[IRCA] Requiring HD in Sat Receivers

["Tim Kridel" <tim@xxxxxxxxxxxxx>]

From: SkyREPORT [mailto:skyreport@xxxxxxxxxxxxxxxx] 

Sent: Thursday, January 03, 2008 2:01 AM

Subject: SkyREPORT 01/03/2008 - iBiquity Takes On Satellite Radio Merger

 

iBiquity Takes On Satellite Radio Merger

 

Should a combined satellite radio entity be required to include technology
from a competing service in its receivers?

 

Last month, iBiquity Digital, known for its HD Radio platform that allows FM
and AM stations to deliver digital-quality audio to listeners, asked the
Federal Communications Commission to consider a condition for the XM/Sirius
merger that would require HD Radio technology to be included in all
satellite radio receivers. It was the latest proposed condition aimed at the
XM/Sirius transaction, which continues to wait for regulatory approval from
the FCC and Justice Department antitrust staff.

 

In a filing sent to the FCC, iBiquity stressed that it has no formal
position on the merger. But the company suggested the condition would ensure
"a level competitive playing field between satellite radio and HD Radio
technology."

 

iBiquity also said a combined satellite radio company should be required to
terminate all exclusive arrangements with current partners and be prohibited
from entering into exclusive deals with suppliers, retailers and automobile
manufacturers in the future.

 

In its FCC filing, iBiquity alleged that the satellite radio companies may
have used subsidies and incentives paid to automobile manufacturers and
their suppliers to discourage proliferation of HD Radio products.

 

The company also said, "A merged entity will have a stronger economic
position and more cash to fund subsidies and incentives. As the sole
provider of satellite services, the merged entity will have greater leverage
over retailers, car manufacturers and suppliers."

 

iBiquity added, "This combined satellite monopoly would be in a better
position to act anti-competitively to exclude HD Radio products."

 

The XM/Sirius merger has been at the FCC for more than 180 days. The
companies first announced plans to combine operations in February.

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