New bill to keep XM, Sirius from offering local news and alerts
2/15/2007 12:04:35 PM, by Eric Bangeman
The foes of satellite radio are marshalling their forces again, as a bill introduced to Congress this week would bar XM Radio and Sirius from broadcasting "locally differentiated services" such as traffic, weather, and emergency information. Titled the "Local Emergency Radio Service Preservation Act of 2007," H.R. 983 is cosponsored by Rep. Gene Green (D-TX) and Rep. Chip Pickering (R-MS). Not surprisingly, it has the backing of the National Association of Broadcasters (which has contributed heavily to Pickering's campaign war chest).
The justification for the bill is clumsy, saying that the Federal Communications Commission only intended the satellite radio services to provide national programming. That purported restriction would enable the FCC to continue supporting "a vibrant and vital terrestrial radio service for the public."
Reps. Green and Pickering's legislation would also give the FCC nine months to conduct a rule-making proceeding, during which it would evaluate the effect on local radio stations of allowing satellite radio providers to offer local services. In addition, the FCC would study the satellite providers' local capabilities. At the end of the proceeding, the FCC could then explicitly authorize the satellite radio companies to offer local programming.
Both satellite radio companies currently offer local traffic and weather data to their subscribers. More importantly, they also carry public safety information such as Amber Alerts for missing children along with other emergency information; during the aftermath of Hurricane Katrina, they became an important resource after the local stations were knocked off the air.
Neither XM Radio nor Sirius have been able to put together a profitable quarter since their launch, but that hasn't stopped the terrestrial radio stations from feeling threatened. And when you're feeling the competitive heat, why not turn to the government for help just in case the free market doesn't work out for you?
This is the fourth time that NAB-backed legislation that would place limits on satellite radio broadcasters has been introduced to Congress, with the previous efforts ending in failure.
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