[opendtv] Satellite radio
- From: Albert Manfredi <bert22306@xxxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 22 Sep 2007 18:20:50 -0400
What I found interesting in this piece was that in addition to its satellite
transmitters, XM Radio needs, for example, 91 "small sticks" to cover NYC, and
39 small sticks to cover LA. Furthermore, that at least some of these "small
sticks" are tall. They mention one example of a sanctioned 490' antenna height
turning out to have been 900' in fact. I don't know how many of their small
sticks are that tall. Seems to me that many were, they would be more obvious.
Perhaps they are sharing TV towers in some cases?
The article talks about power level and location violations, without mentioning
what the power levels are.
Apparenty, Sirius, with 3 ellyptical orbit satellites, depends less on
terrestrial repeaters than XM, with two satellites in geosynchronous orbits.
The NAB is against the possible merger of these two companies. Best I can tell,
the NAB's concern is that such a monopoly would have so much content buying
power that local stations would be shut out of competition. Although the NAB
also makes arguments which I find puzzling. For example, that such a merger
would reduce innovation and increase prices for satellite radio. Probably true,
but it sounds to me like that would work to the NAB's advantage.
(NAB positions at http://www.nab.org/AM/Template.cfm?Section=Home)
Bert
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http://www.bloomberg.com/apps/news?pid=20601103&sid=azdBm8rw6BmU&refer=news
XM's Rogue Antennas Amplify Signals, Merger Scrutiny (Update2)
By Christopher Stern
April 24 (Bloomberg) -- XM Satellite Radio Holdings Inc. became the nation's
largest satellite broadcaster with a network of hundreds of antennas that were
built and operated in violation of U.S. Federal Communications Commission rules.
At least a third of the 800 antennas that beam XM's radio channels to millions
of customers were placed in unapproved locations or emitted signals that were
too strong, according to a review of FCC filings. XM says some now comply with
the rules, though it doesn't know how many.
The misplaced antennas may result in fines or a shutdown of part of the
company's network. Lawmakers including U.S. Representative Edward Markey say
regulators should take the violations into account when they consider XM's plan
to combine with Sirius Satellite Radio Inc.
``This series of apparent violations by XM does provide fuel to opponents of
the merger and gives them reason to think they can get the deal rejected,''
said Paul Gallant, a Washington-based policy analyst with Stanford Washington
Research.
Sirius and XM need approval from the FCC and Justice Department for their
all-stock combination, worth $3.42 billion at today's closing prices.
The extent of the breach hasn't been widely disclosed by XM. The company told
shareholders on Feb. 22 in a Securities and Exchange Commission filing that
``certain'' antennas had unapproved locations or power without giving further
details, and said that the FCC had begun an investigation.
`Administrative Problems'
XM Chief Executive Officer Hugh Panero told investors on a Feb. 26 conference
call that while ``clearly there were mistakes or administrative problems,'' the
FCC isn't likely to force the company to make changes that would affect
customers. The company is ``just working with'' the FCC to find a solution,
Panero said.
``XM voluntarily disclosed these variances to the FCC, took unilateral action
to eliminate many of them, and continues to work directly with the FCC to
address any concerns,'' XM spokesman Chance Patterson said. The differences
between the approved and actual locations or signal strength are ``generally
immaterial,'' he said.
XM depends more on its ground-based network than Sirius, whose satellites give
better coverage. Sirius Chief Executive Officer Mel Karmazin told Congress last
week that 11 of the company's 138 antennas violated rules and that he switched
them off in October.
Four Hearings
Lawmakers have no direct authority to block the merger, though they might
influence the outcome by making their feelings known. Congress has held four
hearings on the proposed combination at which legislators raised concerns over
issues including XM's violation of FCC rules.
Shares of XM fell 20 cents to $10.93 at 4 p.m. New York time in Nasdaq Stock
Market trading. They've dropped 22 percent since the purchase by Sirius was
announced.
Sirius shares were down 3 cents at $2.77 and are down 25 percent since the
announcement.
The two companies ran afoul of the FCC last year, when the agency said they
were selling radios with signals that were too strong. Sirius and XM pulled the
radios off the market temporarily while they were fixed.
XM uses antennas, or repeaters, to boost signals where buildings or hills block
reception from orbiting satellites. The unapproved repeaters are dotted
throughout 59 markets including Los Angeles, New York and Chicago,
Washington-based XM said in an FCC filing in January.
42 Percent
In the filing, XM said the antennas in violation serve 42 percent of its
network. In Los Angeles, 23 of XM's 39 antennas are in breach of the rules, the
company said. In New York, 35 of 91 are.
XM said in December filings that turning off Los Angeles repeaters would have a
``drastic and adverse impact'' on reception and a New York shutdown ``would
devastate'' service.
Some antennas were erected thousands of feet from their approved location, said
XM, which has 7.5 million subscribers. In Chicago, an antenna was more than 11
miles from the authorized spot. In Austin, Texas, a repeater sanctioned for a
height of 490 feet was 900 feet high.
Consumer groups including the Consumers Union and the National Association of
Broadcasters, the trade group for broadcasters that provide free radio, said
the violations show why the companies shouldn't be allowed to combine.
``Given their repeated lack of candor in dealing with the FCC, it is
astonishing that XM and Sirius would now seek a government-sanctioned
monopoly,'' said Dennis Wharton, spokesman for the broadcasters' group. FCC
spokesman David Fiske declined to comment.
Raising Doubt
XM's failure to follow FCC rules indicates it may not live up to Karmazin's
promises that the combined company will offer consumers more choice and lower
prices, said Markey, who chairs the House Telecommunications and Internet
Subcommittee.
``What is the expectation it will follow through or fulfill any public interest
conditions?'' Markey, a Massachusetts Democrat, said in an e-mailed statement.
XM committed the violations as it raced against Sirius to begin service in 2001
and sign up customers. The two have racked up combined losses of more than $6.4
billion in five years as they built their networks. Annual sales at XM grew
from $20 million to $933 million in four years. Sirius had revenue of $637
million.
The companies say the merger won't stifle competition because of the
availability of alternative providers of entertainment and information such as
Apple Inc.'s iPod as well as high-definition and traditional radio.
To contact the reporter on this story: Christopher Stern at and
cstern3@xxxxxxxxxxxxx
Last Updated: April 24, 2007 16:27 EDT
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