![]() |
Home About Blog on this site! Contact LLFCC History 10B History 110F Join the LLFCC listserv Login/Register Search |
Thu, May 15, 9:54pm
|
A nervous commentary on the XM/Sirius merger - from Toyota
by Matthew Lasar Jul 19 2007 - 6:51pm Satellite radio
Toyota Motor North America, which offers both XM and Sirius satellite radio with its cars, endorsed the proposed merger of the two services in a statement filed with the Federal Communications Commission. Maybe. Sort of. "Toyota's primary concern is that the merger not threaten the continued viability of equipment already installed in vehicles, or require excessive and time consuming investments in developing and deploying new hardware," the corporation wrote to the FCC on July 9th. "However, if compatibility with installed hardware can be maintained, customer choice enhanced, and prices lowered due to efficiencies, the merger may be in the best interest of the consumer." The filing expresses hope that the two radio satellite services will continue to operate, given the number of customers who have bought one or the other for their Toyota, Lexus, or Scion vehicle. "Toyota is particularly concerned that the expectations of customers who have already purchased a Toyota vehicle equipped with satellite radio be satisfied going forward," the corporation's comment explains. The filing also observes, as have other commenters, that even if XM and Sirius merge, the development of an interoperable receiver—that is, a receiver that accesses both XM and Sirius programming—could be difficult and expensive. "Toyota would be concerned if the expense of such development were to result in an increase in the price of exiting services or hardware." Finally, the statement notes that Toyota has invested quite a lot of money in inventories of XM satellite receiver parts, head-units, and antennaes. "If the merger requires changes to operations of inventories, this could increase Toyota's costs to the detriment of Toyota and its customers." Otherwise, go for it. Other XM Sirius comments: The National Association for the Advancement of Colored People (NAACP) has approved the proposed XM/Sirius merger. The organization's comments laud both services for their African American oriented music and talk shows "Both companies maintain a strong commitment to diversity and utilize significant resources to recruit and retain minority talent and leadership at all levels, from entry level to senior management as well as a commitment to a racially and ethnically diverse Board of Directors and diversity in contracting and vendors," the groups' June 20th FCC filing concludes. "We have no doubt that a merged satellite radio company would continue, and, in fact, strengthen its commitment to diversity in employee recruitment and retention, while expanding its pool of diverse contractors and vendors." But James C. Miller III, former Chair of the Federal Trade Commission, filed in opposition to the union. Miller's July 17th comments responded to the arguments of pro-merger groups, who posit that because satellite radio represents a "luxury service" and not a public utility, the proposed marriage has no public interest implications. Miller, now a consultant for the fiercely anti-merger National Association of Broadcasters, disagrees:
Reply |
|
LLFCC (Lasar's Letter on the FCC); copyright 2005, 2006, 2007.
Please feel free to post these articles on your site or whatever because you'll do it anyway. Don't forget to credit the author and link to the site. Ideally you will post part of the article and add a link to the rest. |