House Commerce Chair Encourages FCC to Impose Conditions on Merger

dingell.jpgIn a letter sent to FCC chairman Kevin Martin today, Congressman John Dingell (D-MI) chairman of the House Energy and Commerce Committee argues that 2 conditions ought to be set by the FCC before they approve the merger.

The first condition would be to hold the merged company to it’s proposed pricing models.

The second is that they open up manufacture of their radios.

They do NOT take a position on whether the merger should be approved. More details here.



Comments:

  1. At least those conditions have a logical basis.
  2. Here's the text of the letter. Thanks to Ryan at Orbitcast for providing the link!
  3. Quote:
    Originally Posted by RoadRunner View Post
    <a href="http://www.siriusbackstage.com/wp-content/uploads/2008/05/dingell.jpg" title="dingell.jpg"><img src="http://www.siriusbackstage.com/wp-content/uploads/2008/05/dingell.jpg" alt="dingell.jpg" title="dingell.jpg" align="left" border="0" /></a>In a letter sent to FCC chairman Kevin Martin today, Congressman John Dingell (D-MI) chairman of the House Energy and Commerce Committee argues that 2 conditions ought to be set by the FCC before they approve the merger.

    The first condition would be to hold the merged company to it's proposed pricing models.

    The second is that they open up manufacture of their radios.

    They do NOT take a position on whether the merger should be approved. More details <a href="http://www.reuters.com/article/mergersNews/idUSN0145322920080501" target="_blank">here</a>.
    Uh, huh-hu-huh-hu. Dingell.
  4. I agree with the conditions in the letter, now let's merge!!!!
  5. I'm all for it- but in the real world how do they handle issues like pricing for such things? What would they do say "you must maintain the prices you said for X years"?

    is that typical?

    what happens if in 1/2X years it looks like they are going to go belly up?
  6. Quote:
    Originally Posted by efudd View Post
    I'm all for it- but in the real world how do they handle issues like pricing for such things? What would they do say "you must maintain the prices you said for X years"?

    is that typical?

    what happens if in 1/2X years it looks like they are going to go belly up?
    It is typical for rates on things like utilities and phone service to be regulated by the government. This is why pay phones had $.10 calls for years then all of a sudden jumped to $.35 for calls and the government deregulated the rates. The phone companies need the price increase to justify maintaining the pay phones with cell phones comming around the corner. Then pay phones pretty much went into the history books because cell phones all but wipped them out in most places.

    Companies with price caps on products can always lobby congress to allow them to change the restrictions, or remove them.
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