They Fuse, You Lose

There's not much government can do about this behavior but encourage more companies to contest a market. So why does it keep working in the opposite direction? At best, it ignores ways to open industries to more competition; at worst, it encourages further consolidation.

Consider the recent history of radio. Before satellite broadcasts could get off the ground, relaxed ownership rules allowed commercial FM to be largely taken over by Clear Channel and its monopoly-minded ilk, resulting in a nationwide radio dial of sound-alike stations.

Two other technologies, low-power FM and digital AM, could have restored some diversity to the public airwaves, but inaction or interference by the Federal Communications Commission and Congress has consigned both to irrelevance so far. And so for years, only satellite radio could offer an alternative to FM. (Lately, HD Radio has finally begun to open up FM programming.)

Now, XM and Sirius suggest that wireless broadband will keep them honest; customers turned off by both FM and satellite radio will be able to listen to music sent through their cellphones.

But most wireless carriers impose grotesque limits on what you can listen to or watch on a phone: Listening to a Web radio station on a phone's Internet connection violates most of their contracts. This isn't bringing the diversity of Internet radio to cellphones -- it's recreating the controlled universe of cable TV. And it's unlikely to offer much of a meaningful alternative to dissatisfied listeners.

It's too soon to know what the government will do with the XM-Sirius merger proposal. But by not addressing these underlying problems, Washington isn't just approving telecom monopolies, it's aiding and abetting them.

Living with technology, or trying to? E-mail Rob Pegoraro atrobp@washpost.com.