Interoperability Problems Loom for XM-Sirius, NAB Tells FCC
XM and Sirius wrongly claim they will be able to offer interoperable radios to subscribers if their merger is approved, the National Association of Broadcasters said. “The two… systems employ different RF frequencies, bandwidths, transport stream packet structures and, most significantly, different audio codecs,” said the engineering study, funded by NAB and written by Meintel, Sgrignoli, & Wallace. Lack of radios that can receive both satellite signals is among issues before regulators as they weigh the proposed merger (CD Apr 19 p2). It also is a sore point in regard to the XM-Sirius proposal on the Hill,
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Differences between the systems make “implementation of a single unified and interoperable receiver both complex and expensive,” the report said. “XM and Sirius have been working in a joint venture to develop an interoperable radio since 2000. At this time, no interoperable radios have been introduced into commercial production,” it said, so “consumers would still need to purchase a new interoperable receiver in order to receive the signals of both providers.”
NAB also fired back Friday at a pro-merger report by former FCC Commissioner Harold Furchtgott-Roth, who argued that from an economic standpoint the merger is not anti- competitive (CD Jun 28 p5). XM and Sirius paid for his analysis.
NAB resubmitted an April economic analysis by Fordham University economist Philip Napoli, who said a merger of XM and Sirius would create a monopsony, with only one remaining buyer for many forms of national audio programming. One regulatory attorney said economically focused analyses like those by Furchtgott-Roth and Napoli play an important role in the process. “You have some situations where you can punt on a decision,” the attorney said. “On XM-Sirius you have to make a decision. You have to decide if there are these types of effects.” The reports will be read and considered carefully, the source said.