Settlement

XM and Sirius to try to settle FCC investigation

XM and Sirius to try to settle FCC investigation; companies would pay US Treasury $19 million.

XM Satellite Radio Holdings Inc. and Sirius Satellite Radio said Thursday they are trying to settle enforcement matters with the Federal Communications Commission.

FCC approval of the proposed merger of Sirius and XM has appeared in recent days to hinge on their settling various violations.

The companies said in 2006 the FCC was investigating the compliance of certain radios that include FM transmitters, and of terrestrial repeaters used to broadcast the companies' signals.

The companies hope to enter a consent degree with the FCC, terminating the inquiry. The decree involves adopting compliance plans and taking steps to address noncompliant radios in the hands of customers.

Both companies would expect to make voluntary contributions to the U.S. Treasury, $17 million for XM and $2 million for Sirius.

XM would have 60 days to shut down 50 terrestrial repeaters and shut down or bring into compliance 50 others.

Sirius would need to bring into compliance or shut down up to 11 of the devices within 60 days.

The FCC has not yet indicated whether it would improve the consent decrees.

(Published by AP - july 24, 2008)