State AGs have found the answer: Free Satellite Radio!

Friday, April 25, 2008 at 11:36 AM
Tags: 6, XM
XM / SiriusAttorneys General from Maryland, Connecticut, Ohio and Washington - who all greatly oppose the Sirius-XM merger - feel they have found the answer to preserving competition in satellite radio: offer it for free.

This revelation was uncovered in a recent letter (PDF) to FCC Chairman Kevin Martin, where the state Attorneys General suggest that the Federal Communications Commission lease a portion of Sirius and XM's bandwidth to a 3rd party. And that leased portion, should be made available, for free.

Does this plan sound familiar?

Radio & Records nicely sums it up for us, "the only entity that has made a pitch to lease satellite spectrum from a combined Sirius-XM is Georgetown Partners."

R&R adds that should the deal win approval, Georgetown Partners "would be willing to take a long lease on the spectrum and form a free, commercial-based satellite radio company," which it promises "will be richly diverse."

It's so nice to see these AGs coming to the rescue.

[View letter (PDF) via Radio & Records]
Thanks Nathan!


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Comments

this whole thing is insane! we have to sit here while these greedy people do all they can to steal from these companies.

I wish there were at least 3 men/women of integerity on the committee who will do what is right and approve the merger without conditions.

The FCC should be ashamed of themselves...but us normal citizens can't do anything about it...disgusting!!!!!

Commercial based? Thats a poor idea at best. We already have that kind of radio service and we don't even have to buy a radio just to receive it. Although the service is free, the radio will not be and who is going to put out the money to get more "Clear Channel" like crapola...

Commercial based? Thats a poor idea at best. We already have that kind of radio service and we don't even have to buy a radio just to receive it. Although the service is free, the radio will not be and who is going to put out the money to get more "Clear Channel" like crapola...

You all can thank Mel and Gary for this mess.

arn't O&A giving away there "talent" for free already?

Just when you think you've heard it ALL!

Lol. Why don't you just kill both companies now and get it over with?

If the government is so into letting the free market decide, why don't these special interest groups raise their own money and launch their own damn satellites?

I mean come on. They want to ride for free on the backs of Sirius and XM to basically start their own business. This has NOTHING to do with bringing "diverse" programing to minorities. (which XM and SIrius already do!)....this is about money pure and simple. And while these special interest groups want their free handouts, the FCC is being bribed by the NAB.

The whole thing is insane.

Mel Karmazin must be ABSOLUTELY LOSING his cool.

I know why he has to bite his tongue...but I REALLY can't wait for him to be able to speak freely about this.

I do wonder why we haven't heard much from Mel. It seems that if bad things were happening, he would be ourspoken about his grievences. He's not the type of man who would just sit back without a fight. He would make sure he had all the investors and whomever else he needed on his side to fight.

My summation is that the FCC already told them what they have decided and the conditions, if any :) , and now the FCC is meeting with all these people to let them down easy so they won't have a fit when the announcement comes out. If these people let it out early, the FCC will know who to blame and can use that to keep from having to deal with them again in the future. I think letting these people know ahead of time is a smart move by the FCC

Oh...trust me....he WANTS to speak.

But the fact that he isn't means to me that the deal is done. They are just squabbling over the "concessions".

If something goes wrong or the negotiations break down...then all bets are off...I think Mel unleashes holy hell upon the FCC.

But until then, he will wait until AFTER the deal is done. Then you will see him all over the tv, on Cramer on CNBC...but it will be a positive Mel. He will focus on all the upside of the merger and I am sure he has plenty of deals lined up to announce. After all, they've been preparing for over a year now.

HOWEVER...if there is more delay or the FCC suddenly adds an INSANE concession...you will see ANGRY Mel. Lawsuits will be filed and it will get nasty.

THE FCC SHOULD BE DRAGGED OUT IN HANDCUFFS FOR TAKING BRIBES FROM THE NAB

THE FCC SHOULD BE DRAGGED OUT IN HANDCUFFS FOR TAKING BRIBES FROM THE NAB

How about a Free Government ?? One where we don't have to pay TAXES ?

How about FREE Gasoline ? So I can drive to work every day to work so I can PAY my taxes to pay for the salaries of these politicians ?

In fact, that kind of thinking (free satellite) is EXACTLY why we have a national debt that grows exponentially EVERY day.

Fiscally irresponsible AHOLE.

Satellite radio was once a great thing, but now all of this stupidity is killing it. Mark my words, internet radio will be the next great thing with Wimax coming out satellite radio will be dead.

I think the Spectrum leasing could be a good thing for Sirius as long as the
amount of Spectrum is minimal.

I'm sure it's safe to say there's a percentage of current Spectrum usage which
is not contributing to the bottom line. Eliminate the channels and lease that Spectrum
back to whoever the FCC allows.


Marc Dann? Now there's a real stand up guy in Public Office...

lololol ummmmmmm, what idiots!!!!!!
I bet most of these guys recieved some NAB funds recently. Maybe the FBI could stop what they are doing and investigate the NAB for meddling with the government.

FBI busts NAB (and Clear Channel) for illegal money laundering .... That would be the best !

See David Rehr, getting hauled out iby Federal Agents in handcuffs with all of his laptops and files ... that would be the best !!!

That's S***! If Sat radio is FREE. The the revenue has to come from somewhere. That means AD supported radio. So instead of AM/FM sucking then national radio would suck also! Great plan!! Stupid!!

Why are they beating the "competition" drum? The DOJ has already ruled on that. This ploy is a Trojan Horse for particular entities to find a piece of the SatRad cake because they know the money will be good. What a joke - hiding behind the banner argument of "competition and fairness to the consumer" when what they really want is to make an assload of advertising dollars.

>>They want to ride for free on the backs of Sirius and XM to basically start their own business.

It is XM and SIRI who are trying to get a "free ride" to an unregulated monopoly.

Obviously, going to an ad-supported model should be something that XM and Sirius choose to do, not a decision regulators should make for them.

But everyone needs to remember that it is XM and Sirius who are asking to terminate their previous agreement unilaterally in exchange for a different agreement that is far more favorable to them and less favorable to consumers.

WL
if they open that can of worms, there will be no end to it.

"FREE" SatRad is a contradiction in terms. Sirius and XM set themselves apart by being a PAID SUB service with quality content and NO commercials. That's why people PAY for it; they WANT the quality content with no commercials. That's why they abandoned FREE am/fm radio. Siri-XM should be able to keep the spectrum they paid millions for, even if they merge. Let the AGs and GP pay millions if they want some spectrum. They shouldn't get it for free or next to nothing. They are just trying to piggy-back ride this thing after Siri-XM have made all the hard work and sacrifices. Carpetbaggers.


It sounds great...Free SatRad but like others mentioned SatRad would be destroyed. I'm repeating here but it would all be ads and it would fail. I have to say that since this whole merger thing has been going on it's be nothing but changes for the worse that might take place. Nothing has happened yet but it all leaves a bad taste in your mouth.

Stack Pointer....I have to TOTALLY disagree with you. The deal favors the companies sure....but only in that WITHOUT the merger XM is going bankrupt!

I mean come on. They will BEND OVER BACKWARDS to favor the consumer. The prices will be LESS with the merger. Sure it helps the companies, and as an investor I am biased. But I'm also a consumer...and Sat Rad competes with FREE radio not to mention emerging technologies. They have to do EVERYTHING they can to KEEP subscribers.

People will simply CANCEL their subscriptions if they try to raise prices too much. Why can't some of you SEE that simple logic.

They are NOT a monopoly when you look at the broad sector they are competing with. They are just but one TYPE,

Regan, just wondering. How much of an increase would cause you to cancel? Would you cancel if they raised prices by 5% to $13.65, or 10% to $14.40, or something similar happened to whatever kind of plan you have? Three years ago XM raised its prices almost 30% still increased its subscriber numbers by millions over the next year, which would seem to imply that satrad customers don't really see any good alternative to what they can get from XM or Sirius. Maybe that's changed a bit since early 2005, but maybe not too much. Sure you can hear music online or on the radio, but unless you know another place to get MLB, Stern, O&A, and all the other shows on satrad, or even something remotely similar that I don't, it doesn't seem like there's really another true competitor out there.

Free satellite radio even with commercials will canibalize Mergco's subscription model. Mergco will then be forced to an all commercial model themselves. The solution is to just let Georgetown have a couple of the channels as suggested by Gigi Sohn of Public Knowledge and be done with it. Sirius will open themselves up to one hell of a shareholder lawsuit if they accept a deal to surrender spectrum to Georgetown or anyone for that matter.

>>> but only in that WITHOUT the merger XM is going bankrupt!

I doubt either would go bankrupt without the merger, at least anytime soon. But you seem pretty confused about the relative financial health of the two companies.

Mel is getting EXACTLY what he is due for trying to form a "merge" aka MONOPOLY. If the blind, ignorant, satrad fanboys had a brain in their heads they woud get a clue that satrad as we have currently is MUCH better than what is being promised in a "merged" MONOPOLY in satrad.

Mel tried pulling a fast one to cash out of a satrad industry which has never made money and is in a rapid decline, knowing blind, ignorant, satrad fanboy's would take the bait HOOK, LINE, and SINKER.

HDradio here we come, because greed is pounding the nail into satrad.

NO! to "merge" MONOPOLY, it's the only thing which might save satrad.

YES! the truth at last. Gold star to Stack Pointer!

It is XM and SIRI who are trying to get a "free ride" to an unregulated monopoly.

Obviously, going to an ad-supported model should be something that XM and Sirius choose to do, not a decision regulators should make for them.

But everyone needs to remember that it is XM and Sirius who are asking to terminate their previous agreement unilaterally in exchange for a different agreement that is far more favorable to them and less favorable to consumers.

Posted by: Stack Pointer | April 25, 2008 2:28 PM"

regan,

You are in fantasy land dude... Grow up. Name any corporation, much less a corporation desperate for a "merge" MONOPOLY which "BEND OVER BACKWARDS to favor the consumer." Prices are already noted as planned to be HIGHER. Less content, less choice = same or MORE $$$. Satrad directly competes only with themselves. Your post is so full of BS and double talk it's sad. Better turn around since most of your reasoning seems to be coming out of your ass.

great, AC's back to poison the thread with his (redundant, unoriginal) "NO! to "merge" MONOPOLY" bullshit.
AC, you're the one in a group discussion with the bad breath.

p.s. DOJ has already determined that there is no harm to the consumer. the FCC's job is to decide use of licensing and spectrum. "monopoly" is off the table, dipshit.

No to "merge" MONOPOLY in satrad.

Those satellites weren't put up there for free!!
IT IS VERY EXPENSIVE TO BUILD AND RUN THIS SATELLITE SYSTEM THAT IS WHY THE COMPANIES ARE BLEEDING.
THEY TRY TO MERGE IN ORDER TO MAKE THINGS EFFICIENT AND SOMEONE WANTS A PIECE OF IT.
AND THE AGs SUPPORT THAT???
WHAT A SCAM!!
THIS IS LIKE SAYING IF DELTA AND NWS MERGE SOME ORGANISATION DISERVES FREE SEATS ON EVERY FLIGHT!!!

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