The subject of Georgetown Partners seems to come up a lot in the proposed merger between Sirius and XM. Perhaps the reason is that Georgetown Partners has now had an incredible 23 meetings with the FCC, and an astounding 18 meeting in 45 business days in 2008.
Today, the FCC posted an ExParte notifying the public of yet another meeting between the FCC and Georgetown Partners. This meeting featured Chester Davenport, Jesse Jackson, and Kimberly Marcus on a teleconference with FCC Chairman Kevin Martin and Daniel Gonzolez.
Once again, the Exparte filing offers scarce detail on the Georgetown Partners proposal.
What people want to know is simple:
1. How much money is Georgetown Partners willing to lease 20% of the spectrum for?
2. Will Georgetown Partners help pay marketing costs?
3. Will Georgetown Partners help pay customer service costs?
4. Will they help pay capex costs?
5. Will they pay royalty costs?
6. Will Georgetown Partners pay chipset subsidies?
7. Will Georgetown Partners pay revenue share costs to partners?
8. Will Georgetown Partners pay radio rebate costs?
9. What types of programming is Georgetown Partners really proposing? How many music channels? What genres? How many talk channels? How many channels will be dedicated to various minorities?
10. Does Georgetown Partners intend to control this operation, or simply act as a middleman selling off space to terrestrial radio giants?
11. How much ad revenue does Georgetown Partners plan on generating? Will they target the same advertisers that Sirius and XM are targeting? Will they target the same advertisers that terrestrial radio is targeting?
12. Can Georgetown Partners present a business plan? How long do they anticipate for the business to be profitable? Does Georgetown Partners have pockets deep enough to launch such a business? Is their business really viable?
These are simple and straight forward questions that deserve an open and honest answer. Georgetown Partners has insisted on meeting after meeting with the FCC, and has yet to produce anything concrete for anyone to consider. Mr. Davenport, why not step up to the plate and answer these very basic questions?
In what is a somewhat related matter, the FCC announced today announced rules to promote diverse ownership in broadcasting
Position - Long Sirius, Long XM