A Petition for Declaratory Ruling concerning Interoperable Radios has been made to the FCC in the merger proceeding. We think this petitioner hits the nail on the head. XM and Sirius have been disingenuous in their attempt to provide interoperable radios. They say the technology has been developed but there is no incentive for anyone to market it. We don't think this is what the FCC meant. We believe that the FCC meant that all radios would be interoperable. It is silly to think that a consumer is going to replace an OEM radio with an interoperable radio. The intent of interoperability was so the consumer could switch services with no additional hardware purchases. The ONLY way this can happen is if all radios are interoperable.
He makes an excellent point that for those that purchased XM so that they could listen to NASCAR now have to purchase Sirius radios in order to listen to NASCAR. If they had lived up to the interoperable requirement, the consumer would not have to purchase a new radio; they could simply switch services. It is only a matter of time before there are lawsuits over this. It is another vulnerability to which they have exposed their shareholders.
We agree 100% with the petitioner; a Declaratory Ruling is in order.
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