iBiquity met with the FCC... again

Thursday, January 24, 2008 at 5:49 AM
Tags: FCC, HD Radio, iBiquity, Merger, Satellite Radio, Terrestrial, The Competition

Polk I-Sonic ES2
Adding to the list of merger-related activity at the FCC recently, iBiquity Digital Corporation held yet another meeting with members of the Commission earlier this week, according to a recent FCC filing.

iBiquity CEO Robert Struble and counsel met with Commission Jonathan Adelstein and Rudy Brioché of Commissioner Adelstein’s office. Their discussion was similar to previous meetings in that iBiquity expressed "concern" over competitive implications should the merger be approved.

Speaking of implications. iBiquity implies quite a bit at these meetings. From the filing:

"iBiquity raised concerns about exclusive arrangements between XM and Sirius and automobile manufacturers that could serve as a barrier to iBiquity’s ability to sell HD Radio receivers to end users. iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products. iBiquity discussed its concern that the merger has the potential to exacerbate these problems."

Interesting, so now that sluggish growth we're hearing about is XM and Sirius' fault? Seriously? Remember, some studies predicted that 1.5 million HD Radio units would be sold in 2007 (and that was reduced from 2.1 million), while other research firms, like Barrington Research, had hoped for a more conservative 1 million units.

"Our impression is that the actual unit sell-through was only about half that total," said Barrington Research analyst Jim Goss. That's roughly 500,000 units for the entire year if your math is rusty.

So the burden of that failure is now being placed on satellite radio's mystical "incentives" that somehow "discouraged" the sale of HD Radios. That is, despite HD Radio being all over CES this year, and being included in new tabletop radios that forgo XM in favor of iTunes Tagging support. Yeah, I can definitely see proof of iBiquity's accusations there.

iBiquity's solution to these "concerns" of course hasn't changed since last month - they just want the government to require that HD Radio technology be included in every satellite radio sold.

Oh, and Goss also added that iBiquity is getting $5-$6 for every HD Radio receiver sold. So, you know, requiring that HD Radio technology be included in every Sirius and XM unit sold has absolutely nothing to do with the interests of iBiquity. Nah... it's all "to insure a level competitive playing field," right?

[FCC Filing (PDF), Radio Ink]

UPDATE: Looks like iBiquity met with Commissioner Michael Copps and Rich Chessen of Commissioner Copps’ office as well. [FCC Filing (PDF)]

TrackBack/Ping:

Comments

If iBiquity is concerned about OEM satrad installations then they ought to get off their butt as both XM and Sirius did and start courting the auto manufacturers. Neither of the satrad companies had the backing or support from the government when they secured those installation contracts. The last thing that the public wants is more governmental interference where it isn't needed. Let the marketplace decide what it wants and doesn't want.

"Regarding the Technical Aspects of the SDARS Providers XM and Sirius"

"There are significant differences in certain technical aspects of the two SDARS systems as deployed by XM and Sirius. The systems as currently deployed are not interoperable. That is to say, an XM receiver cannot receive the Sirius signal and vice versa. Thus, as is true today, if the proposed merger of XM and Sirius were consummated, consumers would still need to purchase a new interoperable receiver in order to receive the signals of both providers. These differences in system operation, function, and structure make the design and implementation of a single unified and interoperable receiver both complex and expensive. In fact, both XM and Sirius have been working in a joint venture to develop an interoperable radio since 2000. At this time, no interoperable radios have been introduced into commercial production."

http://tinyurl.com/2kek8t

Does iBiquity realize that creating interoperable satrad receivers is technically infeasible. So far, being a total failure, iBiquity wants to use regulatory schemes.to promote their defective technology - wait until consumers start returning their new cars, due to "defective" in-dash HD radios. iBiquity will take the money and run, after it is too late. The FCC already stated that, "effective markets tend to provide better solutions than regulatory schemes":

http://www.epa.gov/fedrgstr/EPA-IMPACT/2007/August/Day-15/i15922.htm

everyone wants their piece of action on the merger--So let Sirius and XM spend billions, be near bankrupty, do all the work and sweat---and then just come alone and get a free ride---well, it does show one thing---there is competition!

As I have posted before, I have no problem with a requirement that Sirius/XM have HD installed in every reciever. What I do have a problem with, is iBiquity trying to get away with this for free.

You want HD in every Satellite Radio?
- iBiquity needs to foot the bill for the development costs of that style radio.
- iBiquity needs to share in the cost of development and incentives.
- iBiquity needs to pitch in for Rev Share (they are making revenues off of HD right? Even if it is by commercial sales, it is revenue.)
- And if they do get in, the HD cannels need to follow the same RIAA agreement that Satellite Radio does.

So install those HD radios into SatRad iBiquity... but do your fair share of paying for it too.

iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products

Are you kidding isnt that the point of a business?
Its like saying Coke-Cola is discourging Pepsi Products.
Of course they are. they'd be stupid not to.

iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products

Are you kidding isnt that the point of a business?
Its like saying Coke-Cola is discourging Pepsi Products.
Of course they are. they'd be stupid not to.

iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products

Are you kidding isnt that the point of a business?
Its like saying Coke-Cola is discourging Pepsi Products.
Of course they are. they'd be stupid not to.

iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products

Are you kidding isnt that the point of a business?
Its like saying Coke-Cola is discourging Pepsi Products.
Of course they are. they'd be stupid not to.

Ryan, Can you please put up a tutorial on how to post in Orbitcast. Everyday some "Anonymous Coward", can't wait for text to go through the process of posting and we end up with 4 to 6 posts of the same thing.
I find this VERY annoying.
I find this VERY annoying.
I find this VERY annoying.
I find this VERY annoying.
Get it?

"iBiquity raised concerns about exclusive arrangements between XM and Sirius and automobile manufacturers that could serve as a barrier to iBiquity’s ability to sell HD Radio receivers to end users. iBiquity also expressed concern that satellite radio companies may have used subsidies and incentives to discourage proliferation of HD Radio products."

Haha! iNiquity actually thinks that anything other than the lousy peforming technology itself has caused the big yawn among consumers? Word travels quickly and the word is out that you don't buy one of these POS, they just don't work. I guess there should have been an 8 track Alliance to try to force cassette deck manufcturers somehow to inlude 8 track machines with their cassette decks when consumers realized just how bad 8 track machines really were? When is the head WEASAL and his minions going to stop trying to force acceptance of an unneeded, consumer rejected still born pile of krap technology that should have been in the Junk Technology Hall of Fame already along with all the rest of the stupid ill conceived concepts that just didn't gain acceptance for obvious reasons?

"iBiquity's solution to these "concerns" of course hasn't changed since last month - they just want the government to require that HD Radio technology be included in every satellite radio sold."

Right, we need junk HD receivers in satellite receivers which are already having a hard time, talk about kicking someone when they're down. No one in his right mind would want his product linked with a loser like HD, it will sink anything it's associated with on it's quick descent into oblivion. Of course INiquity is trying to salvage whatever money they can get from IBOC before it completely goes down the drain including ruining other, better forms of radio and then talking the money and running. I guess a License is a ticket to big bucks even if what you license doesn't work.

Post a comment

(or continue the conversation in the Orbitcast Forums)





Copyright © 2008 Orbitcast Media, LLC.