Rehr Hails FCC Report Narrowing XM/Sirius Market To Satellite-Only
March 30, 2007 at 12:45 PM (PT)
NAB President/CEO DAVID K. REHR has issued a statement regarding the FCC's tentative definition of the relevant market for satellite radio as solely XM and SIRIUS and not iPODs or other audio entertainment.
REHR says, "This FCC decision that the current duopoly of XM and SIRIUS do not compete with radio, iPODs or any other audio sources in the satellite radio market further undermines the arguments made by XM and SIRIUS to obtain a government-sanctioned monopoly. While the FCC clearly intends to examine all issues surrounding the XM/SIRIUS merger, the hurdle the parties must overcome to convince the FCC to change direction is very high. This is a dramatic blow to XM/SIRIUS' presumption of a broader market, and still more evidence that XM and SIRIUS compete ferociously against each other in the market for nationwide multichannel mobile audio services, and no one else."
The FCC's determination was included in a report at the behest of Congress and included the caveat that the report "may not reflect the appropriate markets to be considered."