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 Republican Federal Communications Commission Commissioner Deborah Tate has an unusual ally in her quest for strict enforcement action before a major deal.
Tate has been pushing the agency's enforcement bureau to fine both XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., two companies that are seeking regulatory approval from the FCC for a $13 billion deal. At least that's what people close to the Republican commissioner are saying. Tate declined to comment to The Deal about the XM-Sirius deal on Monday, but according to regulatory filings has met with attorneys for both companies and enforcement bureau staffers to discuss the issue. Now Democratic commissioner Jonathan Adelstein has expressed his own concerns about XM-Sirius violations, and he said he wants the FCC to complete its enforcement proceeding before it approves the merger. "We always do major enforcement issues first in major transactions before us, and I appreciate [Commissioner] Tate's focus on that," Adelstein told reporters after four of the agency's five commissioners spoke at the Minority Media and Telecommunications Council's annual Washington conference on Monday. "There are major infractions of FCC rules on a wide-spread scale." Adelstein declined to comment on whether he wanted the FCC to fine both satellite companies for their alleged violations. But Adelstein added that he wants enforcement actions related to wireless devices XM-Sirius used to transmit audio signals from satellite radio devices to in-dash car radios that are noncompliant with FCC limits. He also worries about hundreds of XM-Sirius antennas that either are not in place in approved locations or emitting signals that were too strong. Tate, who met with Sirius representatives and the enforcement bureau, is considered to have similar enforcement concerns. Adelstein met with Sirius CEO Mel Karmazin on Thursday to discuss his concerns, including enforcement issues, according to regulatory filings. On Thursday, Tate also discussed enforcement issues with attorneys for XM and Sirius. At the conference, Adelstein also reiterated his push to have an independent committee to monitor whether the combined company complies with merger conditions imposed by the commission. Adelstein said he hoped the monitor committee would reflect the type of independent review trustees the Federal Trade Commission employ to oversee whether that agency's merger conditions are complied with. Presumably, the independent committee would be paid for by XM-Sirius funds but be approved by FCC officials. - Ron Orol Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World. Categories Deal Video
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