The spectrum poaching continues...
The increased level of merger-related activity over at the FCC continues, now with a series of meetings held by the Media Access Project/Prometheus Radio Project.
The Prometheus Radio Project, a non-profit founded by a small group of radio activists, is joined by the Media Access Project, is a non-profit law firm that pursues "the public’s First Amendment right to hear and be heard on the electronic media." They have objected to the merger since June (PDF).
The two have increasingly been engaging the FCC in meetings, urging for denial of the merger - or the placement of restrictions should the merger be approved.
In their most recent meetings, the Media Access Project and Prometheus Radio Project met with representatives for Commissioners Copps, Adelstein and McDowell - in the past two days.
So what conditions would these two non-profit groups want imposed? Simply said: they want 50% of Sirius-XM spectrum to be stripped away.
"...the Commission has already determined that 12.5 MHz is sufficient for an economically viable SDARS system, thus the Commission should make other uses of the excess capacity," wrote the Media Access Project.
"Specifically, the Commission should: (1) create a set-aside for non-commercial educational programming; (2) require the combined entity to lease capacity to unaffiliated commercial programmers; or (3) require the excess capacity to be returned for auction."
...and you thought Georgetown Partners' demands of 20% of spectrum were bad?
[FCC Filing: 1 (PDF), 2 (PDF)]

Comments
The FCC originally was offering 50 MHz and 4 licenses until it was decided that only 25 MHz and two licenses would be offered. Why the heck can't the FCC just auction off another block of 25 or two blocks of 12.5? This is getting ridiculous!
Posted by: Frustrated with the nonsense | February 8, 2008 1:52 PM
Based on a lot of the comments on these boards, it seems like it would not be realistic to give up a lot of the spectrum right away because of the fact that there is XM and SIRI radios out there right now that would not work off of each others signals. Assuming radios would integrate over time, I wonder if they will settle on agreeing to phase out the spectrum over time. That way SIRI and XM could agree to phase out the spectrum, get the deal done now, and ignore the requirement the way they ignored the fact that they would make interoperable radios. I'm sorry, they didn't ignore it, Mel has one in his office, its just too expensive for everyone else.
Posted by: Jon | February 8, 2008 2:07 PM
This is BEYOND ridiculous. After going through hell about the merger for over a year...NOW we have to potentially put up with these spectrum grubbing mutants.
Sirius shareholders deserve a much needed break from all the a$$holes out there.
Grant the damn merger already...AND with NO restrictions or spectrum stealing!
Posted by: regan | February 8, 2008 2:07 PM
Based on a lot of the comments on these boards, it seems like it would not be realistic to give up a lot of the spectrum right away because of the fact that there is XM and SIRI radios out there right now that would not work off of each others signals. Assuming radios would integrate over time, I wonder if they will settle on agreeing to phase out the spectrum over time. That way SIRI and XM could agree to phase out the spectrum, get the deal done now, and ignore the requirement the way they ignored the fact that they would make interoperable radios. I'm sorry, they didn't ignore it, Mel has one in his office, its just too expensive for everyone else.
Posted by: Jon | February 8, 2008 2:16 PM
They ought to have known going into this merger that it would open up a Pandora's box of people and organizations claiming something is owed them. Trad rad stations go through this at license renewal time every few years. Welcome to the real world - this merger was NEVER going to be a smooth skate to the finish line.
Posted by: Anonymous Coward | February 8, 2008 2:34 PM
Even a combined Sirius/XM isn't going to have *that* many more channels. They'll add enough to add sports, etc., and that's it.
The only thing that spectrum poaching will do is continue to force Sirius to program with LOW BIT RATES and BAD AUDIO QUALITY. Having additional spectrum won't add many channels, but it will allow Sirius to IMPROVE AUDIO QUALITY and offer more competitive offerings, like TV.
The FCC should take this opportunity to allow Sirius to have at least the same quality as FM radio, which right now, it does not. Now, it is inferior in sound quality to FM. PLEASE DON'T GIVE IN ON THIS! Keep the spectrum; you'll never get it back!!!!
Posted by: Mat | February 8, 2008 2:40 PM
Bleeding heart liberals ..its about time for attorney jokes....Welcome to America...
Probably supported by the ACLU..
Posted by: n2deep | February 8, 2008 2:44 PM
its a wonderful idea
think about it, its a great way to take someone already hurting and kick them while they are down
approve the merger, make them give up 1/2 the spectrum....force them to have to give free radio replacements to 8-11m people....decrease how many channels they can have.
see they know that a combine company savings is HUGE...why not cut that number down substancially if there is no chance of stopping the merger.
Posted by: PNess | February 8, 2008 2:53 PM
>>> I wonder if they will settle on agreeing to phase out the spectrum over time.
IMO, this is a very reasonable approach to the problem.
It makes zero sense to have all the spectrum in the hands of a monopoly -- but, it would be unworkable for XM/SIRI to give up spectrum right away. A phased transition under which a portion of the spectrum is handed off (or re-auctioned) to third parties over time would be a totally reasonable requirement for FCC to impose. Under no circumstances should XM/SIRI be allowed to keep all of the spectrum they now have, post-merger. If XM/SIRI want to recover some costs of their infrastructure via leasing it out, they should have the option (although, I can't see why they should be compelled to do so)...
Not that I think there is a chance in hell of FCC doing anything like this. But it would be a way to allow the merger without destroying the industry with a de facto monopoly.
Posted by: Stack Pointer | February 8, 2008 2:56 PM
The companies PAID for that spectrum space. It was not licensed. It is owned by them, and not free to be taken away.
Further, the merger agreement states that it will not go forward if nmay spectrum space is to be reliquished.
Posted by: The Enlightener | February 8, 2008 3:14 PM
Maybe they can offer up further concessions like some sort of decency standards the government can oversee too. This merger sucks ass and should be denied.
Posted by: pfreak | February 8, 2008 3:17 PM
>> The companies PAID for that spectrum space. It was not licensed. It is owned by them, and not free to be taken away.
The licenses were granted subject to a requirement that the two licenses cannot be held by the same entity. If they want the [substantial] benefits of a monopoly, FCC can damned well say, "Hey, we'll modify the terms under which you received your license, if you'll agree to give up spectrum".
Nobody is talking about "taking away" spectrum if they companies want to abide by the terms under which they received it. The companies are wanting to alter those terms, and there is absolutely no reason they should be allowed to do so without giving SOMETHING up -- spectrum, money, whatever -- this stuff is precious as is the agreement under which it is taken subject to. IF they want more favorable terms than the original agreement provides, they must be ready to pay for that benefit.
>>> Further, the merger agreement states that it will not go forward if nmay spectrum space is to be reliquished.
Unless it would require another shareholder vote, there is nothing to stand in the way of the parties just modifying the merger agreement -- so long as it doesn't upset the cart with DOJ or FCC.
Posted by: Stack Pointer | February 8, 2008 3:23 PM
No wonder the desion is taking so long. This idiots, who all one something should have been making their demands earlier with the general public.
Posted by: mitchan | February 8, 2008 3:34 PM
Kind of like someone saying i did not buy gold at $300 and you should sell it to me for that price now.
Posted by: John | February 8, 2008 3:42 PM
>> Kind of like someone saying i did not buy gold at $300 and you should sell it to me for that price now.
This is a strange interpretation. It is, after all, XM and Sirius who are wanting the sweet deal.
Posted by: Stack Pointer | February 8, 2008 3:57 PM
what ever happened to the idea that the comments period is closed, and let the half-wits at the FCC decide? If you keep trying to placate the cum-sucking special interest groups, then this thing will drag into the next Administration.
heh, who saw that comin', brotherman?
Posted by: teeheejimmy | February 8, 2008 4:08 PM
I would agree half the spectrum should be cut. It should be reserved for a possible competitor to Sirius/XM in the future. If there going to be one it should have the spectrum of one. Which in essence most people would say the merger would suck in that scenario but that seems fair to me. If your going to be one satellite radio company you get the spectrum of one. If that’s such a bad thing simply don’t approve the merger. The other stuff seems unnecessary though.
Posted by: Disturbed Logic | February 8, 2008 4:21 PM
I think the Hollywood writers have found a new script to write while they are on strike.
Just wait and see, within six months of whatever ruling comes out, there is going to be a call for both FCC licensing and the anit-merger process.
Hoo-ray for government, thank goodness you're burning through tens of thousands a day on this process, we don't need that money or effort elsewhere, do we?
Posted by: jmpetersen | February 8, 2008 4:23 PM
I think the Hollywood writers have found a new script to write while they are on strike.
Just wait and see, within six months of whatever ruling comes out, there is going to be a call for both FCC licensing and the anit-merger process reform.
Hoo-ray for government, thank goodness you're burning through tens of thousands a day on this process, we don't need that money or effort elsewhere, do we?
Posted by: jmpetersen | February 8, 2008 4:24 PM
Im Gary, and i demand the FCC award me 62.7% of the spectum or ill oppose the merger--I also demand, to be fair for the public, that i be given my own channel as well as $2 million per year to be used for the "benefit of the public" If this isnt awarded, i strongly oppose the merger
Posted by: Gary | February 8, 2008 4:25 PM
>>> >Im Gary, and i demand the FCC award me 62.7% of the spectum or ill oppose the merger--I also demand, to be fair for the public, that i be given my own channel as well as $2 million per year to be used for the "benefit of the public" If this isnt awarded, i strongly oppose the merger
Gary is missing the point. It isn't that some individual somewhere ought to be awarded the spectrum. The issue is whether ONE company ought to get ALL the spectrum, which would clearly be inconsistent with the FCC's policy of the last 20 years or so. They don't allow CCU to have ALL the FM channels. They don't allow one cell phone company to have ALL the spectrum. Why should they allow one sat radio company to have all THAT spectrum?
Posted by: Stack Pointer | February 8, 2008 5:14 PM
I suspect we have some NAB folks here.
If you clowns think this is such a profitable and easy to start business, why the hell don't you ask for the FCC to offer up some more spectrum?
Maybe Sirius and XM can get some t-rad spectrum to replace any they give up!
Posted by: ANTI NAB | February 8, 2008 5:15 PM
if you were black gary you just might get your wish
Posted by: PNess | February 8, 2008 5:17 PM
the bright side of this for shareholders like mysef is that if there was any doubt about the potential value of sirius and XM, that is now gone in my mind.
I think that the reaction of the FCC and everyone else demonstrates how valuable and powerful satellite radio is.
even though i hear people saying it'll be replaced by something else, the bottom line is no technology can compete with 100% geographical coverage of the continent, and potentially the globe.
...and every vulture out there wants the bandwidth that sirius and xm have.
If the merger doesn't get approved, that won't in my mind make sirius any less profitable an investment. it will only affect short term gains. I believe in satellite radio, not only because i experience the superior product first hand, but also because every powerful organization out there is waiting in the wings to get a piece of the action...
Posted by: trev | February 8, 2008 5:21 PM
Hey Trev!
Ever heard of the internet?
Posted by: ANTI NAB | February 8, 2008 5:25 PM
And another thing! All this garbage of having to give up spectrum 10 years from now or some time in the future! Haven't we learned anything about the history of technology people? Ten years ago, who would of thought these two companies with their super valuable spectrum would need a merger to survive or have profits. I agree with Frustrated that the best solution to satisfy all would be to auction off new spectrum. I'm sure the FCC could use the $$$$$$!!!!!!
Posted by: ANTI NAB | February 8, 2008 5:32 PM
Im my opinion, spectrum battle is now another way to STALL MERGER. As you see they are all jumping on the bandwagon and coming up with "PUBLIC INTEREST" reasons to remove spectrum which is obviously a reason for the companies to break off merger. You don't think they all got together and shared ways to derail merger? And when have you known radio stations to make room for PUBLIC EDUCATION CHANNELS?" They make money with advertising...do you think this spectrum will be kept for educational purposes? If it happened, in a few years those channes, spectrum would be convereted with more lobbying to reduce educ. spectrum. BUYING TIME THAT'S ALL. SIRIUS AND XM KNOW IT THAT IS WHY YOU DON' T HEAR ABOUT THEM MEETING BACK AND FORTH WITH DOJ OR FCC TO REDUCE SPECTRUM.
Posted by: RADIOsucks | February 8, 2008 5:58 PM
I will bet anyone here the NAB is involved. As soon as I heard the word lawyers.
A sweet deal for SIRIUS /XM ???? They paid for what they have and terrestial radio wants to get it free??? Cough up 50 Billion dollars NAB we will give you some spectrum.
I never have ever heard of anyone getting a business handed to them for free worth possibly Billions!!!!!!
Posted by: upNABwazoo | February 8, 2008 9:26 PM
Well, Radio, the representation was made that this merger is supposed to be in the public interest. Evidently other organizations have ideas about what that means. Also, a large portion of the lower end of the FM broadcast band is held aside for non-commercial educational stations. So holding spectrum aside for such purposes is not exactly a new idea.
Posted by: gdiamond | February 9, 2008 10:34 AM
Hey, Anti NAB, ever tried to stream Internet radio to your car? I have and it doesn't work very well. No other service, not even the might intertubes can let me listen to one channel from my home to Florida and back, about 1,100 miles. None.
Wi-Max MAY be the answer, but satellite radio is here now while Wi_max is nowhere.
And to those saying "auction of another 25". There is no other 25 Mhz if you look at the spectrum chart. There was originally 50 Mhz set aside, but there doesn't appear to be an open block. I have read comments elsewhere that the other 25 Mhz of spectrum were auctioned off for other uses.
Posted by: dualsub2006 | February 11, 2008 8:19 AM
In response to some of the comments before:
The FCC can't just put some more spectrum up for auction; it is all used up.
Posted by: Sam | February 11, 2008 9:58 AM