An interesting filing against the proposed XM/Sirius merger from one of the oldest civil rights groups in the United States, the National Council of Negro Women (NCNW). The January 24th statement goes against the tendency of minority advocacy groups to support the union, lauding either XM or Sirius for their niche programming. Not NCNW. They call the merger "a clear, present and unmitigated threat to decency and greater diversity of media ownership."

They continue:

"One only has to evaluate the current programming now offered by Sirius and XM to recognize that our concerns and fears are well founded. Programming such as Howard Stern, Opie and Anthony, and Bubba the Love Sponge—which help to perpetuate racist and sexist stereotypes in our culture—drive the business of both companies. A Sirius - XM satellite radio monopoly will focus its resources on only its most profitable audiences, which more of the same lower common-denominator programming of the Howard Stern variety. Yet the audiences of those shows do not reflect the broader spectrum of the American listening public. It is imperative that satellite radio exists for all of the public, and not simply to put profits in the pockets of the combined Sirius and XM."

NCNW says they support the Georgetown Partners proposal resubmitted to the FCC yesterday. To wit:

Georgetown proposes that Sirius and XM restructure the merger and lease to Georgetown their broadcast infrastructure and at least 20% of the combined entity’s capacity on a long term or permanent basis. Georgetown, a minority-controlled company, would use the capacity to offer free, family-friendly, non-subscription-based programming with limited commercials. Further, Georgetown would do so in full compliance with the FCC’s terrestrial broadcast regulations governing indecent programming that Sirius and XM avoid by their non-broadcast subscription status. Restructuring the merger as proposed by Georgetown assures competition. It is the only proposal that promotes the public interest and provides consumers true benefits on a sustainable basis.

Georgetown’s proposal requires the combined Sirius-XM to carry Georgetown’s advertiser-supported programming to everyone with a satellite radio receiver – subscriber or not. The result would be immediate, continuing and permanent tangible benefit to the public. By contrast, under the Sirius-XM “A La Carte” proposal, millions of consumers who have recently purchased new satellite radios and who want to choose the content they receive would be disenfranchised unless they purchase the next-generation satellite radios – but the next-generation radios are not available now and won’t be any time in the foreseeable future. Of the more than 30 million receivers in the market today, already some 15 million are owned by consumers who neither subscribe to Sirius nor XM. Georgetown’s proposal offers these non-subscribers an opportunity to obtain substantial benefit from the money they paid for their radios. Georgetown offers a home to the disenfranchised and a use for the millions of expensive unused receivers. Subscribers of the combined company and non-subscribers alike would receive Georgetown’s free programming. The result would be greater options in the marketplace for all consumers.

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."

 Apparently it wasn't enough for National Public Radio (NPR) to file lengthy opposition statements in July and August with the Federal Communications Commission against the proposed XM/Sirius merger. On Wednesday, September 12th, an NPR Vice President met with assistants to three FCC Commissioners to reiterate public radio's call for a veto on the union of the two satellite radio services.

NPR's Mike Riksen told FCC staffers that "the SDARS [Satellite Digital Audio Radio service] market safeguard is a rule prohibiting the merger of the only two SDARS providers [XM and Sirius] and that it should neither be waived nor modified in this case."

What this means in non-eye glazing English is when the FCC authorized the SDARS service in 1997, the agency added a proviso that no single entity should be allowed to control all the allocated spectrum. NPR wants the FCC to stand fast to that rule.

The question is why National Public Radio , which doesn't file with the FCC all that much, has become so adamant and aggressive about this issue? NPR has offered a variety of arguments against the merger. LLFCC finds most convincing among them the fear that a united XM/Sirius will put it at a disadvantage on the satellite platform.

XM and Sirius yesterday submitted  to the Federal Communications Commission a recent interview that Sirius CEO Mel Karmazin did with Neil Cavuto of Fox News. The filing was part of the proceeding on the proposed XM/Sirius merger.

Among the discussion's revelations: Karmazin acknowledged that a merged XM/Sirius might just put Don Imus on the payroll, and not as a janitor either:

"I think I would have to know a little bit about what Don Imus wanted to do at this point in his career and what his vision is," Karmazin confided. "But you know, the fact that he had been fired, OK, would not stop me from having Don work for me again. He makes you a lot of money."

Here's the transcript of the August 7th edition of "Your World With Neil Cavuto," filed by XM/Sirius to the FCC.

NEIL CAVUTO, HOST: In the meantime, fears of deals drying up on Wall Street today more to do with Congress than a credit crunch? Democrats using the word "antitrust" a lot more lately. My next guest recently appeared on Capitol Hill to defend a pretty big deal he has been trying to get done. With us now, an exclusive chat, is Mel Karmazin. Mel is the CEO of Sirius Satellite Radio, which is trying to merge with XM. Mel, very good to have you.

National Public Radio has asked the Federal Communications Commission not to approve the proposed merger of XM and Sirius radio, a move that would require the FCC to waiver its anti-monopoly language for satellite audio.

"While the Commission possesses the authority to waive its rules," NPR attorneys conceded in their August 10th filing, "we do not think it can or should do so here. A waiver is appropriate in particular circumstances when application of the rule would produce harsh results."

NPR contends that neither XM or Sirius are harmed by the restriction, included in the FCC's original Order creating a Digital Audio Radio Satellite service (DARS or SDARS):

"Even after DARS licenses are granted, one licensee will not be permitted to acquire control of the other remaining satellite DARS license," the agency's 1997 authorization declared. "This prohibition on transfer of control will help assure sufficient continuing competition in the provision of satellite DARS service."

NPR says a waiver is not justified because:

• Both services have exceeded expectations. "That success is directly attributable to competition between the Applicants, which has resulted in a significant expansion of SDARS channel capacity, an incomparable array of program offerings, and an impressive consumer response," NPR writes.
• Although, as XM and Sirius argue, the marketplace now offers competitive new options like MP3 players, this is nothing new. For years terrestrial radio has faced challenges such as CD players. "On balance, then, while circumstances have changed to some degree since the initiation of SDARS, those changes reflect the continuing evolution of communications and consumer electronics rather than a fundamental marketplace shift." XM and Sirius do not need merger relief for conditions that have always prevailed in one form or another.
• XM and Sirius have not assured the FCC that their proposed merged pricing schedules will survive in the long run. Although they have promised affordable monthly rates and "a la carte" packages for consumers after they merge, NPR notes that their filings warn that "[t]he companies do not have a predetermined time period during which the new prices will remain in effect."
  " The net result," NPR concludes, "is a set of promises of dubious consumer benefit and no enduring substance or duration."

Ironically, like Clear Channel Communications, also opposed to the merger, NPR offers programming on several Sirius channels. "NPR's member stations are, themselves, both producers of noncommercial educational programming and suppliers of programming to the SDARS market," the radio services' filing notes.

NPR submitted their comments about two weeks after the formal conclusion of the FCC's comment period on the XM/Sirius merger.

Things got nasty on the last day of the Federal Communications Commission's proceeding on the XM/Sirius merger, but about something even more contentious than the proposed union: digital audio copyright rules.

The Home Recording Rights Coalition (HRRC) has nothing to say about the possible marriage of XM and Sirius, their July 24th filing confesses, but they sent comments to the FCC anyway to respond to the "the ill-considered and outrageous proposal" of the Recording Industry Association of America (RIAA), submitted two weeks earlier.

The RIAA trade group represents the U.S. recording industry. In its filing, RIAA argued that "a key condition of the merger" should be to "foreclose" XM and Sirius from asking for "below market royalty rates" for recording copyright licenses.

The Digital Millenium Copyright Act of 1998 required all satellite radio companies to purchase licenses for sound recordings from record companies—in addition to licenses from composition copyright owners. XM and Sirius have asked for lower recording royalty rates, citing their underdog status in the broadcasting industry.

"RIAA believes that XM and Sirius are no longer new, struggling companies and should be paying market rates for such compulsory copyright licenses at present," the trade group writes, "but certainly, XM and Sirius should not be allowed to argue for less-than-market compulsory rates after a merger."

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.