Talk about a limited set-aside of capacity for a merged satellite radio entity appears not to be enough for the nation's top broadcast lobby.
David Rehr of the National Association of Broadcasters wrote Federal Communications Commission Chairman Kevin Martin earlier this week on the pending satellite radio merger between XM and Sirius. In his letter, Rehr detailed his group's resistance to suggestions that each company could lease four percent of capacity to independent programming entities, saying such a move "will do nothing to replace the loss of head-to-head competition between Sirius and XM or the consumer benefits of that competition."
Rehr said mandated leasing requirements have been ineffective, such as leasing arrangements for cable or local phone service. "It is clear that any lease arrangements between a combined Sirius/XM and a qualified entity will benefit only the companies, not the public," the NAB president and CEO stated in his letter.
Also, Rehr said any mandatory lease arrangement would require "resource-intensive planning and oversight" by the FCC, with no predictable benefit for consumers.
Rehr said the commission should consider outside suggestions that propose a one-half divestiture of satellite radio spectrum by a merged satellite radio company.
"No other satellite radio spectrum is available, nor will become available any time soon," Rehr said. "The barriers to entry to compete with a combined Sirius/XM are virtually insurmountable."
Meanwhile, Rep. Ed Markey, the Massachusetts Democrat and chair of the House Telecommunications Subcommittee, also wrote Martin, asking that strict conditions be placed on the deal. Among his suggestions: A requirement that HD Radio technology is incorporated into satellite radio receivers, strong language on any capacity set-aside, and an extension of any price caps on service to six years.
SAW II
David Rehr of the National Association of Broadcasters wrote Federal Communications Commission Chairman Kevin Martin earlier this week on the pending satellite radio merger between XM and Sirius. In his letter, Rehr detailed his group's resistance to suggestions that each company could lease four percent of capacity to independent programming entities, saying such a move "will do nothing to replace the loss of head-to-head competition between Sirius and XM or the consumer benefits of that competition."
Rehr said mandated leasing requirements have been ineffective, such as leasing arrangements for cable or local phone service. "It is clear that any lease arrangements between a combined Sirius/XM and a qualified entity will benefit only the companies, not the public," the NAB president and CEO stated in his letter.
Also, Rehr said any mandatory lease arrangement would require "resource-intensive planning and oversight" by the FCC, with no predictable benefit for consumers.
Rehr said the commission should consider outside suggestions that propose a one-half divestiture of satellite radio spectrum by a merged satellite radio company.
"No other satellite radio spectrum is available, nor will become available any time soon," Rehr said. "The barriers to entry to compete with a combined Sirius/XM are virtually insurmountable."
Meanwhile, Rep. Ed Markey, the Massachusetts Democrat and chair of the House Telecommunications Subcommittee, also wrote Martin, asking that strict conditions be placed on the deal. Among his suggestions: A requirement that HD Radio technology is incorporated into satellite radio receivers, strong language on any capacity set-aside, and an extension of any price caps on service to six years.
SAW II