Pioneer Takes Shot At HD In FCC Filing
While the merger between Sirius and XM is in the books, and integration of systems and content is already happening, there is still one remaining issue that relates to satellite radio that is being considered. Whether or not HD Radio technology should be required in SDARS receivers.
The most basic and fundamental question is whether or not the FCC even has the power to mandate such an issue. That being said, there are many things to consider, and the comments on the subject are starting to heat up.
Pioneer, who was staunchly against such a proposal has weighed in yet again. The audio manufacturer outlines many issues as to why such inclusion is wrong. Among the concerns expressed by Pioneer is the fact that “AM/FM/HD components have poorer AM/FM reception capability than existing AM/FM devices”
Reception and interference have been a hot button topic among HD detractors. While other audio entertainment services have had to fend for themselves in these credit markets, HD Radio has had the benefit of government support. Even with that support, adoption of the technology by consumers has been slow. Many industry watchers have speculated that the move to become included in SDARS receivers is an effort to boost acceptance by pushing the product into the market rather than as a result of consumer demand.
HD’s ability to grow has been challenged, and this last remaining issue before the FCC may be Ibiquity’s best hope of getting their HD Radio technology in front of consumers. Pioneer believes that the marketplace, and not the FCC, should be the determining factor of which devices and services survive. Personally, I agree with Pioneer.
Position: Long SIRI.
Every time I see “HD radio” is makes me mad. the name “HD” is a total scam – there’s nothing high definition about hd radio…
Here is a post of mine from the forums:
http://siriusbuzz.com/forum/sh.....php?t=1065
I am just as unhappy as anyone about the failure of the price of this stock, but CEOs should be compensated based on how the COMPANY is doing, not the stock price.
If you look at how the COMPANY has done since Mel signed on, I think Mel has deserved every penny he has made. Mel has done a wanderful job of getting the merger done, cutting costs, and growing subscribers and revenues at a remarkable pace with the state of the current economy.
With the exception of a few questionable deals (not having financing ready when the merger was approved and some questionable comments during a conference), Mel has treaded some very thin ice very successfully.
That said, I think it would do his investors and the rest of Wall Street a world of service if he and the rest of the board gave up their bonuses in order to help pay down the 2009 debt. It would show true leadership, and might even help get the stock price back up to where they could take some financing from Loral. Mel also has a large number of shares, so it would help him out as well.
Not only is the term “HD” a scam, but the whole HD Radio system is a scam, because it simply doesn’t work.