Urgent Need For SDARS Spectrum Identified
The proposed merger of Sirius and XM Satellite Radio has brought to light an urgent need for additional satellite radio spectrum. Only 6 years ago, when the concept of SDARS was barely breathing, no one seemed to care about satellite radio. Companies and interest groups alike paid no attention even though less than $1 Billion could have bought one of these fledgling companies with all debt included.
A few brave institutional buyers, and many small retail investors saw the potential, and absorbed the risk to see if their investment could help a concept grow. Most however, went about their merry way, and never gave satellite radio a second thought. Now, in 2008 the fruits of satellite radio are much closer to fruition. The concept has rooted and begun to branch out. A large portion of the risk has dissipated, and the satellite radio companies are better able to weather the storm. It is at this point that a crisis has now enveloped the industry.
THERE SIMPLY IS NOT ENOUGH SPECTRUM:
- Primosphere wants 30%
- Georgetown Partners wants 20%
- The National Hispanic Media Coalition wants 15%
- Clear Channel and others feel that 50% should be given up.
Already we are over 100%, and this presents a problem. To solve this problem, we will break down the spectrum by category. According to the US census and other data (see links for source):
- White Americans represent 67%
- Hispanic Americans represent 13%
- Black Americans represent 12%
- Asian Americans represent 4%
- Native Hawaiian or Pacific Islanders represent .14%
- American Indians and Alaska Natives represent .75%
- Females represent 51%
- Gays and Lesbians represent 1.16%
- Senior Citizen Population represents 13%
Wait a minute, all of this adds up to 162%, and we have not even gotten into religion yet!
I have a solution. When SDARS was first being considered in 1995, there was 50MHz of spectrum being considered by the FCC (2310 MHz through 2360 MHz). At a point late in the process, 25 MHz was held back. As it turns out, now that everyone realizes that SDARS is viable, that additional 25 MHz of spectrum is badly needed. Perhaps another solution would also be workable. The WCS spectrum has not been used for quite some time. Perhaps carving up that spectrum would make use of it and solve all of the issues that WCS has been dealing with.
Now I realize that all of this will take some doing, but having ownership that is representative of the people and the population is important. Surely we need the government to mandate this, as we citizens must not be capable on our own… right?
WRONG
Capitalism is the solution. Investors that are men, women, black, white, gay, lesbian, seniors, Asian, and Native Americans can all own as large a stake as we want in SDARS. Companies of any size and background can own a stake. Primospere wants 30%…They can buy it on the open market in either company. That would even get them a seat on the Board of Directors. Chester Davenport of Georgetown Partners wants 20%. He can buy it just like me, you, and all of the other diverse shareholders in these companies.
The real question is why should those diverse shareholders that have taken the initiative to invest in these companies over the years be required to have the possible fruits of our investments stripped away? There is no need for any group to demand anything. They can buy away to their hearts content right now.
Why is it that a merger brings about this sudden need? If the merger were called off next week, would these same groups be petitioning the FCC to strip away spectrum? The answer is no. So how is “‘diverse ownership” only important in the circumstance of the merger?
Diverse programming is a wonderful thing. Educational programming is wonderful as well, as is children’s programming, and entertainment programming. Does not SDARS already offer programming that fills these needs? Has not SDARS taken steps that no other radio broadcaster has ventured into? Lets stop this charade. The ownership of SDARS is as diverse as the investors in these companies. That diverse mix can change at any time because these companies are traded on the stock market. Groups do not have to wait for a special circumstance to arise in order to participate. They can participate whenever they want.
It is time that the FCC arrived at their decision. Plain and Simple
Position – Long Sirius, XM.
The FCC needs to be abolished. Plain and simple. They no longer serve the public interest and nor do they maintain their independence from other branches of government, not to mention lobbying groups. They have forgotten their purpose.
Tyler well said.
“If the merger were called off next week, would these same groups be petitioning the FCC to strip away spectrum?” NO!
These groups would crawl back under a rock and go about their normal day to day business.
Thanks Tyler for the hard work you put into this day “Everyday”.
well said tyler.
the fcc is now merely a controlled government by and for the benefit of terrestrial radio interests.
it should be abolished, or stripped to merely assigning out or auctioning off new unused spectrum.
“Why is it that a merger brings about this sudden need? If the merger were called off next week, would these same groups be petitioning the FCC to strip away spectrum? The answer is no. So how is “‘diverse ownership” only important in the circumstance of the merger?”
This is an AWESOME point and hopefully the idiots at the FCC came to this conclusion on their own!!!
Why doesn’t the FCC create a Power Ball type National Lottery to raise funding for all these minorities. Hell, while they are at it, fund Social Security and a national health care program.
Relying on the FCC to arrive at this conclusion would be a mistake. Even if they do know it, they will never use this as a reasoning for their decision. As far as the FCC goes, this merger is all about politics and pandering. This is why it is taking so long.
The best way to ensure that the FCC knows, is to ensure that the public is aware that the FCC has been contacted on these issues. If enough people file their sentiment, and address that sentiment to the commissioners, they can not hide from it.
Instead we have one commissioner, Adelstein, who wants to take time and weigh and consider the opinion of 11 attorneys general, when these people have brought up nothing new.
Let’s take the 3-2 vote and get this decision made…..no matter which way that decision may fall.
The points have all been made. The points have been considered time and time again. It is time to vote.
These groups are opportunist’s. They are designed to create havoc until they can get something for FREE. It has been going on for decades. And we allow it. No one has the balls to stand up to these groups on fear of being labeled a racist. These people are blood sucking leaches. They think they can, at any time, just step in and get something for free because they are black, hispanic, etc. These people do not want to work for a living. They want handouts from your hard working pockets. It has to stop.
way to go great article
To the FCC;
You all should be embarrassed, and fired! You have lied and stalled enough. 180 day clock =a scam, by the end of the year=a Lie, by the end of the first quarter=another Lie. DOJ has proven this is not a monopoly! Allow the licenses to be combined and stop pandering to every group out there! They have no right trying to get my Company for free, I paid for shares of my company and you have no right to give anybody anything that I own. If the minorities want more radio exposure let them go buy a radio station with their own money. This is a free country, not a socialist state. So allow the combo with no concessions other than what the companies agreed to begin with. I hope you are all investigated for this disgrace, you are going far beyond what the FCC was intended for and now you are using this unassigned power to destroy American confidence in our government, and any company you choose to destroy. Your stalling of this decision has cost me personally and many more I am sure, I hope the companies file suit for your stall tactics, the empire state building was built in less time. And both companies have now lost the Millions/ Billions due to your indecision. You have no right to cost companies so much. This is America, free market capitalism, remember? This is not a necessity it is a pay luxury service. Mr. Martin do you have a Boss that oversees you, or are you a free-bird with no one to answer to? I would like to speak to your boss because no common sense decision can take over a year to make. I don’t know of any company, employee, or anybody that can take so long to do a job and still have a job after showing this amount of incompetence. I want you and you group all fired. Here is a link to a video that shows how irrelevant you group is; http://www.youtube.com/watch?v.....re=related
So in ending you appear to be protecting your buddies at the NAB, and pandering to any special interest group wanting something for free. How about the Americans you supposed to be protecting? By the length of time you have been taking means one thing to this American and that is you are saying FU to ME. And I want you Fired. I will be sending this to anyone that will read it the sad thing about that is that Unless it is accompanied with a check I assume no government official will read it.
Signed ; One disappointed American.
I believe it is time to peacefully protest, perhaps picket, outside the offices of the FCC. They cannot ignore “Free Sirius-Xm” signs parading the streets. I’m game.