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Tavycal

03/24/08 6:15 PM

#4003 RE: titan3 #4002

A source at the FCC said FCC Chairman Kevin Martin has yet to make a proposal either approving or opposing the XM-Sirius combination, but has asked the agency's staff to draft documents for different possible outcomes.

This source said the FCC could be strongly influenced by the Justice Department accepting the satellite radio companies argument that they face stiff competition from traditional AM/FM radio, high-definition radio, MP3 players and audio delivered by mobile phones.

"I think it would be hard to go in the complete opposite direction (from the Justice Department)," said the source

http://www.reuters.com/article/newsOne/idUSWAT00918420080324