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NPR Weighs In On Satellite Merger
July 16, 2008

National Public Radio (NPR) is the latest organization to contact FCC Chairman Kevin Martin about the proposed satcaster merger. In a letter sent to Martin earlier this week, NPR repeats its position that the merger "would undoubtedly diminish viewpoint diversity" and calls for HD Radio integration into future satellite radio receivers.

NPR CEO Dennis Haarsager says in the letter that public radio has been at the forefront of HD Radio broadcasting and "a merger condition requiring the inclusion of HD Radio technology in all new satellite receivers would ensure a competitive market for digital terrestrial broadcasting, while preventing monopolistic market forces from squeezing out this growing service."

As for the requirement that the merged XM and Sirius offer part of their combined spectrum to other broadcasters, Haarsager says, "Reserving an appropriate percent of the satellite radio spectrum for programming from non-commercial public and minority broadcasters will contribute to the multiplicity of voices that is an inherent component of the dialogue of America’s democracy."

Meanwhile, House Subcommittee on Telecommunications and the Internet Chairman, Rep. Edward Markey (D-MA) also sent a letter to Martin. Markey said the proposed merger is "an extraordinary request [that] compels the Commission to adopt several extraordinary conditions if it wishes to approve the merger. In my view, without meaningful, enforceable conditions, this proposed merger should be blocked as inconsistent with the public interest."

Markey suggests a number of qualifications for the merger, including the FCC taking "immediate steps to enforce its previous requirement for interoperable receivers" and preventing exclusive equipment deals. He also floats the idea that a merged XM-Sirius would become increasingly reliant on ads. "Such a trend will undoubtedly affect the viability of free, over-the-air radio stations in many markets. This would be similar to what occurred during the development of cable television when cable operators initially did not air commercial advertisements but later supplemented revenue from subscription fees by airing such commercials," Markey writes.

Markey again echoes the sentiment that HD Radio should be a part of new satcaster receivers, because "Only through such a mandate will the Commission adequately ensure that competition in digital radio services is as robust as possible and that free, over-the-air radio remains a vibrant marketplace alternative for consumers well into the future." He also supports leasing satellite spectrum to minority broadcasters and proposes that a price freeze for consumers be extended from three years to six.




 
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