FCC approves Sirius Satellite acquisition of XM

WASHINGTON (Reuters) - Sirius Satellite Radio Inc's purchase of XM Satellite Radio Holdings Inc was approved with conditions by U.S. communications regulators on Friday, clearing the way for a deal that will leave just one U.S. satellite radio service.

The Federal Communications Commission voted 3-2 in favor of a proposal that would allow the deal to proceed as long as the companies meet a series of consumer protection conditions, including a three-year cap on prices, set-aside of channels for minority and non-commercial programming and payment of a $19.7 million penalty for past FCC rule violations.

(Reporting by Peter Kaplan: Editing by Tim Dobbyn)