Ready to 
FCC considers forcing HD radio tuner on Sirius XM decks
Robert Hallock
August 26, 2008 1:50 PM ET in Tech
It has been a long and arduous courtship between the rival satellite radio firms Sirius and XM. While the merger was announced more than a year prior, legal oppositions from the National Association of Broadcasters has protracted the process and prompted the FCC to delay its blessings for quite some time.
First signs that the merger was coming to resolution bubbled to the surface in late July when the WSJ broke news that the FCC was close to approving the motion. This represented the first significant movement in the case since the U.S. Department of Justice satisfactorily completed their anti-trust review in March.
The FCC voted to approve the merger on July 25 with a tie-breaking vote by Commissioner Deborah Taylor Tate (R-TN). While XM-Sirius breathes a sigh of relief, their matrimony does not come without restrictions. Chiefly, XM-Sirius must agree to cap prices for three years following the merger, reduce the total price of channel packages, and allow consumers to select their desired channels a la carte.
Amidst the July 25 approval, the FCC retained the rights to impose additional terms on the happy couple. Amongst those being considered is the mandate that all future Sirius XM Radio devices come equipped with an HD Radio tuner as well.
Advocates of the term include Ibiquity, developer of the HD Radio standard, Clearchannel, three US senators and a modicum of radio stations. Meanwhile, GM and Toyota stand in opposition by noting that forcing multiple tuners in Sirius XM radios would be “an unprecedented requirement regulating the choice of entertainment technologies in an automotive environment.”
Both GM and Toyota automobiles now come equipped with Sirius or XM support in virtually every make and model. Because today’s in-car audio devices are purchased on third-party contract, a mandated increase in the sophistication of the radios directly equates to increased cost for the large auto-makers.
In relief, the supporters of the HD Radio inclusion fails to surprise. Its backers, a cadre of parties with a vested interest, stand to financially or politically profit from the maneuver.
While the merger once again returns to limbo while the FCC considers submitted stipulations, it remains to be seen how the FCC will decide in this matter.
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