Tuesday, April 03, 2007

The NAB's Conflict Of Interest: Response To FCC Report On SDARS Competition

On March 26 (which SSG posted on Mar 27) the FCC released a report titled "Status Of Competition In Market For Domestic & International Satellite Communications Services" Yesterday, almost a week later, the NAB, to keep the issue alive, issued commentary, which highlighted just one aspect of this 69 page report. Although the FCC does not include iPods, MP3 players or internet radio as competition for satellite radio, IT DOES NOT EXCLUDE HD/terrestrial radio, and therein lies the conflict inherent in the NAB's smear campaign against the merger.

NAB Hails FCC Definition Of Satellite Radio Market
via www.fmqb.com April 2, 2007

A recent FCC analysis of satellite radio did not include any other audio options, such as MP3 players or Internet radio, as competition for the satcasters. While the Commission's definition of the satellite radio market is still tentative, NAB President/CEO David Rehr has released a statement in favor of the FCC analysis.

"This FCC decision that the current duopoly of XM and Sirius do not compete with radio, iPods or any other audio sources in the satellite radio market further undermines the arguments made by XM and Sirius to obtain a government-sanctioned monopoly," Rehr said. "While the FCC clearly intends to examine all issues surrounding the XM/Sirius merger, the hurdle the parties must overcome to convince the FCC to change direction is very high. This is a dramatic blow to XM/Sirius' presumption of a broader market, and still more evidence that XM and Sirius compete ferociously against each other in the market for nationwide multichannel mobile audio services, and no one else."

The FCC analysis was part of a larger report requested by Congress and notes that it "may not reflect the appropriate markets to be considered."

4/03/2007 06:36:00 AM

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