WI LLIAM 6 MULLEN
Direct Dial: [email protected]
April 3,2008
BY ELECTRONIC TRANSMISSION
Ms. Marlene H. Dortch, SecretaryFederal Communications CommissionOffice of the Secretary445 12th Street, S. W.Washington, DC 20554
Re: Notice of Oral Ex Parte Presentations in Connection With theConsolidated Application for Authority to Transfer Control in ConnectionWith the Sirius/XM Merger, as Amended (MB Docket No. 07-57)
Dear Ms. Dortch:
On April 2, 2008, the undersigned and Benjamin Arden of Williams Mullen andMessrs. 1. Gregory Sidak and Hal Singer of Criterion Economics, L.L.c., representing theConsumer Coalition for Competition in Satellite Radio ("C3SR"), met with the following staffmembers of the Media Bureau and Office of General Counsel: Roy Stewart, Dan Bring, MarciaGlauberman, Jim Bird, Royce Sherlock, Rebekah Goodheart, Dana Scherer, Elvis Stumbergs,David Shiman, Judith Herman, Rosemary Harold, Joel Rabinovitz, and William Freedman. Thepurpose of the meeting was to discuss C3SR's concerns with the proposed merger ofXMSatellite Radio Holdings Inc. ("XM") and Sirius Satellite Radio Inc. ("Sirius").
The recent decision by the Department of Justice ("DOJ"), which has been thesubject of criticism by many commentators, was discussed. The DOJ decision failed to giveproper weight to the substantial evidence of direct competition between Sirius and XM, assummarized in the attached redacted presentation, "Analysis of Proposed XM-Sirius Merger,"produced by Messrs. Sidak and Singer.
C3SR challenged the DOl's assumption that there has been limited switching bysubscribers between XM and Sirius because they do not compete for existing customers. DOJassumes that this lack of switching is caused by the high cost of switching (i.e., the lack of aninteroperable radio). To the contrary, consumers have not switched providers because there hasnot been a triggering stimulus; i. e., consumers have not been prompted to switch because therehas not been a unilateral increase in (I) prices above the current level, or (2) commercial time.
A Professional Corporation
VIRGINIA' WASHINGTON.D .C .• LONDON
1666 K Street, N.W., Suite 1200 Washington, D.C. 20006 Tel: 202.833.9200 Fa" 804.783.6507 or 202.293.5939\'1ww.williamsmullen.com
Ms. Marlene H. DortchApril 3, 2008Page 2
WILLIAMS MULLEN
Competition between XM and Sirius is the very reason why neither entity hasunilaterally increased prices or commercial time, so the FCC should not disregard the harms toconsumers that will result from the proposed merger. Competition is the only protection againstincreases in prices and increases in commercial time on satellite radio.
Also, C3SR discussed the appropriate structural remedies for anticompetitiveharms if the FCC ultimately decides to approve the merger. C3SR underscored the necessity ofastructural remedy to restore competition and ameliorate consumer harms.
Pursuant to Section 1.1206 of the Commission's Rules and DA-07-1435, thisletter is submitted via ECFS for inclusion in the public record of these proceedings, with anemail copy to the above-mentioned meeting participants. I
Respectfully submitted,
Julian 1. ShepardAttachment
cc (by email):Roy StewartDan BringMarcia GlaubermanJim BirdRoyce SherlockRebekah GoodheartDana SchererElvis StumbergsDavid ShimanJudith HermanRosemary HaroldJoel RabinovitzWilliam Freedman
I Redacted and umedacted copies will also be filed with the Commission pursuant to the FCC's second protectiveorder in this proceeding. Applications olSirius Satellite Radio Inc. and XM Satellite Radio /-Ioldings Inc.forApproval to Tram/er Contral, Protective Order, DA 07-4666 (reI. Nov. 16,2007). C3SR shall make the unredactedversion of the presentation available for inspection at the offices of Williams Mullen, 1666 K StreetNW, Suite1200, Washington, D.C. 20006. Individuals that have executed the appropriate Acknowledgment of Confidentialityshould contact Benjamin D. Arden at 202.293.8] 35 to coordinate access.
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