Satellite services consulting firm Telecom, Media and Finance Associates, Inc. (TMF Associates) has come out against the NAB-backed Carmel Group whitepaper.

TMF analyzed the positions taken by Carmel Group and concluded that this white paper "ludicrously overstates the case for opposing the merger of XM and Sirius and fundamentally misinterprets the competitive environment for satellite radio."

Note that TMF Associates performed this study independent of Sirius or XM, and was not commissioned by any related parties. TMF goes to great lengths to ensure that they have no financial interest in the final outcome of the proposed merger.

"Satellite radio is essentially a car-based audio service at present, so the primary alternative for consumers is free-to-air AM and FM radio, supplemented by the playback of pre-recorded music such as CDs," Tim Farrar wrote in the note.

"Carmel Group's assertion that MP3 players are not even relevant to today's in-car audio market is quite simply bizarre," he added.

The TMF study brings up some very interesting concepts, aside from lambasting the Carmel Group's "findings" in their whitepaper. (Note to Tim, you should expect a nasty email from Jimmy Schaeffler shortly - I received one on Friday.) TMF brings up a scenario of a "common technical standard" for satellite radio as being a result of the merger - allowing for spectrum to be allocated for use by new entrants to the market (or even by broadcast services for cellular networks).

I'm glad to see other groups standing up to the NAB's propaganda attempts. And on top of that, Farrar actually brings some intriguing concepts to the table with this report. Great job, and highly recommended reading.

[Read the TMF Associates Report (PDF)]