SIRI » Topics » A. Sirius and XM Are Qualified to Control FCC Licenses .

This excerpt taken from the SIRI 8-K filed Mar 21, 2007.

          A.           Sirius and XM Are Qualified to Control FCC Licenses.

          Section 310(d) of the Communications Act requires the Commission to consider the qualifications of the proposed transferee as if it were applying for licenses directly under Section 308.142 Sirius’ and XM’s qualifications to hold and control FCC licenses are a matter of public record and have been reviewed and endorsed in prior proceedings. The Commission first granted Sirius and XM FCC satellite licenses in 1997.143 In the ten years that followed, the Commission reaffirmed Sirius’ qualifications to control this satellite license144 and granted Sirius earth station, wireless, and special temporary authorizations for terrestrial repeaters.145 The

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142           47 U.S.C. §§ 310(d), 308(b) (applications must set forth such facts as the Commission may require as to citizenship, character, and financial, technical and other qualifications); see also Applications of AirTouch Commc’ns, Inc., Transferor, and Vodafone Group, PLC, Transferee, For Consent to Transfer of Control of Licenses and Authorizations, Memorandum Opinion and Order, 14 FCC Rcd 9430, 9432-34 (¶¶ 5-9) (1999).

143           Sirius Authorization Order, 13 FCC Rcd at 7971; XM Authorization Order, 13 FCC Rcd at 8829. Satellite CD Radio, Inc. is a wholly owned direct subsidiary of Sirius; American Mobile Radio Corp. is the former name of XM Radio Inc., which is a wholly owned subsidiary of XM.

144           Sirius Satellite Radio Inc., Application for Transfer of Control of Station Authorization, Order, 18 FCC Rcd 215 (2003) (“2003 Sirius Transfer of Control Order”).

145           See, e.g., Sirius Satellite Radio Inc., Application for Special Temporary Authority to Operate Satellite Digital Audio Radio Serv. Complementary Terrestrial Repeaters, Order and Authorization, 16 FCC Rcd 16,773 (2001); XM Radio Inc., Request for Special Temporary Authority to Operate Additional Satellite DARS Terrestrial Repeaters, Sirius Satellite Radio Inc., Request to Modify Special Temporary Authority To Operate Satellite DARS Terrestrial Repeaters, Order and Authorization, 19 FCC Rcd 18,140 (2004); Satellite Commc’ns Servs. Information re: Actions Taken, Public Notice, Report No. SES-00853, File No. SES-LIC-20060721-01234 (Sept. 6, 2006); Satellite Commc’ns Servs. Information, Re: Actions Taken, Public Notice, Report No. SES-00861, File No. SES-LIC-20060818-01402 (Oct. 4, 2006).

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Commission also reaffirmed XM’s qualifications,146 and granted it special temporary authority as well.147

          In addition, the combined company will benefit from a highly experienced management team from both companies.148 Accordingly, Sirius and XM remain qualified to hold and control the licenses and authorizations involved in the proposed transaction.

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