Satellite Radio Monopoly Proposed Posted Tue Feb 20, 2007, 9:07 AM ET

What's interesting about the proposed merger of the XM and Sirius satellite radio operations is that their licenses, issued by the Federal Communications Commission, specifically prohibit one company from owning both networks. A press release lists benefits of the monopoly as more program choices, advanced tech innovation, enhanced hardware offerings for OEM and retail partners, better financial performance, and more competitiveness. Some of these claims are more credible than others. Will combining the two result in more choices for listeners—or will overlapping programs eventually be cut? How exactly will the removal of competition spur technology? And the big question, of course: Will the FCC provide conclusive proof of incompetence and/or corruption by saying yes to a monopoly and destroying competition in satellite radio?

Postscript: Even before securing its monopoly status, the new company is already talking about price increases, according to a conference call for investors. See Gizmodo's definitive coverage.

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