FCC Chairman Kevin Martin made some interesting comments last week at the "D: All Things Digital" conference that might point us to his thinking about the merger between Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.
The video, which also features Verizon Wireless CEO Lowell McAdam, is a bit long. But you can jump to about 4 minutes into it and where he discusses the topic of broadband networks:
"At the commission you've seen a significant change where prior to my time at the commission, there was an emphasis on wholesale access," said Martin. He explained that the FCC used to mandate that network capacity be sold at a discount to other parties.
"And that was I think was legitimately a concern by some of the carriers that it was depressing their investment in the networks," Martin continued. "So we removed those obligations."
"We are concerned about depressing investment," added Martin. "But we're also going to put limitations in the ability to use that network to choke innovation."
On his first point, it's important to see that Martin notes the importance of the investment in the network. If he's thinking the same way regarding the spectrum XM and Sirius have spent billions creating infrastructure for, then there's little chance he would agree with Georgetown Partners' proposal.
But his last point might bode well for U.S. Electronics and other advocate of an Open Access requirement.
Thanks Jerry!
I think you are ignoring the basic reality of the FCC--they rule in favor of power. The wireless cos, the cable cos, NAB, etc all have power. Sat rad has much less power. They are not consistent and never care about the public as shown by decades of ruling against cable and phone competition and thus costing consumers many tens of billions. So you are trying to tease to much out of this stuff.
I think you are ignoring the basic reality of the FCC--they rule in favor of power. The wireless cos, the cable cos, NAB, etc all have power. Sat rad has much less power. They are not consistent and never care about the public as shown by decades of ruling against cable and phone competition and thus costing consumers many tens of billions. So you are trying to tease to much out of this stuff.
I'm droopy
You're doing a great job, Kevin.
I bet Walt Mossberg had to take a shower after that event.
"If"
Lots of "If" to be reading anything into that. The answer will come when it comes. Kevin continue to do your JOBS at the FCC. It's only a few sheep which think "merge" is a good idea.
Only faggots write merge in quotes.
I read into the last comment differently. I see this as saying that they will limit that access in order to prevent innovation from being choked. This would directly apply to this merger, since divestiture of spectrum would choke innovation in the medium. Sirius/XM intend to do more with the spectrum that just offer radio services.
Kevin Martin is ok.. he can speak... seems able to breathe... let's go and get this done now, whaddaya say hu?? either way.... remember back in March when they were getting drafts set for the decision??? has the copier gone on the fritz?? do ya need a repair man??
"This would directly apply to this merger, since divestiture of spectrum would choke innovation in the medium."
He's mainly referring to networks run by wireless providers. The 'choking' he is referring to is the fact that device A can't be used with network B. In other words, you can't take something like an iPhone and use it on a non ATT network (unless you hack it). That limits innovation in the market for the devices.
So, while really not that pertinent whatsoever to XM/Sirius, if you were to try to extrapolate some type of nugget from that it would definitely be that the delivery methods that XM and Sirius use shouldn't be messed with. However there should be more innovation allowed for the devices. That, of course, would only really be done by open access. Whether that is subsidized or not by XM and Sirius is more of the question.
So really what Ryan wrote is the interpretation I would agree with, but only if you're desperate to get something out of it because he's toalking about something totally different.
He has time for this but not for woprking on the merger.
If the man had any credibility left, he may be worth listening to ... but as it stands, he has none. Just wrote my Senator again asking him to push for Browine's dismissal.
Tell me something Martin has done well people?
Pivotal. I like it. Great post.
He has time for this but not for working on the merger.
Martins take on this merger is most likely this:
Merger approved- new co. will have only 1 lic. and will keep most of spectrum (INVESTMENT)
3 Fcc commsr. favor
2 say nay
cede some spectrum, issue 2nd license for this spectrum, allow for other cos. to make satellite receivers (INNOVATION)
CEDED SPECTRUM WILL BE FREE and ad based. (ACCESS)
INNOVATION, INVESTMENT AND ACCESS.......THOSE ARE THE KEY WORDS
This guy looks like a Republican weasel
Based upon that little Clip, I am assuming it is a safe bet that open access will be required in the merger and no spectrum will be given away.