Monday, August 13, 2007

NPR Opposes Waiver and Repeal of Rule

NPR had published today the strongest arguments yet against the waiver or repeal of the rule that prevents the control of both satellite radio licenses by a single entity. This will likely be XM's and Sirius' greatest challenge to retaining the rule to overcome.

NPR establishes legal precedence for interpreting the rule as binding to both the SDARS and the Commission, not simply a policy statement that XM and Sirius would have it interpreted. Further, NPR makes the point that it is not a waiver that XM and Sirius seeks, but a repeal of the rule, since it would not have any future applicability.

NPR is by no means anti-satellite radio. It makes excellent points about the success of satellite radio. It attributes much of this success--such as the quadrupling of channels-- to competition between XM and Sirius. These points are difficult to argue against.

XM and Sirius have their work cut out for them to explain this way.

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