Clear Channel Voices “Skewed” Opposition to XM/Sirius Merger

In an admittedly “skewed” letter to the Federal Communications Commission, a high-profile Clear Channel Radio executive voiced opposition to the proposed $13 billion merger between Sirius and XM. Last week, the FCC’s Deborah Tate received talking points against the proposed merger in an attempt to influence the commissioner with the company’s position on the proposal.

According to PublicIntegrity.org, Clear Channel Vice President Thomas English wrote three possible responses aimed at helping the commissioner resolve previous statements in favor of relaxing media ownership limits. In the letter, English asks Tate how she “reconcile(s) your past recognition of all the entertainment options like iPods, internet radio, satellite radio, etc. available to consumers as one of the reasons for relaxing local radio ownership rules with your present concerns with a merger of XM and Sirius being a monopoly?”

Answering his own questions, the Clear Channel VP admits that the responses provided “were composed by our Government Affairs folks so they might be a little skewed toward our specific goals.”

In a strange tactic, English wrote three answers in the first person beginning with: “My position opposing the XM/Sirius merger and supporting a significant relaxation of local radio ownership rules is completely consistent with my primary guiding principle: avoid government action that seriously distorts the marketplace.”

English went on to write, “My main concern is how can free radio survive when a combined XM/Sirius would control more spectrum in every market in the country than the entire AM/FM band combined?” The exec also wrote, “I consistently oppose a regulatory system that would disadvantage free, terrestrial broadcasting.”

One major issue with English’s letter is that by law, anyone who wishes to communicate with the FCC in a formal proceeding must file an ex parte presentation - a procedure that documents outside parties’ communication with the agency. A spokesperson from Tate’s office said it is unknown why Clear Channel submitted talking points to the commissioner and disregard standard procedure.

The Senate Commerce Committee will be holding another hearing on the proposed XM/Sirius merger today at 10 a.m. ET.









Leave a Reply