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Friday, February 23, 2007

Satellite Radio TechWorld Sheds Light On XM's Repeater Inquiry

Friday, February 23, 2007, via Satellite Radio TechWorld
XM's Notice of Inquiry for Its Repeaters

Most of you by now have heard about XM's disclosure that it received a notice of inquiry (NOI) from the FCC. It should not be a surprise to our readers here. Ultimately it could result into a notice of apparent liability (NAL), which will result in a "forfeiture" of some magnitude.

The FCC has been handing out NAL's right and left the last few weeks. They have handed out NAL's every day this month, except one. A quick count shows 156 NAL's or other forfeitures this month alone, resulting in a weighted average of $4,700 for each incident. Most of these were for failure to file for renewal in a timely matter. The vast majority of the forfeitures were for $1,500 (73). The next most popular forfeiture was for $7,000 (47). Forfeitures were for as much as $25,000 (1) for the month. There were only 17 forfeitures above $7,000.

Since both XM and Sirius volunteered the information, one would expect the forfeitures to be minimum. We would guess a worse case of $1,500 per incident. The total amount would depend on whether the FCC considers the network of repeaters as a whole or individually. And then there are the 4 repeaters that XM continued to operate with authority. Quite possibly, the FCC could look unfavorably on this and hit them with the maximum penalties...read more: here

2/23/2007 05:04:00 PM


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