Satellite Radio Firms Hire Lobbyist

WASHINGTON, Jun 05, 2007 – The nation’s only two satellite radio companies have hired a high-profile public affairs firm to lobby the federal government on their proposed combination, which faces regulatory and congressional scrutiny.

Sirius Satellite Radio Inc. (SIRI) and XM Satellite Radio Holdings Inc. (XMSR) hired Quinn Gillespie & Associates LLC, according to a federal disclosure form filed Tuesday.

The firm was founded by Jack Quinn, who served as counsel to President Bill Clinton from 1995 to 1997, and Ed Gillespie, a Republican Party strategist who served as the Republican National Committee chairman during the 2004 election cycle.

In February, New York-based Sirius said it would seek government approval to acquire Washington-based XM in a deal valued at $4.57 billion at the time.

But the companies face stiff opposition from federal lawmakers, who dispute the companies’ claim that the merger would not eliminate competition nor lead to higher subscription prices.

The companies also face significant regulatory hurdles. In 1997, the Federal Communications Commission granted licenses to them on the condition that they would never merge to create a potential satellite radio monopoly.

Sirius Chief Executive Mel Karmazin has argued that, since then, new technology, such as high-definition radio, Internet-based radio and iPods, provide significant competition.

Both companies filed an application with the FCC to transfer radio licenses to a new combined company. However, the agency has not yet accepted the filing to begin a review that could take up to six months or longer.

In addition to Quinn and Gillespie, who are registered to lobby on behalf of the companies, several other veteran former Capitol Hill and White House officials are listed in the disclosure form.

They include: Jeff Connaughton, who worked as special assistant to the counsel to President Clinton in 1994 to 1995; Kevin D. Kayes, who most recently served as chief counsel to Senate Majority Leader Harry Reid, D-Nev.; Allison Giles, who served as chief of staff to the House Ways and Means Committee under then Chairman Bill Thomas, R-Calif.; Elizabeth Hogan, who worked as special assistant to the Commerce Department; and, Christopher McCannell, who was chief of staff to Rep. Joseph Crowley, D-N.Y.

Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying.



Comments:

  1. I guess they are going to need all the help then can get to fool the government that this is actually good for consumers.
  2. Quote:
    Originally Posted by D0TC0M View Post
    I guess they are going to need all the help then can get to fool the government that this is actually good for consumers.
    Or convince the brain dead that this ISN'T a bad deal.

    Come on people. If you are FOR government regulation you really need to walk into on coming traffic cause you are wasting our air.
  3. I can't wait for merger. As a sports fan- I want all the content in one place. I don't understand why anyone could possibly be against merger. Hope these guys help it happen...
  4. Quote:
    Originally Posted by rustytrombone View Post
    Or convince the brain dead that this ISN'T a bad deal.

    Come on people. If you are FOR government regulation you really need to walk into on coming traffic cause you are wasting our air.
    I wish the government regulated a few things, health care and oil being the big 2. Government regulation isnt ALWAYS a bad thing.
  5. Quote:
    Originally Posted by NFL-Fan View Post
    I can't wait for merger. As a sports fan- I want all the content in one place. I don't understand why anyone could possibly be against merger. Hope these guys help it happen...
    Because they aren't actually going to combine the services. They will broadcast separately and if you want to get XM's content on Sirius they will have to squeeze that into the already tight bandwidth you have now, and at a "tiered" price structure.

    Put all of the content into one stream across all available bandwidth and that would be the best thing that could happen for us as subscribers. The problem with that is one set of subs would need new equipment, and Mel said they won't do that.

    Getting baseball on Sirius would be great but not if it means all of the other stations will sound like s**t
  6. Exactly Fergz99
  7. I am happy to see they are getting some help. I wonder why its only now? Maybe the timing is right.

    I support the merger. One company can survive longer than two.
  8. Perhaps this is the reason Sirius had to borrow another $250Million. They are desprate.
  9. Quote:
    Originally Posted by Fergz99 View Post
    Because they aren't actually going to combine the services. They will broadcast separately and if you want to get XM's content on Sirius they will have to squeeze that into the already tight bandwidth you have now, and at a "tiered" price structure.

    Put all of the content into one stream across all available bandwidth and that would be the best thing that could happen for us as subscribers. The problem with that is one set of subs would need new equipment, and Mel said they won't do that.

    Getting baseball on Sirius would be great but not if it means all of the other stations will sound like s**t
    I am hoping that would be a short-term problem. Eventually they would have to combine the bandwidth, even if it meant buying new radio's for the old listeners. But, I acknowledge, this is something that would need to be dealt with...



  10. who wants to flip it first
  11. http://gullfoss2.fcc.gov/prod/ecfs/upload_v2.cgi

    and enter 07-57 at the top
    Due July 9
  12. Quote:
    Originally Posted by NFL-Fan View Post
    I am hoping that would be a short-term problem. Eventually they would have to combine the bandwidth, even if it meant buying new radio's for the old listeners. But, I acknowledge, this is something that would need to be dealt with...
    In on of the hearings Mel said something to the fact that none of the current radios would be made obsolete for life of the current sats, including the one to be launched by Sirius next year. Estimated at around 10-15 years before they would phase out the old radios.

    Sorry but the only reason to do the merger is to combine the bandwidth and the services and if they aren't able to do that for 10-15 more years, then why merge now ?

    I have both services and like them the way they are and don't see any positive to this merger the way Mel has talked about it in the hearings.
    Quote:
    Originally Posted by SRP2002user View Post
    http://gullfoss2.fcc.gov/prod/ecfs/upload_v2.cgi

    and enter 07-57 at the top
    Due July 9
    I sent a comment detailing my concerns about the merger. I think everyone that subscribes should voice their opinion, pro or con. Let the FCC get a real feel for what the paying community thinks.
  13. Quote:
    Originally Posted by Fergz99 View Post
    In on of the hearings Mel said something to the fact that none of the current radios would be made obsolete for life of the current sats, including the one to be launched by Sirius next year. Estimated at around 10-15 years before they would phase out the old radios.

    Sorry but the only reason to do the merger is to combine the bandwidth and the services and if they aren't able to do that for 10-15 more years, then why merge now ?

    I have both services and like them the way they are and don't see any positive to this merger the way Mel has talked about it in the hearings.

    I sent a comment detailing my concerns about the merger. I think everyone that subscribes should voice their opinion, pro or con. Let the FCC get a real feel for what the paying community thinks.

    Well, there is still the benefit of a radio that can get both XM and Sirius content. Those would be available immediately and probably would be placed in new cars just as quickly. Those radios would be able to benefit from all of the programming and at a reduced price, both in subscription price and hardware cost, than currently available (i.e. no need to buy two radios, pay for two subscription, and have two sep. radios in your car).

    In addition, OEM wise, the car companies would move as quickly as possible to have radios installed that can get content from both.

    Now for some speculation- I wonder if current Sirius or XM radios might not be able to get all of the bandwidth if the combined company started to broadcast all to Sirius or all to XM. If so, that would only make radios from one company obsolete. While I know Mel said the radios wouldn't be made obsolete- would it matter if it did and the new company purchased new radios for those affected? Just wondering about possibilities...

    By the way, I don't know that the new sat. to be launched in 2008 would be counted in Mel's statement or not. But Sirius' current sats don't have 10-15 years left, more like half that.
  14. Quote:
    Originally Posted by NFL-Fan View Post
    Well, there is still the benefit of a radio that can get both XM and Sirius content. Those would be available immediately and probably would be placed in new cars just as quickly. Those radios would be able to benefit from all of the programming and at a reduced price, both in subscription price and hardware cost, than currently available (i.e. no need to buy two radios, pay for two subscription, and have two sep. radios in your car).

    By the way, I don't know that the new sat. to be launched in 2008 would be counted in Mel's statement or not. But Sirius' current sats don't have 10-15 years left, more like half that.
    Mel did include the new sat when he spoke about it at one of the hearings. He also stated that both sets of radios will continue to be broadcasts to, and they can't receive each others signal.

    As far as getting all of the content, what good will getting all of the content if the sound quality is halved ? They can't combine the bandwidth and broadcast to both sets of radios. Mel has stated that all current equipment will continue to work.

    Believe me, I wish they were going about this differently, but sadly they aren't. The way they are going about is not beneficially to the subscribers.
  15. Quote:
    Originally Posted by NFL-Fan View Post
    Well, there is still the benefit of a radio that can get both XM and Sirius content. Those would be available immediately and probably would be placed in new cars just as quickly.
    This requirement is part of the license. It will not be done any faster after the merger than before. Unless you think that XM and Sirius are actually holding back and violating their license agreement.

    Quote:
    Originally Posted by NFL-Fan View Post
    While I know Mel said the radios wouldn't be made obsolete- would it matter if it did and the new company purchased new radios for those affected? Just wondering about possibilities...
    First of all, if you don't mind that he may be lying about supporting half of their user base do you mind if he lies about raising prices? Also, it is not possible for the new company to buy new equipment for all of their subs. For example, if they stopped supporting Sirius, would the company replace my home radio and the 3 docking kits and 2 boomboxes I have? How about for my car? Do you really think they'll develop an XM receiver to replace my 2005 OEM Dodge tuner? In short, it is not possible for them to replace all the tuners in the market.


    Quote:
    Originally Posted by NFL-Fan View Post
    By the way, I don't know that the new sat. to be launched in 2008 would be counted in Mel's statement or not. But Sirius' current sats don't have 10-15 years left, more like half that.
    Mel is the one who stated the promise included the new sat. Now, if you don't think it's wrong for him to lie about continuing to support both services for their life cycle then clearly lying about the length of this life cycle is perfectly acceptable.
  16. There is little doubt there will be a long phase in period, which will more than likely include dual sub tuners. After so many years, it will be easy to phase out one or the other and then combine the bandwidth. Will it happen over night... No, but I never thought that was the plan to begin with. I do think they will slowly remove some redudency. I never heard Mel say they wouldn't. He said the radios would continue to work and they will.
  17. Quote:
    Originally Posted by DAB View Post
    they will slowly remove some redudency. I never heard Mel say they wouldn't. He said the radios would continue to work and they will.
    Exactly. Don't expect to get the same number of channels on your existing radios after the merger. Will it happen overnight? Probably not. It will probably happen within the first year or so. Meaning as soon as they get dual subs radios out and the ability to create a tiered service. They will need some content that is premium to do so.
(17) comments | Add your comments