FCC approves radio monopoly
This past Friday the Federal Communications Commission approved the merger of XM and Sirrius satellite radio services. The FCC is the government agency in charge of the regulating the public airwaves, which both services use.
Other groups, who are also regulated by the FCC found this merger to one that is not in the public interest. NPR said in a statement, “The FCC’s approval of the merger of Sirius and XM undermines public radio and, in turn, the public’s access to our services. While NPR, other public radio producers and public radio stations have had long and mutually-beneficial relationships with both companies, this new monopoly – wielding unprecedented control over spectrum and without the mitigating conditions we sought – will limit the public service mission of public radio and dilute the significant investment our community, our audience and Congress have made in HD radio technology. The public interest is not being served in this decision.”
For many years local terrestrial broadcasters have been progressing toward HD Radio technology, which was meant to compete with the two services. The advantages of the HD broadcast is that the programming would still be developed for a local audience by local broadcasters. The satellite services, by the nature of their delivery system, never do that.
Many terrestrial broadcasters cite the need to serve their local community, as part of their FCC license. Back in the early 90s when the FCC first approved the use of the satellite radio services, this was not part of the plan. One of the reasons why the FCC did approve the two services was so that there was no monopoly. Now ten years later the tune has changed in Washington.
Over the past ten years the two companies spent billions of dollars acquiring the technology and talent to compete with one another. In arguments to the commission, both XM and Sirrius mentioned how they are low in funds and no longer go forward with their operations in the black.
Opinion:
If paying for radio wasn’t enough reason to not get Sirrius or XM, perhaps now the fact that there is a monopoly would help change peoples’ mind.