Primosphere Clarifies Their Position
Primosphere does not want to “lease” spectrum. They are seeking that their application be granted so that they, Primosphere, will be a licensee of a portion of the SDARS spectrum. The company also clarified that their satellite radio service would be FREE.
Simply stated, the company wants a portion of the existing spectrum on a permanent basis to deliver a free Satellite radio service. They company contends that their free service would offer a competitor in the satellite radio arena to a combined Sirius and XM.
Are they asking for part of Sirius/XM spectrum or are they asking for a NEW portion of spectrum, like you were mentioning before Tyler? I believe it is the WCS spectrum?
They have also stated that they could be up and running within 6 months, so they would not be leeching anything off of Sirius/XM. This is definately a proposal I could live with, although I am sure the interop would come into play here and Sirius/XM would have to be able to recieve primo’s signal as well.
It is a totally reasonable proposal — that XM and SIRI should have to give up some their spectrum in exchange for the monopoly.
Not that I want to see it necessarily, but the proposal makes sense.
If they offer the service for free where will the money come from to run the business, (ad revenue and donations?)? Not sure how that would work, it would be like offering free cable. It would be nice to see the combined company spin off their NPR and news stations to create the minority interest needed to diversify the spectrum.
Keith: You are correct, it would basically be Terrestrial Radio via SatRad. It would be free, but you would have to listen to commercials.
As far as minority interests, they have plenty of minority programming to qualify them for minority interests. Those arguing otherwise (ie. Chester Davenport) do not care about the PROGRAMMING of minority interests, they care about lining the pockets of minority interests. Its all about money to those racist bastards. To hell with them.
Wait …Sirius and XM have been in the business many years and they can not even make money charging for service. Primosphere will offer the service for free and they do not even have the satellites …is this a trick or a joke?
What application? It was already dismissed by the FCC.
http://fjallfoss.fcc.gov/edocs.....2779A1.pdf
Sirius and XM paid $90 million EACH for their parts of the SDARS spectrum in 1997. How much would Primosphere have to pay for theirs?
The proposal is nonsense as is Chester’s–they want to be able to broadcast to the tens of millions of sat radios (in Chester’s case 20% of channels each radio for about 35 million radios and Primos all of either XM’s or Sirius’s outstanding radios). It has cost the current sat rad’s billions to get these radios out there and both want a widfall. Also primo obviously expects XM or Sirius to be forced to sell them sats since there is no other way the service could be up in 6 months. THe simple fact is that two services competing can not make it–the combined XM & Sirius would love to offer a ten channel ad supported option to all radios after the merger (NAB would oppose it like crazy and is not opposing this stuff now because they know it would result in the deal being a loser).
Again two competing services can not make it unless you give them anti trust wavier to cooperate on OEM and content deals.
Tyler, Quick question. If your so optimistic about Sirus xm and the future, why have you reduced your position in both holdings substantially? Wouldnt this be a nice place to reenter if you’ve already sold at profits at a higher prices? Begining to wonder?
Kevin,
I reduced my position in the sector a long time ago (before I started writiing about SDARS). I have a long term holding that I am comfortable with and see no need to increase or decrease it.
While I enjoy the concept of SDARS, and feel it will be very strong in the future, there are other places where I can make more money investing.
If I were considering buying more, I might do it in this area, but again, I can get a better return in a shorter timeframe in other investments.
Simply stated, I am comfortable with the position I have.
I hear ya. I’m frustrated and in for a lot of cash. Sorry. I ck. your site daily, Thanks