Senators Olympia Snowe, Max Baucus, and Trent Lott, introduced yesterday the "Local Emergency Radio Service Preservation Act of 2006." This lovely bill is pushing to prevent satellite radio from developing receiver technology that lets satellite radio broadcasters offer "localized content" intermixed with national content, "or that would be selected based on the listener’s location."

The bill also requires the FCC to decide whether satellite radio broadcasters can continue to offer "locally oriented services on nationally distributed channels" - meaning the traffic and weather services offered.

Rep Chip Pickering, introduced a similar House version of the bill, H.R. 998, in March 2005. It now has 110 cosponsors.

Last year, SIRIUS Satellite Radio CEO Mel Karmazin reportedly floated the idea that his satellite service might offer local feeds of Howard Stern's show featuring local contests in order to lure national advertising.

In essence, the bill would prevent satellite radio broadcasters from inserting any form of “locally differentiated” content on their ground-based repeaters.

What I don't understand is exactly how having SIRIUS and XM offering localized content is such a harmful thing? During the Hurricane Katrina disastor, local terrestrial radio was disabled in areas affected. But with satellite radio, the "localized content" could have easily reached those in need.

Regardless, the NAB is relishing this move. NAB President/CEO David Rehr said, "It is crystal clear that both XM and Sirius - with nearly $1 billion in combined losses last year and having failed as a national programming service - are skirting the intent of their original FCC licenses."

Ridiculous. 

[more on Billboard Radio Monitor and on Radio World Online]