The organisation representing free-to-air broacasters in the United States, the National Association of Broadcasters, has come out strongly against the proposed merger of XM and Sirius Satellite Radio.

An official statement says the NAB would be “shocked” if the proposed deal went ahead.

NAB Executive Vice President Dennis Wharton says:

“When the FCC authorized satellite radio, it specifically found that the public would be served best by two competitive nationwide systems. Now, with their stock prices at rock bottom and their business model in disarray because of profligate spending practices, they seek a government bail-out to avoid competing in the marketplace.

“In coming weeks, policymakers will have to weigh whether an industry that makes Howard Stern its poster child should be rewarded with a monopoly platform for offensive programming. We’re hopeful that this anti-consumer proposal will be rejected.”

FCC Agency Chairman Kevin Martin stated last month that as the rules stand, any consolidation of the satellite assets would be illegal, however the rules could possibly be changed if a request to do so was forthcoming.

Both companies have been bleeding red ink for years and with growth in subscription numbers stagnating, a merger is seen as the only way to turn their fortunes around.