the signal is clearer and cleaner and because of the fact the signal is beamed in from space there is no need for super sized 50KW transmitters.

    Then last but not least there is Howard Stern. As with CC losing money after dropping his show Viacom/CBS Radio also felt the loss big time after Howard went to Sirius. Loss of money , ratings and advertisers. Most of the companies that advertised on Howards show had to wait a long time before they could get commercial spots on his show. When he left most if now all those advertisers dropped their spots. With the replacements CBS radio tried to put in to fill his time slot didn’t do well and they were not able to charge the high rates that they were able to do with Howard.

    When howard went to Sirius he took them from just under 1 million subscribers to 7.6 million as of Oct 30 ,2007. Is Howard a threat to terestial radio? He could be But he the real threat or is it that Satellite radio can offer a wider variety from one sorce then AM or FM radio can.

     

    The politicians in DC mostly have no idea of what Satellite radio even is.