WASHINGTON and NEW YORK, July 24 /PRNewswire-FirstCall/ -- XM Satellite Radio Holdings Inc. (Nasdaq: XMSR) and SIRIUS Satellite Radio (Nasdaq: SIRI) today confirmed that the companies are in discussions with the Enforcement Bureau of the Federal Communications Commission to settle outstanding enforcement matters.
As previously disclosed by the companies, in 2006, the FCC commenced investigations regarding the compliance of certain radios that include FM transmitters with the Commission’s rules, and the compliance of certain terrestrial repeaters with the special temporary authority granted by the Commission. The companies hope to enter into a Consent Decree with the Federal Communications Commission terminating these inquiries.
As part of a possible Consent Decree, the companies expect to agree, among other things, to:
-- adopt comprehensive compliance plans, and take steps to address any potentially non-compliant radios remaining in the hands of consumers;
-- in the case of XM, within 60 days of the order adopting the Consent Decree, shut down 50 variant terrestrial repeaters, and shut down or bring into compliance an additional 50 variant terrestrial repeaters;
-- in the case of SIRIUS, bring into compliance or shut down up to 11 variant terrestrial repeaters within 60 days of the order adopting the Consent Decree. These terrestrial repeaters were shut off by SIRIUS in October 2006; and
-- make a voluntary contributions to the United States Treasury of approximately $17 million in the case of XM, and approximately $2 million in the case of SIRIUS.
There can be no assurances regarding the ultimate outcome of these enforcement proceedings, including whether the FCC will approve Consent Decrees under discussion with the companies.