Luis G. Fortuño

As the first anniversary of the proposed merger of XM and Sirius satellite radio approaches, critics and opponents of the union continue to weigh in with the Federal Communications Commission. This week's commenters included the Commonwealth of Puerto Rico's sole representative in Congress, and iBiquity HD radio.

When the FCC created the Digital Satellite Radio service in 1997, it did not require coverage for Puerto Rico's four million residents, Representative Luis G. Fortuño noted in his letter to the Commission sent on Friday, January 18th.

"My official position is to oppose the merger until such time that the exclusion of Puerto Rico and other noncontiguous United States jurisdictions from coverage area of satellite radio service ceases," Fortuño's statement concludes. "My interest and concern include providing equal access to this technology to all U.S. citizens and encouraging industries doing business in the mainland to extend their services to the Puerto Rican market."

Two days earlier, Robert Struble, CEO of the iBiquity Digital Corporation, met with FCC Commissioner Robert McDowell and his top staff to outline iBiquity's concerns about the proposed merger. "iBiquity indicated that a combined XM/Sirius could be in a better position to hamper iBiquity's ability to introduce HD Radio(TM) technology into the marketplace," the company's January 16th filing explains.

HD technology allows radio stations to broadcast both digital and analog quality sound. In 2002 the FCC approved HD radio as the standard means for digital/analog radio broadcasting.

Some auto manufacturers, such as Ford, have begun offering HD Radio receivers in their newest models. But Struble told McDowell that XM and Sirius may have discouraged further HD expansion through deals with various car makers.

"As the sole provider of satellite services, the merged entity will have greater leverage over retailers, car manufacturers and supplies," Struble and his attorney Robert A. Mazer warned. "This combined satellite monopoly would be in a better position to act anti-competitively to exclude HD Radio products."

Struble and Mazer claim that iBiquity does not take a formal stand on the proposed XM/Sirius merger. Their statement asks the FCC to—in the event of a merger approval—require the new entity to include HD Radio technology in their satellite receivers and to abstain from setting up exclusive arrangements with the auto industry.

XM and Sirius announced their plan to merge on February 19th of last year. The union would require FCC and Department of Justice approval, neither of which has been forthcoming. Many observers expected a decision from both agencies late last year.