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The House Committee on Energy and Commerce
The Honorable Michael K. Powell
Chairman
Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
Dear Chairman Powell:
In a May 22, 2002 letter, we expressed our concern that XM Satellite Radio
was pursuing permanent licenses for their terrestrial repeater network as part
of satellite digital audio radio service (SDARS). If licenses for the network
are permanently granted, then XM could combine this repeater network with their
patented technology to provide localized programming, an activity which the
Commission has previously indicated should be prohibited.
In your June 12, 2002 response, you stated that the Commission is aware that
XM's repeater network could allow localized programming and that XM had stated
its patent is not intended to provide local programming. Our concern regarding
permanent licenses has significantly increased with the recent announcement by
XM of a new service that would transmit localized weather programming to marine,
aviation, and emergency subscribers. It is clear that nothing now stops XM from
taking this a step further and offering local programming in the terrestrial
radio market to hundreds of thousands of automobile subscribers.
We maintain convinced that the final licenses for SDARS repeaters should
prohibit these devices from in any way participating in the delivery of
localized programming. Given this latest expansion into localized programming,
we believe that the Commission must guard against the possibility of XM
eventually trying to skirt the intent of the Commission, should it determine XM
cannot offer localized programming through the repeater network.
In order to be effective, the Commission should require XM to fully disclose
all business and technology plans for offering localized programming to
determine exactly what XM plans to do in the terrestrial radio market for which
it is seeking these repeater licenses. This knowledge is necessary for the
Commission to make a fully informed final license decision.
Sincerely,
W.J. "Billy" Tauzin
Chairman
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