In what has to be one of the most interesting developments of the day, Georgetown Partners has stated, “Georgetown Partners adamantly opposes delivering to Sirius cartfulls of taxpayer dollars by granting spectrum flexibility for it to broadcast television, while at the same time Sirius denies that there is sufficient spectrum to provide for a satellite radio competitor such as that proposed by Georgetown.”

1. Sirius and XM paid for their spectrum in an auction. They are not getting something for nothing. On the other hand, what Davenport and Georgetown Partners are seeking is at this point indeed something for nothing, and seeking a cartfull of shareholder dollars to accomplish it.

2. Georgetown states that Sirius is planning on using 20% of their spectrum for video services. This is not at all the case. Sirius’ Backseat TV is delivered from the overlay modulation technology developed by Sirius. That technology uses the full width of Sirius’ licensed spectrum to obtain what equates to about a 25% increase in capability. A portion of that 25% overlay is used to deliver video. Therefore, the statement by Davenport and his team is not at all accurate. Sirius invested time and money into their modulation overlay technology. They have a patent on it. Why should Davenport or anyone take away that value from shareholders?

3. Davenport’s team states, ” (Sirius’) unauthorized satellite live television broadcasting using spectrum that the Commission licensed exclusively for satellite radio broadcasting, and to conduct an investigation into Sirius’s misuse of spectrum.

Ironic. Sirius fully briefed the FCC on Backseat TV in 2004. Sirius and XM also deliver data services. Should consumer benefit of data and video be held back as technology progresses? Davenport is playing selective with the rules. He states that the rules call for satellite radio services only, and therefore the other technology should be stopped, and handed over to him. He conveniently forgets another rule about the services being SUBSCRIPTION BASED. Davenport himself wants to offer “FREE” satellite radio. How can he cast stones at backseat television, while at the same time wanting additional special consideration for a free service?

What we have here is someone seeking a cartfull of dollars for themselves, Georgetown Partners, while trying to shift the focus with smoke and mirrors to an illusionary cart full dollars regarding a SDARS license. The cartfulls of dollars have come on the backs of shareholders, NOT taxpayers.

The radio technology, video technology and data technology all offer consumer benefit. Davenports proposal has no detail, and no guarantee. It is all smoke and mirrors, and nothing concrete. Davenport has refused dozens of phone calls from this publication because he likely does not want to answer the tough questions.

Calling for an enforcement bureau investigation over a service that the FCC was briefed on years ago??? Desperation.

Davenport Request

Position: Long Sirius, XM.