Thomas Hazlett's case for the XM/Sirius merger

THOMAS HAZLETT'S CASE FOR THE XM/SIRIUS MERGER
[SOURCE: Lasar's Letter on the FCC, AUTHOR: Matthew Lasar]
Former Federal Communications Commission Chief Economist Thomas W. Hazlett's advocacy of the proposed XM/Sirius satellite merger centers around a single irony: nothing makes the case for the application better than terrestrial broadcaster opposition to the union. "These interests emphatically claim that they oppose the merger because it will lead to a monopoly that will harm consumers," Hazlett writes in a brief filed today with the FCC. "This fierce opposition is powerful evidence in itself that AM/FM radio—'free radio'—competes with satellite radio, and reveals the true concern of terrestrial stations: that the merger will create a stronger rival better able to meet the needs of consumers." Hazlett's 51 page statement, commissioned by XM and Sirius, effectively turns all economic arguments against the merger on their head. But filing also ignores key legal questions about the proposal, implicitly suggesting that they represent a substantial hurdle that XM and Sirius may not overcome.
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