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ECT News Community   »   E-Commerce Times Talkback   »   Re: Sirius-XM Merger Opponents Gird for Last Stand

Re: Sirius-XM Merger Opponents Gird for Last Stand
Posted by: Brad King 2008-03-25 13:11:02
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The U.S. Department of Justice has cleared the way for competing satellite radio services to merge into one company amid fears that the combined service would create an unstoppable monopoly. Sirius Satellite Radio and XM Satellite Radio first announced intentions to merge in February of 2007 -- 10 years after the inception of satellite radio -- in order to reduce costs for production, customer acquisition and distribution. The two companies have a combined reach of 17 million customers and revenues that continue to climb.

Re: Sirius-XM Merger Opponents Gird for Last Stand
Posted by: SteveFrunkis 2008-03-25 13:21:45 In reply to: Brad King
Although Murdoch could theoretically be a future competitor, it's quite a leap to assume that he could just use the satellites he already has. What is the technical basis for this assumption? What are the specs on the free transponders he has available? Besides, one of the secrets of satellite radio is that both XM and Sirius maintain a vast network of terrestrial repeaters to fill in the gaps in satellite coverage. This could cost a pretty penny. It's just not as simple as "having some satellites up there".
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