Former FCC Commissioner Harold Furchtgott-Roth, an economist, released a study of the proposed satellite merger; he concludes consumers would benefit from the union due to reined-in prices and more programming choice.
The paper was prepared for the satellite companies and filed with the FCC. “An Economic Review of the Proposed Merger of XM and Sirius” explores the economic considerations that government agencies should take into account when reviewing the merger.
“After studying various economic factors and potential changes in competing communications services, I conclude that American consumers have a wide and rapidly expanding range of choices for communications services that compete with XM and Sirius,” stated Furchtgott-Roth.
“Additionally, these competitive choices discipline the prices that XM and Sirius charge subscribers today and will continue to do so regardless of whether the firms merge. I believe that government agencies should afford these companies the flexibility to respond to rapidly changing market conditions.”
Furchtgott-Roth served at the commission from 1997 through 2001 and is a paid telecommunications consultant; he founded Furchtgott-Roth Economic Enterprises in 2003.