LRV reaffirmed its support for the proposed merger between SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio (Nasdaq: XMSR)

News Source: Stockwire - http://www.stockwire.com/SIRI
 
  The League of Rural Voters (LRV) today released a new analysis drawing clear   differences between the DBS market in the 2002 EchoStar/DirecTV attempt to   merge, and the expanding, competitive audio entertainment market in the   SIRIUS/XM merger. In doing so, LRV reaffirmed its support for the proposed   merger between SIRIUS Satellite Radio (Nasdaq: SIRI) and XM Satellite Radio   (Nasdaq: XMSR).
 
  "Satellite radio is often the best source for music,   news and talk in rural areas," said LRV Executive Director Niel Ritchie.   "However, it is far from the only choice. SIRIUS and XM are two small pieces in   a very broad market. Rural consumers have an array of audio entertainment   choices today and will continue to do so after the SIRIUS-XM merger."
 
  This array of consumer choices proves a key difference between the two   merger applications, the paper argues. In the EchoStar/DirecTV case, the FCC   determined that there were at most, two DBS providers. Some opponents of the   merger have tried to describe it in the same terms but according to the report,   "the Commission's review of the proposed merger of DirecTV and EchoStar in 2002   provides no guidance to the analysis applicable here." It further adds, "...this   is because the product markets at issue in the two transactions are   fundamentally different."
 
  The analysis, "SIRIUS/XM vs. EchoStar/DirecTV:   A Fundamentally Different Merger for Rural Consumers," was filed today in   support of the companies' application with the Federal Communications Commission   (FCC). It includes findings regarding: Distinct Market Definitions
 
  --   The paper cites the 2002 FCC analysis of the EchoStar/DirecTV market, which   narrowly defined each local market as the two DBS providers and the local cable   monopoly. This is in stark contrast to the "broad and competitive audio   entertainment market in which satellite radio competes," a market that today   includes terrestrial radio, Internet radio, iPODs and other MP3 players, CD   players and mobile phones.
 
  -- The FCC also found there were significant   barriers to entry in the DBS merger. This concern is moot in the satellite radio   market, given the multitude of other competitors that have already entered the   field and the anticipated release of future competitors such as HD radio and the   Apple iPhone.
 
  Different Impacts on Rural Consumers -- The narrow finding   on the DBS product market gave rise to a number of concerns, including the   reduction of viewpoint diversity and the creation of a monopoly in areas where   there was no cable. "The FCC found that DBS operators contribute to viewpoint   diversity by playing a 'gatekeeper role' that 'clearly affects' which   entertainment and news programming is available," the paper says. "The audio   entertainment market does not present the same concern, since it includes many   different providers/editors." -- Additionally, LRV's analysis concludes that the   FCC's concerns in the EchoStar/DirecTV case do not apply to satellite radio   because of its small saturation in a rapidly growing market, noting "...unlike   the DBS merger reviewed by the FCC five years ago, the proposed merger between   XM and SIRIUS comes at a time of strong and growing competition... In fact, in   contrast to the DBS context, even a merged satellite radio provider would   possess a slight market share and be constrained by the multiplicity of other   media."
 
  LRV is one of a wide range of other rural, consumer, and   Hispanic and African American organizations who have filed comments with the FCC   in support of the merger. In their comments, LRV noted that the combined entity   would offer listeners in rural communities more programming options at lower   prices than those currently available from the two companies separately.
 
  For further information on the League of Rural Voters, see   http://www.leagueofruralvoters.org. The complete analysis can be viewed at   http://www.SIRIUSmerger.com and http://www.XMmerger.com .
 
  http://www.stockwire.com/XMSR
 
  The League of   Rural Voters was founded in 1985 as a non-profit organization dedicated to   increasing the representation of rural people in the public policy making   process. The League seeks to build awareness of the economic challenges facing   rural communities while advocating for federal and state policies that focus   government resources on education, health care and local and regional economic   development.
 
  During pre-market trading shares are up 3% to $2.93 with   over 800,000 in volume.
 
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