It appears that XM and Sirius radio could be heading the way of most MVNOs.... Bradley Meacham has a look at the financial situation facing both companies and the FCC's role in their future survival.

The question that I have is:

How significant a role should the FCC should have in the potential merger of the two companies?

If you define the XM and Sirius market as just satellite radio, then yes. The FCC should have a large role to play. If you define the market that XM and Sirius play in as the overall "remote distance" audio provider market, then I would say that the FCC should take a more hands off role. HD radio is providing a strong alternative to those who don't need Howard Stern, but want better sounds quality. Internet radio continues to grow as another alternative.

Also, this is a similar business model decision as the MVNOs like ESPN Mobile. Is the premium content worth the hardware AND the monthly subscription? For a publicly traded/financed company, it may not be possible. But, for a private firm or a division of a larger provider, satellite radio might make sense.

Can you say DirecTV Radio?

Besides, as a resident of Colorado where there's nothing like satellite reception on the north side of a large rock (read mountain, etc); I have never quite seen the appeal of paying $20+ per month to listen to an intermittent signal when there's a perfect good free one available... :)

NOTE - There are times when I drive across Kansas and Nebraska when I would dearly pay for a little Howard Stern... :)

Technorati Tags: Telecommunications, Telecom, Satellite Radio, Bradley Meacham, XM, Sirius, FCC, Business Model