Last Friday evening, the Federal Communications Commission (FCC) approved the proposed merger of XM and Sirius Satellite Radio by a 3-2 vote after more than a year and a half of review.

The National Association of Broadcasters finds this decision extremely disappointing. It is a complete reversal of the FCC’s original intent that the companies never be allowed to merge.

To secure the votes for the merger, several conditions were made, including a three-year price cap, offering more educational and minority programming, producing interoperable radios, allowing any radio-device manufacturer to build and sell transmitters and providing a la carte channel selections - including a family friendly tier and lower cost tiers. The merged entity is also barred from exclusive deals that would prevent the inclusion of HD radio chips in satellite radio receivers.

The FCC also levied a nearly $20 million fine on the companies for previous rule violations, and will put in place a strict five-year compliance plan, almost twice the FCC’s customary compliance period, requiring reporting every three months, hiring a compliance officer and issuing consumer notifications regarding non-compliant radios. Commissioner Deborah Taylor Tate released a statement on Friday, providing additional insight into what conditions will appear in the final order.

Despite these conditions, allowing the only two satellite radio companies to merge into one monopoly provider is a loss for consumers. The monopoly provider will control more spectrum than the entire AM and FM band, exercising complete control over content, prices and service for customers.

Following the vote, NAB Executive Vice President Dennis Wharton said, "We continue to believe that consumers are best served by competition rather than monopolies."

The merger order will be released soon by the FCC. We will continue to keep you apprised of these developments.