NAB's Rehr Rips XM-Sirius Merger In Letter To FCC's Martin
March 23, 2007 at 7:38 AM (PT)
In a letter sent to FCC Chairman KEVIN MARTIN THURSDAY (3/22), NAB President/CEO DAVID K. REHR reiterated his criticism of the XM-SIRIUS merger and warned, "The hollow promise by SIRIUS and XM of reduced prices for less overall satellite radio programming is simply not a consumer benefit. Any price concessions offered by the merger parties will clearly be temporary in nature, unlike their monopoly power, which inevitably will lead to price increases in the future. Continued competition between two providers is the strongest possible constraint on prices."
...continued competition between two providers is the strongest possible constraint on prices.
REHR also asserted, "It is simply wrong to equate Internet radio, local AM, FM, and HD radio, MP3 devices, and iPods with satellite radio. While some of these devices may provide one or two parallel features, none resembles XM or SIRIUS in terms of programming breadth, price, reach and delivery mode. No other audio service is an effective substitute for a national multichannel mobile audio programming service. They cannot be expected to restrain the monopolistic impulses of a united XM-SIRIUS."
REHR urged MARTIN to reject the merger and said that the NAB would be filing a Petition to Deny in the case.
Read the compete letter by clicking here.