Washington - Following more than a year of regulatory scrutiny, XM Satellite Radio's (NASD: XMSR) $3.9 billion merger with rival Sirius (NASD: SIRI) appears on the verge of completion following a deal between the companies and the Federal Communications Commission (FCC) to settle two-year-old compliance issues related to signal interference. According to the Associated Press, XM will pay the government $17.5 million and Sirius $2.2 million, with both companies taking steps to address any potentially non-compliant radios and fix scores of signal repeaters.

With the deal, the FCC told the AP that Republican Deborah Taylor Tate will cast her vote in favor of the merger, breaking a 2-2 deadlock.

"This was an issue that Commissioner Tate thought was important for us to deal with prior to her supporting the merger," FCC Chairman Kevin Martin told the AP.

"I think that this was a significant issue that we can take off the table that I think will allow us to move forward soon on finishing up the merger."

Related Links:
http://biz.yahoo.com/ap/080724/fcc_xm_sirius.html (AP)

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