The Justice Department said in late March that fears over the fact that the merger would hurt competition or customers were unfounded. New York-based Sirius Satellite, subscription-based satellite radio firm, now received the go-ahead from the FCC chair Kevin Martin to purchase rival D.C.-based XM Satellite Radio for $3.8 billion.

A provision which details noncommercial and minority programming and a three-year price freeze for customers of the merged company has helped Kevin Martin decide in favor of the merger, clearing one final hurdle. However, a formal vote still has to take place, but that is hardly a problem now that Martin has publicly backed the deal.

The two companies also agreed to allow competition between makers of satellite radio receivers, another decision which appeased FCC's concerns.

Several customer groups had lobbied against the merger which would bring shows hosted by Oprah Winfrey, Martha Stewart and Bob Dylan under the same roof. The National Association of Broadcasters said the move would create a monopoly.

However, they were answered that the deal wouldn’t hurt customers. In fact, the merger would lead to a broader network of channels giving customers more choices. When it comes to competition, the satellite radio firms are facing enough competition as it is coming from their traditional AM/FM radio, internet-based radio stations and programming delivered by MP3 players such as iPods.

Shareholders of both satellite radio firms overwhelmingly backed the merger and approved it in November. Both companies are currently losing money. By merging, XM Satellite, with its nearly 8.6 million subscribers and Sirius, with its 7.7 million subscribers, might be able to cut costs and streamlining operations, thus helping them to turn to profit.