RSSPro-Obama senators petition FCC to review XM + Sirius merger
By Scott M. Fulton, III | Published June 30, 2008, 1:24 PM
The prospective partners in satellite radio may be prompted to consider expediting their deal arrangements, perhaps before November, in light of a letter to the FCC from likely policymakers, should a Democrat take the White House.
A trio of Democratic senators, including two who were early backers of Sen. Barack Obama's (D - Ill.) bid for the presidency, sent an open letter last Friday to US Federal Communications Commission Chairman Kevin Martin, calling on him to, at the very least, impose stricter requirements that XM and Sirius satellite radio produce interoperable radios.
Both merger partners had agreed to produce such devices for their subscribers within one year of completion of their deal, which was already approved by the Justice Dept. However, in the act of approval, the DOJ issued its own opinion stating that such a development could actually lead to reduced consumer choice, implying that leaving two separate services -- even though they're run by the same company -- would be a pro-competitive move.
"In light of a failure to provide interoperable radios notwithstanding Commission requirements to do so," write Sens. John Kerry (D - Mass.), Claire McCaskill (D - Mo.), and Ben Cardin (D - Md.), "we remain skeptical about the merged entity's ability to deliver on this fundamental requirement. To ensure that the HD radio and interoperable receiver mandates are enforced, as well as the a la carte radio promise made by Sirius [enabling subscribers to choose their stations], the FCC or another third party should certify these radios as well as enforce a robust open access requirement, so that the merged entity cannot be a gatekeeper to equipment attached to its system."
Sen. Kerry's early endorsement of Sen. Obama's candidacy was seen as critical to some of his primary wins this year, especially coming at a time when Kerry's 2004 running mate, former Sen. John Edwards (D - N.C.), was still actively in the race. Sen. McCaskill, meanwhile, was another early Obama supporter, and remains a player in, at least, the public game over who should get the vice presidential ticket. Sen. Cardin, however -- though a close colleague of former candidate Sen. Hillary Clinton (D - N.Y.) -- was a latecomer to the endorsement rally, having withheld his advocacy for any candidate until earlier this month.
Still, the advocacy for stricter control over this crucial merger could give companies a preview of both telecommunications and merger policy under an Obama administration. While opponent Sen. John McCain (R - Ariz.) has proven a skeptic of mergers during his tenure in the Senate, he has yet to express a widely disseminated viewpoint on this particular matter.
The senators are also calling upon Chairman Martin to further tighten the requirements of the merger, including having the merged entity lease as much as 50% of its system capacity to third party broadcasters, and perhaps 20% as a minimum, instead of the 12 channels or 4% the prospective partners have promised. They're also asking for new interoperable radios to also contain HD radio receivers as well, citing the FCC's historical requirement that all analog TVs be capable of receiving every channel.
"While we continue to believe that the wisest course of action is to disapprove the proposed XM-Sirius merger," they write, "we believe that the above conditions could mitigate the harms to the public and consumers that will occur in the event the Commission decides to change its rules regarding [satellite digital radio] licenses and approve the license transfer application."
This is why you should never vote for A Dem. They can't help being anti-business.
Ms. Tate – 202-418-2500
Dtaylortate@fcc.gov
Mr. Adlestein – 202-418-2300
Jonathan.adlestein@fcc.gov
Mr. Copps – 202-418-2000
Michael.copps@FCC.gov
Mr. McDowell – 202-418-2200
Robert.McDowell@FCC.gov
Mr. Martin – 202 –418-1000
KJMWEB@FCC.gov
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|I always expect more from my elected representatives than I get. This letter is disgusting. What "harm" are they attempting to "mitigate?" The only harm here is to me, a consumer and member of the public. This is so transparent. Do they think I'm so stupid that I can't choose for myself and they need to step in and help me somehow? And why do they want to take up to 50% of the spectrum and do what with it? Elected representatives are clearly the problem here, not the FCC.
They want HD (it certainly does not mean high definition) capability in satellite radio receivers so, are HD receivers going to be mandated to have satellite radio receivers? Seems only fair. As a consumer I don't want to pay for HD when I am buying satellite radio.
Elected representatives are the problem and have nothing to do with the solution. Why do people keep sending this scum back to Washington?
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|This is all HOG-WASH! It is the Corrupt entities and individuals reach for straws to try and kill this deal and keep their foot on their throats. It is the most corrupt thing I have witnessed in one of MY Governmental agencies. The time for an investigation and for some to be relieved of their sworn duties is NOW.
I serve my country in the military and right now the FCC MARTIN and senators' kerry, mcCaskill and cardin disgust me!!! Why do you not just come out and say it...That if you are for the Merger or the MERGER is good for CONSUMERS, and INVESTORS and HELL The overall Economy the you will not receive your kick-backs and payoffs from the NAB.
STOP IT YOU MAKE ME WANT TO VOMIT!
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|Kerry is disgusting.
$4.50 gas, kids dying in a made-up war, the market in turmoil, jobs tanking, people going sick without insurances yet he has the time to thrice lobby the FCC for something fully out of his arena and jurisdication.... why?
Nab Money. Pure and simple!
Ask the Senators how much they received from the NAB over the last three years. These Senators are pond-scum on a good day.
The best Government your Money can buy!
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|I'd say Kerry, McCaskill, and Cardin are holding out for political donations from both XM and Sirius. Once those checks clear, they'll flipflop just like obama and be on board. Remember, these are the guys who don't count votes anymore....
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|Just let them merge and be done with it, so that they can both go out of business together instead of separately.
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|..but no doubt they would consider the merger more favorably if Sirius/XM agree on instituting a fairness doctrine, though how that applies to Stern I don't know. Equal time for Jack Van Impe?
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|I guess the senators are getting funded the NAB. The NAB want to keep their monopoly, but they can't because Ipods etc are carving away at their control. So they're crying to the FCC, but the FCC is smarter then they are.
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|My only concern is that subscription radio hardware doesn't become standard equipment in automobiles. At that point there will be a hole in my dash.
Not because I hate subscription radio, I have nothing against it.
I simply spend too little time in an automobile to justify having it... and I want to keep some sort of broadcast radio so I can listen to local stations when I do use my vehicle.
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|"FCC Chair backs approval of Sirius-XM merger"
"Open Device Access, providing technology standards to allow for any device manufacturer to make satellite radios... UPDATE: Noticeably absent from the agreed concessions are iBiquity's proposal to require HD Radios be built-in to satellite radios."
http://tinyurl.com/4tdmhv
"Pioneer says HD Radio succcess should be decided by open market, not forced inclusion"
"IBiquity, the company behind HD Radio, is making enemies all over the place, the latest of which is Pioneer. The Japan-based corp, which makes the popular Inno, recently told the FCC [PDF] that iBiquity's scheme to force satellite radio manufacturers to include HD Radio playback is absurd. The iBiquity conditions would limit the breadth of radio product offerings to consumers, limit which radio component suppliers’ products be designed into radios, have the effect of decreasing AM/FM tuning performance, unnecessarily increase costs to consumers uninterested in HD Radio and interfere with the useful and healthy free market mechanisms extant in radio electronics purchases."
http://tinyurl.com/5f9q2b
What a bunch of garbage - HD Radio is a farce:
http://hdradiofarce.blogspot.com
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|One has to wonder if it would be better for congress to just make sure that no laws were broken (other than the fact that Sirius and XM were forbid to merge initially when their licenses were issued) and then just let them merge and let the market figure it out. If people like the new company and offerings, they'll support it. If not, it will die. At that point, maybe another entity will pick up the licenses, buy the satellites, and try again.
It can't be this hard to merge (or reject the merger) of two ENTERTAINMENT companies. It's quicker merging phone companies and they provide essential services. The NAB must be really pushing hard behind the scenes.
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|and it continues to drag on.................
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|I just have to say that if so much scrutiny was put on the Exxon/Mobil merger I would still be driving my recently sold vehicle because I couldn't afford the gas. And they are concerned about the radio my vehicle? Come on! Do they really care about "competition" or are they getting paid by special interests (NAB) to squash competition. People see these politicians for what they are.
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|I SERIOUSLY doubt that the exxon/Mobil merger has anything to do with $145/barrel oil...
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|FCC members must have numb butts from sitting on the pot for what 515 days now !
Either vote or get off the pot !!!!!!!!!
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