FCC Tradition of Dirty Dealings Continues; Comcast Sues
The FCC is likely one of the most transparently corrupt government entities in this country. What’s worse, they can be bought cheap. Preferential treatment and approval fast-tracking as a result of underhanded dealings continued financial support is just another day at the office for the FCC. Likewise, companies posing a potential threat to FCC supporters are consistently forced to undergo needlessly drawn out proceedings before progress is likely ultimately stunted. Supporters on the other hand, sit back and relax as their dealings skate on through to approval. To think that mergers between Exxon and Mobil or Chevron and Texaco took less examination then the still-in-limbo XM-Sirius merger is simply atrocious. Despite the fact that Sirius and XM combine to make up less than 5% of the radio market, they still pose a big enough threat to the National Association of Broadcasters (NAB) to warrant string pulling. As the FCC puppets continue to dance, people like Jim Cramer are finally getting fed up enough to point some fingers. The outspoken analyst recently outed several Congressmen in opposition of the satellite radio merger for having taken radio lobby "contributions" in past cycles. Still, the cycle continues.
Comcast, another company apparently not lining enough pockets showing enough support for the right Congressmen, has delivered on its promise to sue the FCC. The issue at hand is the FCC’s recent ruling that no provider of pay television services can own more than 30% of the market. Imagine that; a law that prevents companies from being successful wink wink. Comcast suit aside, we wonder of course whether the recent entrance of various FCC-pet telcos into the TV game had any influence on this decision. We further wonder what would happen if one of said telcos began to approach the 30% mark. Comcast’s David Cohen sums it up well:
"The FCC action in this case is perplexing from the same commission that approved the largest telecommunications deal in history with the AT&T merger as well as two other Bell company mega-mergers in the past three years. As these FCC decisions have strengthened the hands of our Bell competitors, it is unthinkable that the government would constrain the ability of cable companies like Comcast to compete with these colossal companies."
To put it bluntly, the FCC has become a shining example of a gross misuse of government. It is a drain on American tax dollars and a parody of our system. Government deliberation-wise, it was easier for America to invade Iraq than it is for XM to merge with Sirius…
Corruption at its worse. Can there be any stronger reason for term limits in Congress.
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the rpoblem is mose of the demacrats in congress an som reps have abndoned the concept of federalism. this is a clear examble why a big nanay state.gov dosn’t work.
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couldn’t agree more.
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Good to see sombody saying this.
People that work for the FCC have been given immunity and they are talking because they are not happy with what has been going on.
Holding Sirius and XM Hostage is just one of the things the approval of HD Radio a poor quality system they have stuck the country with that puts noise on adjacent stations is another.
All hell is going to break out about the FCC this i know.
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OK - I might be naive but can someone explain to me how taking the only two satellite radio services and letting them merge into one is good for competition? Wouldn’t that be a monopoly and thus illegal?
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Dishonest, Inept or both?
I think both.
WTF takes 14 months?
Idiots.
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“OK - I might be naive but can someone explain to me how taking the only two satellite radio services and letting them merge into one is good for competition? Wouldn’t that be a monopoly and thus illegal?”
um… allow me to toss this one back to you… Why only One NASA? Only one IRS? only One DOJ? Wouldn’t we all be better served by NOT concentrating like assets into ONE Focused Enterprise vs. Duplication of Effort and Cost??
How do we control Spending at NASA? The performance of Revenue Collection at IRS? The requisite Fairness of DOJ (or, FCC for that matter)… without competition?
This is the Service Industry, no widgets are being produced–and, who will listen to IMPORTED Content on Sat Radio in U.S.??
P.S. Competition by UPS, FEDex and USPS has not LOWERED Price of 1st Class Stamp, btw… Last time I checked, a Stamp is going to cost even more in the next Month… so much for Competition as a solution to lower pricing.
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Ron Paul for President!
@ Larry
The XM/Sirius Merger is NOT a monopoly. You don’t NEED satallite radio.
If XM/Sirius charges more money than you want to pay you dont have to pay it, you simply listen to normal (free) radio.
There is no location in the U.S.A. where satellite radio is your only option.
Just as stated above 5% of the radio market share belongs to XM/Sirius the other 95% is free.
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Larry must work for the NAB!
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This article reflects my same frustration but losses all credibility bc of how inaccurate it is. The FCC has nothing to do with approving Oil Company mergers, its the DOJ. Also very corrupt, but a completely different agency.And then the comments comparing the merger to Nasa and the IRS which are agencies of a government, not a company and I have no idea the analogy trying to be used there. I do not believe sdars is a monopoly simply bc when I drive in my car, I hit the ipod button, the XM button, the FM button, or the AM button. The only difference I see is in the method of delivery which does not determine markets in other places. I get water to my house from pipes, from bottles in the fridge, and from companies who deliver big 5 gallon tubs of it to my door. The water is all a little different (ones spring, ones filtered, ones tap) but if I stoped getting access to one, i would use another more which is buy definition a relevant market. SAme as sat radio. In fact XM and SIRI in most of the new subs going forward CAN NOT compete with each other as well as regular radio can bc they come in different cars. When you get a new chevy your choice is XM FM or AM..there is no choice for sirius listening…This is a clear cut case, but i believe precedence and concessions are complex and some excuse for the delay, but over a year is just absurd..the only good news is that minus unheard of corruption, they cant deny the deal now..if they bled these two companies like this, spent weeks meeting with all the special interest people who want a piece of spectrum, and then just say “nah were not going to let this go through” that would be beyond criminal..
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Galvatron, your posts are always amusing in that they’re basically illegible and rarely have basis in reality. The fact that you think there’s actually a real difference between democrats and republicans in this day and age tells me that you swallow whatever the talking heads feed you whole. They’re all morons, and they’re all responsible for the khitbash that we’re currently receiving at the hands of the government.
All that nonsense said, I’m really torn. On the one hand, the FCC is corrupt. The rest of the government should be ashamed of them. On the other hand, I don’t know how I feel about Comcast bringing the suit, since they’re also scum. I mean… I don’t even know who to be in favor of.
/in favor of Jesus
//can’t go wrong!
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Stick with BGR & Cramer!
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