XM-Sirius Success Hinges on Concessions
05/27/08 - 05:31 AM EDT
Robert Holmes
Similarly, iBiquity Digital is hoping the FCC will force XM and Sirius to open up their receivers to other satellite broadcasters and developers. iBiquity is the company behind HD Radio, which also has been fighting to gain traction amid competition from satellite radio, terrestrial radio and MP3 players like Apple's (AAPL Quote - Cramer on AAPL - Stock Picks) iPod.
iBiquity is asking that the FCC condition its approval on the requirement that the combined XM-Sirius include HD Radio technology for digital AM and FM radio in all satellite receivers. iBiquity has proposed that the commission impose this requirement for satellite automobile receivers within three years of the effective date of its approval of the transfer application and, for all other satellite receivers, within one year of the effective date of the approval. "iBiquity believes there are structural barriers to that competition today and the combination of Sirius and XM will exacerbate those problems," the company said in a letter to the FCC. "iBiquity believes a combined satellite company will have greater economic leverage to impose such barriers throughout the distribution channel for radios to the exclusion of terrestrial digital radio." Along the same lines, U.S. Electronics, which previously manufactured radios for Sirius, has asked the FCC to address the open device issue. U.S. Electronics said in a letter that it "and many others like it want to be able to make satellite radios in the future. If the combined company is also permitted to say that since it has a proprietary interest in the chip that connects the radio to the satellite network it will only deal with its favorite manufacturer, that would result in a second monopoly."
RSS
