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COMMUNICATIONS DAILY
WEDNESDAY, MARCH 28, 2007 VOL. 27, NO. 59
FCC DEFINES SATELLITE radio market, then steps back from definition,
as text of competition report is released. (P.
7)
Competition Report
FCC Defines Satellite Radio Market As Not Including iPods
The FCC excluded other audio entertainment from a review
of competition in satellite radio. But the analysis "may not
reflect the appropriate markets to be considered" in a merger
review, the Commission said. XM and Sirius have tried to
justify their proposed merger based on competition from
iPods, HD Radio and other forms of audio entertainment (CD
March 21 p2). The satellite competition report was written
at Congress's request.
The Commission voted on the satellite competition report
at its March 22 meeting, (CD March 23 p9) but gave few
details. Democrats complained that the report didn't include
information from the merger of Intelsat and PanAmSat. The
document says data for the report was collected before the
merger closed. The report doesn't explain why it doesn't
assess the effects of the Intelsat-PanAmSat merger and SES-
New Skies mergers, though they were completed the first half
of 2006. Privatizing Intelsat has been good for the U.S.,
the FCC said, giving Intelsat the chance to develop new
services for the U.S. market.
The Satellite Industry Assn. submitted a Futron study
based on data through 2005 noting that revenue for satellite
communications services was 60% of satellite sector revenue,
up from 45% in 2000, the FCC said.
The video distribution market is offering point-to-point
capacity full time or for occasional use, the FCC said.
Variations in the market that affect the buyer-seller
relationship include whether someone contracts for full time
use or occasional use, and whether the contract is
prenegotiated, the FCC said. Satellite participants include
Intelsat, SES Americom, Loral and EchoStar, the Commission
said. Land-based video distribution is available only where
wire, coaxial or fiber is available, the FCC said:
"Satellite distribution, in contrast, is potentially
available to and from any point within the coverage area of a
satellite." -- Heather Forsgren Weaver
Reprinted with permission from 'Communications Daily.'
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