On Monday, the Department of Justice approved the merger of XM Satellite Radio and Sirius, former rivals in the satellite radio market. But the companies still have one last obstacle to clear: Federal Communications Commission approval.

“After a careful and thorough review of the proposed transaction, the division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers,” the DOJ said.

Despite a green light from the DOJ, observers are skeptical that the FCC will allow Sirius to complete its $4.59 billion purchase of XM. The companies claim widespread support for the deal, but others have monopolistic concerns about the merger. The deal was first announced in February 2007.

Pushing the Satellite Agenda

Sirius and XM, both money-losing ventures, are touting lower prices and increased programming choices that they say the merger will mean for consumers. The companies have urged the FCC to approve the merger without delay.

The companies unveiled an array of new programming options, including two first-of-their-kind, la carte packages where consumers can individually select the channels they wish to receive.

A public-opinion survey found that more than 70 percent of respondents thought the new packages would be a good deal for consumers. The companies currently offer 100 channels and charge about $13 a month.

Support for the Merger

Members of Congress from both political parties have urged approval. Two former FCC chairmen and former FCC staff members have voiced support. Leading car manufacturers have all cited consumer benefits inherent in the merger.

The nation’s leading voices for minority audiences, including the National Association for the Advancement of Colored People and the League of United Latin American Citizens, have asked the FCC for approval. And religious leaders and family values advocates have…

Tags: Communications, consumers