Satellite radio deal

Common sense prevailed at the Justice Department back in March when officials there rejected the twin notions that satellite radio is either a dangerous would-be monopoly that needs to be "busted up" like Standard Oil, or else a vital public utility in need of micromanagement by regulators, akin to the local water works or electric company.

Instead, the Justice lawyers said the two existing satellite radio providers -- Sirius and XM -- could move forward with a proposed merger.

"The likely evolution of technology in the future, including the expected introduction in the next several years of mobile broadband Internet devices, made it even more unlikely that the transaction would harm consumers in the longer term," the Justice Department said.

Indeed, it's hard to imagine anyone for whom paid, mostly commercial-free radio is a "necessity." What might an evil satellite radio monopoly do? Force subscribers to listen to 150 channels of Christopher Cross, Neil Diamond and Barry Manilow?

The usual suspects were up in arms.

"If this is what our competition cops do, we might as well close shop and save taxpayers a few hundred million dollars, because they're not doing their jobs," said Gene Kimmelman, the Washington lobbyist for Consumers Union, nonprofit publisher of Consumer Reports magazine.

Mr. Kimmelman was close to being right, but not in the way he thinks. In a market where competitors are free to enter, the "monopoly trust" that gains control of a market segment and then jacks up prices is a beast seen about as often as the Sasquatch. Effective monopolies grow dangerous only when supported by government edicts that limit or bar entry by new competitors. Look at the long-term price trends for air fares and long-distance phone service since those industries were at least partially deregulated.

But if Mr. Kimmelman was close to right when he suggested regulators "might as well close shop and save taxpayers a few hundred million dollars," he'd be even more on the money if he were to apply this same advice to the Federal Communications Commission.

The FCC was launched early in the last century to ration supposedly rare broadcast frequencies. Today, in an era when thousands of channels and data sources are available online, on cable and via satellite, the notion that consumer choice would somehow be narrowed by "allowing" Sirius to buy out rival XM -- when neither is currently making money -- is absurd.

FCC Chairman Kevin Martin on Sunday bowed to the obvious, recommending approval of the $5 billion deal, but not without conditions. So, in order to be "allowed" to complete a merger that may let the satellite broadcasters stay in business, they must guarantee a three-year price freeze for customers and turn over 24 channels to "noncommercial and minority programming," as defined by the government. Yay.

The delays and the posturing have been absurd. But, in the end, Mr. Martin has come down on the right side. His fellow FCC commissioners should promptly OK this long-delayed deal.