The Buzz on Satellite Radio

Monday, September 17, 2007

The following are excerpts of public comments submitted to the Federal Communications Commission in connection with the proposed merger of XM Satellite Radio of the District and Sirius Satellite Radio.

"The sole control of currently available radio spectrum -- both technologically and legally -- would effectively stymie competition for black-owned businesses. Currently, XM and Sirius use incompatible delivery systems, rendering the possibility of similar programming nearly nil for the coming years. The result would eliminate opportunities for new entrants into the radio marketplace, particularly African-American businesses, from fair competition and severely reduce the provision of low-cost satellite packages to subscribers. Since the elimination of a tax incentive for radio ownership of people of color in the 1990s, there has been a dismal decrease in racial inclusion in the radio industry. If XM and Sirius were to merge, such a tragedy would worsen."

-- Gary L. Flowers, chief executive of Black Leadership Forum

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"I just want to express my feelings on the proposed merger. Right now I have Sirius and I love football. But I like baseball and I can't afford to pay two different services (Sirius and XM) to get baseball and football. I think it would be great and in the consumer's interest to have one satellite radio service that broadcasts baseball and football. Why should I have to choose between baseball and football?"

-- Frank Stanislovaitis, Gladwin, Mich.

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"Toyota currently offers both XM and Sirius as an option on its vehicles. . . . Toyota's primary concern is that the merger not threaten the continued viability of equipment already installed in vehicles, or require excessive and time-consuming investments in developing and deploying new hardware. However, if compatibility with installed hardware can be maintained, customer choice enhanced and prices lowered due to efficiencies, the merger may be in the best interest of the consumer."

-- George S. Cary on behalf of Toyota Motor

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"Truckers were among the first to embrace satellite radio and arguably have adopted it more quickly than the general public, making us particularly well qualified to evaluate what is good -- and what could be better -- about this particular audio entertainment option. Importantly, each satellite radio provider has introduced channels directed specifically at the trucking industry. For example, [the American Trucking Association] has worked with XM to support . . . a weekly segment in which representatives ATA's Technology and Maintenance Council discuss maintenance, inspection, equipment specifications and other technical issues. Sirius subscribers, however, cannot access this programming -- or Major League Baseball or other programming. And XM subscribers cannot access other programming that is unique to Sirius, such as NASCAR and the National Football League."

-- Richard D. Holcomb, American Trucking Association

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"Underlying the companies' arguments is the flawed notion that all audio entertainment offerings are part of an undifferentiated market. While it is true that audio services compete for the attention of listeners, that simple fact does not define the relevant market. If it did, the market would consist of all 'things that compete for people's attention,' including newspapers, magazines, books, television, motion picture releases and live theater, to name a few . . . as a producer and distributor of audio programming including via the satellite digital audio radio services platform, we anticipate substantial harm to independent entities such as NPR if that universe of providers is reduced from two to one."

-- George A. Lewis, National Public Radio

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"This merger proposes to combine two small players in the audio entertainment market. As a result, the merger will bring greater vitality and financial resources to this upstart technology. Allowing this to happen will, in turn, spark a new generation of services and products with more-advanced and user-friendly features. Consumers, of course, will be better off as a result."

-- Julian C. Day, chief executive of RadioShack

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"Slacker is a new personal audio service that will soon be available nationwide. . . . Although XM and Sirius have exclusive relationships with some car manufacturers, car dealers presently can often install competitor's satellite radios . . . but the proposed XM-Sirius merger could give the merged company enough economic leverage to obtain or expand exclusive arrangements with car manufacturers. And to the extent car manufacturers also have economic interests in the single satellite-radio provider, they will have an incentive to make it difficult or impossible for alternative technologies to be installed in cars."

-- Slacker Inc.