CABL Forum - challenging satellite radio

The satellite radio industry can chalk up one significant victory in its battle with broadcasters.

This week, broadcasters ditched their effort at the Federal Communications Commission challenging satellite radio's delivery of localized content. The work was a losing proposition to begin with, given the strong opposition the FCC received from satellite radio fans concerned about the local/satellite radio petition filed by the National Association of Broadcasters. (The commission received more than 25,000 comments on the issue, most of them generated through a grassroots endeavor created by XM asking satellite radio listeners to contact the Portals about their opposition to the NAB petition.)

Broadcasters wanted the FCC to restrict - even prohibit - satellite radio companies from delivering local content, such as their local traffic and weather services. In addition to receiving stiff resistance to the NAB petition, there were questions whether the FCC would really want to regulate content.

And it appears the FCC wasn't ready to do that. It was expected that the commission would eventually rule against broadcasters in the matter. That pending rejection from the Portals pushed the NAB to ask the FCC to dismiss its petition before the commission could hand down its decision.

Does that mean the fight is over?

In its petition to dismiss, NAB said it believes the record concerning satellite radio/local issues still needs updating with fresh evidence, which it said continues to mount. And the association talked about continuing to pursue the local satellite radio issue at the FCC and in Congress.

A concern for NAB is development of next-generation receivers with GPS technology, which can help consumers connect with locally-differentiated content. XM has GPS capabilities in place with its XM NavTraffic service, and earlier this month Pioneer introduced an aftermarket navigation system that integrates XM NavTraffic.

The NAB petition to dismiss also took issue with satellite radio's delivery of sports programming to listeners, whether its XM's offering of Major League Baseball next year or college football and basketball available now on XM and Sirius.

Broadcaster concerns about satellite radio are unfounded. But that's not going to stop its big lobby in D.C. from pursuing satellite radio through the regulatory and legislative channels. What broadcasters should do is put an end to their Inside-the-Beltway maneuverings and concentrate on competing with its satellite radio rival.

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challenging satellite radio