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Who Will Benefit Most from the Proposed SIRIUS - XM Satellite Radio Merger

By Corey Deitz, About.com Guide

Those in favor of the proposed merger offer these reasons to proceed:

  1. Subscribers will have the ability to pick and choose the channels and content they want on a more "a la carte" basis
  2. It will enable more accelerated technological innovation
  3. It will provide better financial performance for investors
  4. Creating one strong content provider will enable Satellite Radio to be more competitive against terrestrial radio and more traditional competition

Those not in favor of the proposed merger offer these reasons:

  1. The competitive duopoly created by the F.C.C. in 1997 will be at risk
  2. Subscribers will lose their choice and be at the mercy of a monopoly provider
  3. "...less service, less affordability, less diversity, and less choice in content and hardware," according to a report released by the Carmel Group in Apri, 2007.
  4. Hardware compatibility issues will be expensive and time-consuming to resolve
  5. Consolidation between both providers will result in job losses

Where It Stands

F.C.C. Chairman, Kevin Martin, told reporters in late May of 2008 that the agency could issue a decision by the end of the year's second quarter.

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