This may not directly relate to satellite radio, but it echoes the sentiment that some felt led to one of the longest merger reviews in FCC history.
Energy and Commerce Chairman John Dingell and Rep. Bart Stupak, Chairman of the Subcommittee on Oversight and Investigations, released a report yesterday that labels the FCC under Kevin Martin as "dysfunctional" and riddled with "abuses of power, suppression of information and manipulation of data."
The report is the culmination of a Congressional investigation that was formally launched earlier this year to look further into the FCC's regulatory and management practices.
"Our investigation confirmed a number of troubling allegations raised by individuals in and outside the FCC," writes Stupak. "The Committee staff report details some of the most egregious abuses of power, suppression of information and manipulation of data under Chairman Martin's leadership. It is my hope that this report will serve as a roadmap for a fair, open and efficient FCC under new leadership in the next administration."
"Any of these findings, individually, are cause for concern," added Dingell (who, incidentally, urged the FCC to impose conditions for the Sirius-XM merger. Thanks Jud!). "Together, the findings suggest that, in recent years, the FCC has operated in a dysfunctional manner and Commission business has suffered as a result. It is my hope that the new FCC Chairman will find this report instructive and that it will prove useful in helping the Commission avoid making the same mistakes."
Of course, Martin's office returned fired with a statement of its own:
"After a year of investigation, the Committee's primary criticism of the Chairman is that he spent too much money to ensure that deaf Americans have equal access to communications services," FCC Spokesman said in a written statement.
"The Chairman makes no apologies for his commitment to serving deaf and disabled Americans and for fighting to lower exorbitantly high cable rates that consumers are forced to pay."
The 133-page report itself lists multiple cases that the Congressmen find issue with, but
there doesn't appear to be anything related to the Sirius-XM merger. That's interesting, because the ridiculous delay at the Commission in coming to a decision was just shy of being criminal.
[Read the Congressional Report (PDF)]
"Our investigation confirmed a number of troubling allegations raised by individuals in and outside the FCC," writes Stupak. "The Committee staff report details some of the most egregious abuses of power, suppression of information and manipulation of data under Chairman Martin's leadership. It is my hope that this report will serve as a roadmap for a fair, open and efficient FCC under new leadership in the next administration."
"Any of these findings, individually, are cause for concern," added Dingell (who, incidentally, urged the FCC to impose conditions for the Sirius-XM merger. Thanks Jud!). "Together, the findings suggest that, in recent years, the FCC has operated in a dysfunctional manner and Commission business has suffered as a result. It is my hope that the new FCC Chairman will find this report instructive and that it will prove useful in helping the Commission avoid making the same mistakes."
Of course, Martin's office returned fired with a statement of its own:
"After a year of investigation, the Committee's primary criticism of the Chairman is that he spent too much money to ensure that deaf Americans have equal access to communications services," FCC Spokesman said in a written statement.
"The Chairman makes no apologies for his commitment to serving deaf and disabled Americans and for fighting to lower exorbitantly high cable rates that consumers are forced to pay."
The 133-page report itself lists multiple cases that the Congressmen find issue with, but
there doesn't appear to be anything related to the Sirius-XM merger. That's interesting, because the ridiculous delay at the Commission in coming to a decision was just shy of being criminal.
[Read the Congressional Report (PDF)]
The Congressional report was written by a Committee which is chaired by Dingell. You might remember that Dingell was very vocal in his opposition to the merger. Hence his tirade against Martin. Also Dingell called for more time for the FCC to review the meger. This call for more time was after 18 months of review had passed. Pay back is a bitch
It would seem to me that if the Federal Government's delay was responsible for a $1 billion Sirius XM loss in revenue, then they should provide a low-interest bridge loan to Mel to help repair this damage.
What a bunch of scumbags. All of them, the Congressmen and the FCC. Fuck them all.
I DON'T CARE.
I pay hard earned money for my Sat. Rad and they disrespted customers by changing the line-up and by being arrogant (Mel), star struck (Jamie Foxx?) and unqualified (interview with Scott Greenstein)
I may not like Bubba but he really made sense. When I purchased a sat rad in 2005 - I did alot of research and choose XM. Why? The sirus web site was so bad I could not even find a channel listing. XM allowed for internet streaming as well as AOL channels, I was able to download with Napster, ecletic deep play lists with Beyond Jazz and Fine Tuning and a Myfi Recevier which allowed me to record my favorite shows and listen to them on the train.
I don't enjoy hear Stern talk about his house in the hamptons or expensive cars especially now that he works for a company my money is helping support.
I am disconnecting - I just can't take it anymore
You're doing a great job, Kevvie
I have to laugh: Rangel! Boy, if that's not the pot calling the kettle black! It took til now to figure out that the FCC was dysfunctional? Didn't see that one coming at all.
How about useless?
Whats keeping SiriXM from suing the FCC? If they can find that the process was in fact delayed by persons abusing their power then why couldnt they?
Does this Guy not look like Harry Potter to you?
Please file under the "No Shit" compartment.
"Dysfunctional"? Try "corrupt"...
How much money was lost by individual investors because of Kevin, and why hasn't this been on the news??
The Media is corrupt.
When news returns to news (real news) and not that bullshit they feed us, then we will have our country back.
Kevin needs to go to jail for a long time.
They had to issue a report to inform people about dysfunction and abuses of power? No SHEEEE-IIIIITE !!! Fuck the report; google satellite radio merger delay - you'll get all the information you need about FCC corruption. This Bush administration has it's head so far up its ass that it can lick its own tonsils!
I love this. The same group of CROOKS and LIARS are now talking about the FCC as being "dysfunctional". Give me a break. These are the same people who presided over the biggest economic collapse in our history and are STILL dumbfounded on what to do. Please, when the democrats can figure out how NOT to run an economy into the ground....then they can criticize the FCC all they want. The FCC makes stupid moves every day, what's different here?
I don't understand why the FCC is being blamed for SiriusXM's dismal business model and current situation. Sure, the merger approval took a long time, but remember that the original grant of the license specifically stated that the two licenses could not be held by one entity. SO Sirius and XM wanted to - ok, really needed to change that because both companies were really financial vegetables - change the terms of their operating structure.
They got the merger - congrats - but now the delay by the FCC is the cause of their problems? Why didn't Mel K make sure he had financing prearranged? I really have to believe that things are very very bad at Sirius XM. I don't believe that they are gaining any new subs and that the cost control measures are having any real or meaningful effect.
Apparently, my thoughts are shared by Wall Street that allows a narrow trading band measured in the 100ths of a penny.
One of the classic signs of poor management is that management refuses to take responsibility for any part of the situation they find themselves in. Heck, even the auto execs acknowledge that a good part of their current situation was poor design and poorer quality.
Shame on Mel and the Board for refusing to accept anything except cash for themselves and private jet rides (see Mel's contract).
Best of luck.
Take a good long look at this boyish, pre-pubescent looking guy. If anyone knows what a man with very low testosterone looks like, you know that he could be the poster boy. Looks andropausal to me. Can someone get him to an endocrinologist? I am serious. This guy looks like he is deficient of androgens. He needs a few testosterone shots from his doctor.
I agree - don't blame the FCC - that is another topic. The fact was that current Sirus XM management was not prepared strategically or operationally to move forward with the merger. Mel K. was just hell bent on being the market leader.
Especially for us XM subs. I too put alot of research into selecting a radio.
Blaming the FCC is a Howard Stern tactic. Poor Howard had to leave radio for Sat. at 500 million. The man is a shrewd business man. With some creativity he could have stayed on Terr. radio. Then again why not make have a billion rather than 25 million.
I shouldn't pick Howard but the moment he moved over other high-priced talent started to be hired. Do you thing Ben Smith of Fine Tuning or Ms. Samartino of Beyond Jazz made anywhere near a million per year?
So here we are consumers who invested in a technology and we are having all of the benefits taken away. NOT FROM THE FCC, But from very bad management at sirus xm.
Tony
The FCC has hurt Sirius XM because they took too long to make a decision on the merger. A decision either way, a year before the actual decision would have placed the stocks in a better position before the current economic debacle. The current economic debacle was caused by the psuedo-deregulation of FM/FM, ie let's let FM make the rules, and protect them from their stupidity. In the beginning, it was Democrats who appointed the CEO and influenced the mortgage market for the poor.
Bringing the auto makers into the argument, is only relevant because it points to the collateral damage to industry from government mismanagement of industry. Read the CCN Money article on what's killing Detroit. Having Congress reinforce the false perception about Detroit's quality and products, does not help. Note that when gas prices peaked, and before the economic debacle, GM sales of trucks went up because they provide the best gas mileage. True, cars are the point and Detroit is making good cars now, many of which beat the competition in gas mileage. Hybrids are not economic for the owner or the companies that make them. Batteries are expensive to make and replace. It's too late for the government to back down from fiscal help for the damage caused by FM/FM mismanagement.
Time to take the politics out of reality. Government management of industry has failed badly. The Democrats want to control, because it's profitable for their interests, and those interests are not the middle class. Dems got defeated on the merger question, however they strung out the merger question and now may have to help fix the problem they caused. It's a self-fulfilling prophecy of power.
Whenever the government becomes a party to whatever deal you have going you are going to come out on the losing end. The same goes with the current bailouts, especially the auto manufacturers. They are selling their souls to get that money and they will pay dearly. Once you get the government in your pants it's difficult to get them out.
Has everyone who blames the FCC forgotten that BOTH SiRIUS AND XM agreed that the same company could not hold the same license? This term was included BEFORE the licenses were issued and was AGREED to by BOTH COMPANIES.
It's the FCC's fault that the companies couldn't manage their respective businesses. WHy do you think the merger was proposed? I can tell you that XM execs were fearful that without the merger XM would be out of business. While I can't tell you from what the SIRI insiders thought, a quick read of its financial statements leads me to believe that the thoughts were very similar. Despite what Nate and Gary and all the bigwigs said - XM was down to less than $250 in October/November 2007. That was not enough to survive. That's whey they got rid of the WalMart team and the locations inside the malls.
The FCC did not ruin the value of the companies - management did and what was their punishment? $4.5 for Vernon Irvin; $10M+ for Nate Davis; $9M for Gary Parsons and his son who drew a paycheck for doing little if anything that a trained monkey couldn't due. I mean no offense to trained monkeys.
OK - you pro-merger fans got what you wanted. Congratulations. Now, how may former employees who were promised severance packages are going to see full payout when the resulting company files bankruptcy after failing to remain listed on NASDAQ and won't be able to refi its exhorbitant debt?
It was a great dream that both companies' management teams screwed up royally.
Again - congrats. But stop with the FCC baloney.
I just want to bitch slap that little punk ass face. He looks like a spoiled little jerkoff; no wonder the merger took forever.
They are just figuring this guy out now?? Everybody knows that FCC stands for
"Favors Corporate Cash".
So the question now is who is the new head of the FCC gonna be?