Home Resources

Satellite Radio

Issue:

When the FCC first licensed a satellite radio service, it made clear that satellite radio was to remain a national service and should not provide localized content.   However, since then, the satellite radio industry has largely disregarded the terms of its charter by attempting to move into localized content.

Legislative Action - 109th Congress:

In December of 2003, XM Satellite Radio signed a written agreement with NAB, indicating that the company would not use its repeaters for local content inserts.  The agreement was predicated on the tact that XM had obtained a patent for local content insertions.  However, just a few weeks later, in a move violating the spirit of the agreement, XM announced it would indeed offer local programming by distributing local traffic and weather updates on its nationally distributed channels.  Sirius Satellite Radio has followed suit with a similar plan to designate some of its national channels for local weather and traffic information.

Fortunately, legislation has been introduced in both the House and Senate to address this issue.  Senator Olympia Snowe has introduced S. 2418 and two prominent Members of the House Commerce Committee, Chip Pickering (R-MS) and Gene Green (D-TX) have introduced H.R. 998.  Both bills would:

1. Codify the NAB/XM agreement barring satellite from local content inserts on its repeaters network;
2.   Would instruct the FCC to examine the legality of satellite’s more recent scheme to distribute local content on national channels and
3. Clarify that satellite radio companies could not use Global Positioning System technology and other technologies to trigger local content on satellite radio receivers.

As of October 2006, 138 Representatives had cosponsored H.R. 998 and 4 Senators had cosponsored S. 2418. 

Industry Views:

NAB believes that satellite radio should not be allowed to change the rules after kickoff.  From a competitive standpoint, hometown radio broadcasters have little to fear from satellite radio companies.   With 96% of Americans listening to free, local radio once a week and three-quarters tuning in daily – and satellite occupying less than 1% of the market – hometown radio continues to be the dominant source for compelling audio entertainment. That said, satellite radio companies should not be allowed to flaunt the terms of their FCC licenses.   As such, NAB urges Members of Congress to cosponsor H.R. 998 and S. 2418 and support their enactment.