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Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File Nos. EB-06-SE-250 and
In the Matter of ) EB-06-SE-386
Sirius Satellite Radio Inc. ) Acct. No. 200832100061
) FRN No. 0006345730
)
ORDER
Adopted: July 25, 2008 Released: August 5, 2008
By the Commission: Chairman Martin and Commissioners Adelstein and Tate
issuing separate statements.
1. In this Order, we adopt the attached Consent Decree entered into
between the Federal Communications Commission ("Commission") and
Sirius Satellite Radio Inc. ("Sirius"). The Consent Decree terminates
investigations by the Commission into whether (a) certain radio
receivers intended for use with Sirius' satellite radio service and
marketed by or on behalf of Sirius were in compliance with Section
302(b) of the Communications Act of 1934, as amended, (the "Act"), and
Parts 2 and 15 of the Commission's rules; and (b) Sirius constructed
and operated terrestrial repeaters without Commission authorization in
violation of Section 25.120 of the Commission's Rules.
2. The Commission and Sirius have negotiated the terms of the Consent
Decree that resolve these matters. A copy of the Consent Decree is
attached hereto and incorporated herein by reference.
3. After reviewing the terms of the Consent Decree and evaluating the
facts before us, we find that the public interest would be served by
adopting the Consent Decree and terminating the investigations. We do
not come to this conclusion easily. The apparently intentional nature
of some of the violations resolved by this Order and the Consent
Decree and the apparent involvement of certain Sirius personnel in
these violations are very troubling. Indeed, the ability and
willingness to conform one's conduct to the requirements of the
Commission's Rules are central to the qualifications of any Commission
licensee. We must balance our concern, however, against the public's
interest in the continued availability and viability of Sirius'
satellite radio service and the impact on the public and other
licensees that Sirius' violations precipitated. These considerations,
taken together with the rigorous oversight and reporting obligations
and substantial voluntary contribution prescribed in this Order and
the Consent Decree, persuade us that settlement of these matters would
best serve the public interest.
4. In the absence of new material evidence relating to this matter,
therefore, we conclude that our investigations raise no substantial or
material questions of fact as to whether Sirius possesses the basic
qualifications, including those related to character, to hold or
obtain any Commission license or authorization.
5. Accordingly, IT IS ORDERED that, pursuant to section 4(i) of the Act,
the Consent Decree attached to this Order IS ADOPTED.
6. IT IS FURTHER ORDERED that the above-captioned investigations ARE
TERMINATED.
7. IT IS FURTHER ORDERED that all third-party complaints against Sirius
before the Commission related to the above-captioned-investigations as
of the date of this Consent Decree ARE DISMISSED.
8. IT IS FURTHER ORDERED that a copy of this Order and Consent Decree
shall be sent by first class mail and certified mail, return receipt
requested, to counsel for Sirius, Robert L. Pettit, Esq., Wiley Rein
LLP, 1776 K St., NW, Washington, DC 20006.
FEDERAL COMMUNICATIONS COMMISSION
Marlene H. Dortch
Secretary
Before the
Federal Communications Commission
Washington, D.C. 20554
)
) File Nos. EB-06-SE-250 and
In the Matter of ) EB-06-SE-386
Sirius Satellite Radio Inc. ) Acct. No. 200832100061
) FRN No. 0006345730
)
CONSENT DECREE
The Federal Communications Commission ("Commission" or "FCC") and Sirius
Satellite Radio Inc. ("Sirius"), by their authorized representatives,
hereby enter into this Consent Decree for the purpose of terminating the
Commission's investigations into whether (a) certain radio receivers
intended for use with Sirius' satellite radio service and marketed by or
on behalf of Sirius were in compliance with Section 302(b) of the
Communications Act of 1934, as amended (the "Act"), and Parts 2 and Part
15 of the Commission's rules; and (b) Sirius constructed and operated
terrestrial repeaters without Commission authorization in violation of
Section 25.120 of the Rules.
I. DEFINITIONS
1. For the purposes of this Consent Decree, the following definitions
shall apply:
a. "Act" means the Communications Act of 1934, as amended, 47 U.S.C. S:
151 et seq.
b. "Adopting Order" means an Order of the Commission adopting the terms
of this Consent Decree, without change, addition, deletion, or
modification.
c. "Bureau" means the Enforcement Bureau of the Federal Communications
Commission.
d. "Commission" and "FCC" mean the Federal Communications Commission and
all of its bureaus and offices.
e. "Complaints" means third-party complaints that may have been received
by, or are in the possession of, the Commission or Bureau alleging
that certain radio receivers intended for use with Sirius' satellite
radio service and marketed by or on behalf of Sirius are not in
compliance with Section 302(b) of the Act and Parts 2 and Part 15 of
the Rules, or that Sirius failed to comply in all respects with the
special temporary authority to operate eleven of its terrestrial
repeaters granted pursuant to Section 25.120 of the Rules.
f. "Compliance Plan" means the program described in this Consent Decree
at paragraph 9.
g. "Effective Date" means the date on which the Commission releases the
Adopting Order.
h. "FM-Out Switched Radios" means radio receivers bearing FCC ID Numbers
NKRUPAKW001, O6ZS50-C1, NKRUPASY001, NKRUPAST201 and NKRUPARK001.
i. "FM-Out Unswitched Radios" means radio receivers bearing FCC ID
Numbers P3HXTR3, P3H-XTR3, P3HXTR3G3S, P3HCALYPSO, P3HKT-SR3000,
P3HSV1, P3HSV1G3, P3HSV1G3S, P3HSPR1, P3HSPR1-1, P3HSP-R1-1 and
P3HSP-R2.
j. "Investigations" means (a) the investigation in File No. EB-06-SE-250
commenced by the Bureau's June 20, 2006 Letter of Inquiry commenced by
the Bureau in April 2006 into the manufacture, authorization,
importation, distribution and marketing of the Radio Receivers; and
(b) the investigation in File No. EB-06-SE-386 commenced by the Bureau
relating to Sirius' operation of its terrestrial repeaters.
k. "OET" means the Office of Engineering and Technology of the Federal
Communications Commission.
l. "Other Radios" means radio receivers bearing FCC ID Numbers
NKRUPAUS007 and NKRUPAUS002.
m. "Parties" means Sirius and the Commission.
n. "Radio Receivers" means all satellite radio receivers with built-in
wireless FM modulators manufactured, sold or distributed for use with
Sirius' satellite radio service on or before the Effective Date under
FCC ID Numbers NKRUPAKW001, O6ZS50-C1, NKRUPASY001, NKRUPAST201,
NKRUPARK001, P3HXTR3, P3H-XTR3, P3HXTR3G3S, P3HCALYPSO, P3HKT-SR3000,
P3HSV1, P3HSV1G3, P3HSV1G3S, P3HSPR1, P3HSPR1-1, P3HSP-R1-1, P3HSP-R2,
NKRUPAUS007 and NKRUPAUS002.
o. "Rules" means the Commission's regulations found in Title 47 of the
Code of Federal Regulations.
p. "Sirius" means Sirius Satellite Radio Inc. and its
predecessors-in-interest and successors-in-interest.
II. BACKGROUND
2. Pursuant to Section 302(b) of the Act and Parts 2 and 15 of the Rules,
certain radio frequency devices, including wireless FM modulators,
must be authorized in accordance with the processes set forth in the
Rules and comply with all applicable technical standards and labeling
requirements prior to importation into, or marketing in, the United
States. On June 20, 2006, the Bureau issued a Letter of Inquiry to
Sirius in File No. EB-06-SE-250 initiating an investigation into the
manufacture, authorization, importation, distribution, and marketing
of certain radio receivers (with wireless FM modulators) intended for
use with Sirius' satellite radio service.
3. When the Commission adopted service rules for the Satellite Digital
Audio Radio Service ("SDARS"), it recognized that some SDARS
applicants intended to use terrestrial repeaters to improve reception
of the service in "urban canyons" and other areas where it might be
difficult to receive SDARS signals transmitted by satellite, and it
sought comment on the rules that should be applicable to those
repeaters. Pending adoption of permanent rules for terrestrial
repeaters, the FCC has authorized repeaters through the grant of
special temporary authority ("STA") pursuant to Section 25.120 of the
Rules. Sirius filed an STA request on July 24, 2001, to begin
commercial service using its terrestrial repeater network. The STA
request was granted on September 17, 2001, along with subsequent STA
requests through October 2006, which were granted per the
specifications in Sirius' request. On October 13, 2006, Sirius
informed Commission staff that eleven of these terrestrial repeaters
had been operating at variance from their authorized specifications.
Sirius further informed the Commission that it had turned off these
repeaters, and filed requests for STA to authorize each of the
repeaters. The Bureau subsequently initiated an investigation in File
No. EB-06-SE-386 into Sirius' operation of its terrestrial repeaters.
III. TERMS OF AGREEMENT
4. Adopting Order. The Parties agree that the provisions of this Consent
Decree shall be subject to final approval by the Commission by
incorporation of such provisions by reference in the Adopting Order
without change, addition, modification, or deletion.
5. Jurisdiction. Sirius agrees that the Commission has jurisdiction over
it and the matters contained in this Consent Decree and has the
authority to enter into and adopt this Consent Decree.
6. Effective Date; Violations. The Parties agree that this Consent Decree
shall become effective on the date on which the FCC releases the
Adopting Order. Upon release, the Adopting Order and this Consent
Decree shall have the same force and effect as any other Order of the
Commission. Any violation of the Adopting Order or of the terms of
this Consent Decree shall constitute a separate violation of a
Commission Order, entitling the Commission to exercise any rights and
remedies attendant to the enforcement of a Commission Order, including
imposition of the maximum statutory forfeiture for any such
violations. Similar penalties shall be imposed for any violation of
the underlying rules at issue in this proceeding.
7. Termination of Investigation. In express reliance on the covenants and
representations in this Consent Decree and to avoid further
expenditure of public resources, the Commission agrees to terminate
its investigations and dismiss the complaints. In consideration for
the termination of said investigations and dismissal of the
complaints, Sirius agrees to the terms, conditions, and procedures
contained herein. The Commission further agrees that in the absence of
new material evidence, the Commission will not use the facts developed
in these investigations through the Effective Date of the Consent
Decree, or the existence of this Consent Decree, to institute, on its
own motion, any new proceeding, formal or informal, or take any action
on its own motion against Sirius concerning the matters that were the
subject of the investigations or with respect to Sirius' basic
qualifications, including its character qualifications, to be a
Commission licensee or hold Commission authorizations, provided,
however, that the Commission may consider the facts in this proceeding
in any future proceeding involving violations by Sirius of the same
rules at issue in this proceeding or involving misrepresentation or
lack of candor by Sirius in its dealings with the Commission.
8. Terrestrial Repeaters. The Commission, as of the Effective Date, shall
grant Sirius' request for STA to operate for a period of thirty (30)
days those repeaters which varied slightly from what it was originally
authorized to do listed in Attachment E. Concurrently, the Commission
shall place on public notice Sirius' request for STA to operate for a
period of 180 days those repeaters which varied slightly from what
they were originally authorized to do listed in Attachment E. With
respect to those repeaters listed in Attachment F, Sirius may return
these repeaters to operation provided that they are first brought into
compliance with the specifications that were originally authorized.
The pending requests filed by Sirius for STA to operate the repeaters
listed in Attachment F for 30 days and, separately, to operate these
repeaters for 180 days will be dismissed as of the Effective Date such
that no repeaters in Attachment F shall be permitted to operate if
they have not come into compliance.
9. Compliance Plan. For purposes of settling the matters set forth
herein, Sirius agrees to implement a Compliance Plan related to
future compliance with the Act, the Commission's Rules, and the
Commission's Orders. Sirius will submit a copy of the Compliance Plan
to the Bureau by September 1, 2008. The Plan will include, at a
minimum, the following components:
a. FCC Compliance Officer. Sirius will hire an FCC Compliance Officer,
who will be responsible for overseeing the FCC-related aspects of the
company's operations, ensuring Sirius' compliance with all FCC Rules,
and serving as point of contact for Sirius management, employees, FCC
staff, and the public with reference to Sirius' FCC regulatory
compliance. The FCC Compliance Officer will report directly to Sirius'
Senior Vice President, Internal Audit, who, in turn, will report to
the Audit Committee of Sirius' Board of Directors.
b. Equipment Design and Certification. By September 1, 2008, Sirius will
adopt a Procedural Guide for satellite radio receivers ("Procedural
Guide") establishing step-by-step procedures that Sirius employees
must follow in connection with testing and obtaining FCC certification
of any new radio receivers, as well as making any modifications to
existing radio receivers where such changes may implicate FCC rules or
certifications. Sirius will submit a copy of the Procedural Guide to
the Bureau within five days of its adoption. In addition, Sirius will
implement the following internal procedures related to equipment
design and certification for radios intended to be sold at retail: (i)
the FCC Compliance Officer will have ultimate responsibility over FCC
testing and certification; (ii) authority over the design and
manufacture of Sirius radio receivers will be separated from authority
over FCC testing and certification for those radio receivers; (iii)
prior to commencing manufacturing of commercial quantities of any
devices governed by FCC rules, the FCC Compliance Officer will be
required to certify directly to Sirius' Chief Executive Officer and
General Counsel that such device has been designed to comply with
those rules; and (iv) the FCC Compliance Officer will supervise the
audit of randomly selected radio receivers manufactured for retail
distribution in order to help ensure the continued compliance of those
devices with FCC rules.
c. Modification of Vendor Agreements. Sirius will ensure that all new
agreements it enters into with vendors to manufacture radio receivers
specifically require that such devices be manufactured in accordance
with specifications provided or approved by Sirius and in compliance
with applicable FCC rules. All existing agreements will be conformed
to similarly ensure that devices are manufactured in accordance with
specifications provided or approved by Sirius and in compliance with
applicable FCC rules.
d. Repeater Licensing and Modifications. To ensure its compliance with
FCC rules relating to its terrestrial repeaters, Sirius will adopt a
Repeater Change Guide establishing procedures to be followed before
any changes can be made to Sirius' terrestrial repeater network,
including adding any new repeater sites or making changes to existing
repeaters. Sirius will submit a copy of the Repeater Change Guide to
the Bureau by September 1, 2008. Pursuant to the Repeater Change
Guide, any construction or other changes to Sirius' repeater network
must be approved in advance by Sirius' Senior Vice President,
Engineering, and the FCC Compliance Officer. If the FCC Compliance
Officer determines that FCC approval is needed before a change is
made, no construction or modification may be made until such FCC
approval is received, and pursuant to the direction of Sirius' Senior
Vice President, Engineering, and the FCC Compliance Officer.
e. Compliance Training Program. Sirius will establish an FCC Compliance
Training Program for all current employees who engage in activities
subject to FCC regulation. The training program will be developed and
fully implemented no later than December 1, 2008. Sirius will conduct
refresher training programs for relevant employees at least annually
and will train relevant new employees within 90 days of their
employment.
10. Voluntary Contribution. Sirius agrees that it will make a voluntary
contribution to the United States Treasury in the amount of
$2,200,000. The payment will be made within thirty (30) days after the
Effective Date. The payment must be made by check or similar
instrument, payable to the Order of the Federal Communications
Commission. The payment must include the Account Number and FRN Number
referenced in the caption to the Adopting Order. Payment by check or
money order may be mailed to Federal Communications Commission, P.O.
Box 979088, St. Louis, MO 63197-9000. Payment by overnight mail may be
sent to U.S. Bank - Government Lockbox #979088, SL-MO-C2-GL, 1005
Convention Plaza, St. Louis, MO 63101. Payment by wire transfer may be
made to ABA Number 021030004, receiving bank TREAS/NYC, and account
number 27000001. For payment by credit card, an FCC Form 159
(Remittance Advice) must be submitted. When completing the FCC Form
159, enter the Account number in block number 23A (call sign/other
ID), and enter the letters "FORF" in block number 24A (payment type
code). Sirius will also send electronic notification on the date said
payment is made to Kathy Berthot at Kathy.Berthot@fcc.gov.
11. Waivers. Sirius waives any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or
to otherwise challenge or contest the validity of this Consent Decree
and the Order adopting this Consent Decree, provided the Commission
issues an Order adopting the Consent Decree without change, addition,
modification, or deletion. Sirius shall retain the right to challenge
Commission interpretation of this Consent Decree or any terms
contained herein. If either Party (or the United States on behalf of
the Commission) brings a judicial action to enforce the terms of the
Adopting Order, neither Sirius nor the Commission shall contest the
validity of this Consent Decree or the Adopting Order, and Sirius
shall waive any statutory right to a trial de novo. Sirius hereby
agrees to waive any claims it may otherwise have under the Equal
Access to Justice Act, 5 U.S.C. S: 504 and 47 C.F.R. S: 1.1501 et
seq., relating to the matters addressed in this Consent Decree.
12. Radio Receivers. The Commission will allow operation of the Radio
Receivers that have been sold or distributed on or before the
Effective Date. With regard to these existing Radio Receivers, Sirius
will undertake the following efforts:
a. With respect to potentially non-compliant Radio Receivers purchased by
a consumer but activated after the Effective Date, Sirius will use
reasonable efforts to identify such consumers, and shortly after such
consumer contacts the company to activate such device, offer such
consumer the choice, as appropriate, of: (i) in the case of consumers
using an FM-Out Switched Radio, an "FM extender" device, which has
been evaluated by the OET; (ii) in the case of consumers using an
FM-Out Unswitched Radio, an "attenuator plug," which has also been
evaluated by the OET; (iii) a cassette tape adapter usable with
potentially non-compliant Radio Receivers; (iv) a direct audio
connection cable; or (v) a coupon redeemable at no charge to the
consumer for a directly connected antenna switchbox with professional
installation. Sirius will deliver to such consumers one of the above
referenced solutions and a written communication to explain the
benefits to consumers.
b. Within seven (7) business days of the Effective Date, Sirius will
commence sending notices to, and make substantial progress towards
notifying, by U.S. or electronic mail, all Sirius subscribers with
Radio Receivers as of the Effective Date one of the notices described
below. The notice will inform subscribers that the subscriber's Radio
Receiver may not be in compliance with FCC Rules and it may interfere
with others' FM radio reception. The notice will direct subscribers to
a website or a toll-free customer service number for further
information.
i. Sirius subscribers with an FM-Out Switched Radio will receive a notice
in substantially the form included in Attachment A offering each
subscriber the choice of: (1) an "FM extender" device; (2) a cassette
tape adapter usable with potentially non-compliant radio receivers; (3)
a direct audio connection cable; or (4) a coupon redeemable at no
charge to the subscriber for a directly connected antenna switchbox
with professional installation;
ii. Sirius subscribers with an FM-Out Unswitched Radio will receive a
notice in substantially the form included in Attachment B offering
each subscriber the choice of: (1) an "attenuator plug"; (2) a
cassette tape adapter usable with potentially non-compliant radio
receivers; or (3) a direct audio connection cable; and,
iii. Sirius subscribers with Other Radios will receive a notice in
substantially the form included in Attachment C offering each
subscriber the choice of: (1) a cassette tape adapter usable with
potentially non-compliant radio receivers; or (2) a direct audio
connection cable.
Each such notice will also contain a hyperlink or an address to a website
maintained by Sirius that allows subscribers to search for open FM
frequencies by zip code. Distribution to subscribers of these solutions
will be effected based upon subscriber responses and will begin within
five (5) business days following receipt by Sirius, or a third party
retained by Sirius, of the solutions.
c. Sirius will also provide such notices to subscribers via its website,
subscriber newsletter and automated telephone response.
d. Sirius will cause all non-compliant radio receivers returned by
consumers for repair or warranty claims to be replaced with compliant
devices.
e. Within seven (7) business days of the Effective Date, Sirius will
begin broadcasting an on-air notice regarding the Radio Receivers on a
daily basis on high listenership news, talk and entertainment
programming selected by Sirius. Sirius will continue such on-air
notices for three (3) months after the Effective Date. The Commission
shall have the option of extending the on-air notice requirement for
three additional months by notifying Sirius in writing of the need for
such an extension one week prior to the termination of the initial
three month period. The on-air notice shall contain in substantial
form the information in Attachment D.
13. Marketing of Radio Receivers. Sirius agrees that every radio receiver
that is marketed by Sirius in the United States on or after the
Effective Date of this Consent Decree shall be designed to be
compliant with Section 302(b) of the Act and Parts 2 and 15 of the
Rules.
14. Compliance Reports. Sirius will file compliance certifications and
reports with the Commission as follows:
a. Beginning on September 1, 2008, and continuing at three-month
intervals thereafter until the expiration of this Consent Decree,
Sirius shall provide a report detailing:
i. to its knowledge, the total number of Radio Receivers that remain
activated as of the most recent date on which that information is
available to Sirius;
ii. the status of its compliance efforts set forth in paragraph 12 and a
certification that Sirius has provided the notices required in
paragraph 12(b); and
iii. any changes in the technical parameters at which its terrestrial
repeaters are operating.
b. Each report shall include a compliance certificate from Sirius' Senior
Vice President, Engineering, as an agent of Sirius, stating that the
officer has personal knowledge that Sirius has established and
implemented operating procedures intended to ensure compliance with
this Consent Decree, together with an accompanying statement
explaining the basis for the officer's compliance certification. All
compliance reports shall be submitted to the Chief, Spectrum
Enforcement Division, Enforcement Bureau, Federal Communications
Commission, 445 12th Street, S.W., Washington, D.C. 20554. All reports
shall also be submitted electronically to Kathy Berthot at
Kathy.Berthot@fcc.gov.
15. Termination Date. Except with respect to paragraph 9(e), the
requirements of this Consent Decree will expire five (5) years after
the Effective Date.
16. Severability. The Parties agree that if any of the provisions of the
Adopting Order or this Consent Decree shall be invalid or
unenforceable, such invalidity or unenforceability shall not
invalidate or render unenforceable the entire Adopting Order or
Consent Decree, but rather the entire Adopting Order or Consent Decree
shall be construed as if not containing the particular invalid or
unenforceable provision or provisions, and the rights and obligations
of the Parties shall be construed and enforced accordingly. In the
event that this Consent Decree in its entirety is rendered invalid by
any court of competent jurisdiction, it shall become null and void and
may not be used in any manner in any legal proceeding.
17. Subsequent Rule or Order. The Parties agree that if any provision of
this Consent Decree conflicts with any subsequent rule or Order
adopted by the Commission (except an Order specifically intended to
revise the terms of this Consent Decree to which Sirius does not
expressly consent) that provision will be superseded by such
Commission rule or Order.
18. Successors and Assigns. Sirius agrees that the provisions of this
Consent Decree shall be binding on its successors, assigns, and
transferees.
19. Final Settlement. The Parties agree and acknowledge that this Consent
Decree shall constitute a final settlement between the Parties. The
Parties further agree that this Consent Decree does not constitute
either an adjudication on the merits or a factual or legal finding or
determination regarding any compliance or noncompliance with the
requirements of the Act or the Commission's Rules and Orders,
provided, however, that the Commission may consider the facts in this
proceeding in any future proceeding involving violations by Sirius of
the same rules at issue in this proceeding or involving
misrepresentation or lack of candor by Sirius in its dealings with the
Commission. The Parties agree that this Consent Decree is for
settlement purposes only and that by agreeing to this Consent Decree,
Sirius does not admit or deny noncompliance, violation or liability
for violating the Act or Rules in connection with the matters that are
the subject of this Consent Decree.
20. Modifications. This Consent Decree cannot be modified without the
advance written consent of both Parties.
21. Paragraph Headings. The headings of the Paragraphs in this Consent
Decree are inserted for convenience only and are not intended to
affect the meaning or interpretation of this Consent Decree.
22. Authorized Representative. Each party represents and warrants to the
other that it has full power and authority to enter into this Consent
Decree.
23. Counterparts. This Consent Decree may be signed in any number of
counterparts (including by facsimile), each of which, when executed
and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
________________________________
Marlene H. Dortch
Secretary
Federal Communications Commission
________________________________
Date
________________________________
Patrick L. Donnelly
Executive Vice President, General Counsel and Secretary
Sirius Satellite Radio Inc.
________________________________
Date
ATTACHMENT A
[DATE], 2008
<Address1>
<Address2>
<City,> <State> <ZIP>
Dear <fname>:
Your Sirius radio contains an FM transmitter that allows it to operate
wirelessly through your car FM radio. We have determined that the
output of this transmitter exceeds the limits established by the
Federal Communications Commission (FCC). As a result, the unit may
interfere with the performance of radios operating in areas adjacent
to your radio. There are no health or safety concerns associated with
this issue.
* If you listen to your Sirius radio wirelessly through your
vehicle's FM radio, then please review the solutions listed below
and select the one that works best for you. Sirius will provide
you the best solution at no cost.
* If you use your Sirius radio only when docked in a boombox, or
directly connected to your car radio or home stereo using audio
cables or a cassette tape adapter, then no interference can occur
and no further action is required, provided you have turned off
your FM transmitter. To turn off the FM transmitter, first press
the MENU button. Use the channel up/down buttons to highlight "FM
Transmitter" and push the SELECT button. Use the channel up/down
buttons to highlight the "FM On/Off" menu item and then press the
SELECT button. Use the up/down buttons to highlight "FM Off" and
press the SELECT button. To exit the "FM On/Off" menu, press the
MENU button. Use the same procedure to turn off the FM
transmitter if you use Solution 1 or Solution 2 below..
Solution 1 - Direct Wired Audio Connection: If your vehicle radio has
a "LINE IN" or "AUX IN" jack, you can use a stereo cable to connect
directly to your Sirius radio. This solution is the easiest to install
and provides the best audio performance. Many newer vehicles provide
the required audio input jack. It will normally be found on or near
the front faceplate of your vehicle's radio.
Solution 2 - Cassette Tape Adapter: If your vehicle has a cassette
tape player, you can use a cassette adapter that allows you to play
your Sirius radio through the cassette portion of your vehicle radio.
The adapter slips into your vehicle radio as easily as a cassette tape
and provides better performance than a wireless connection.
Solution 3 - FM Extender Cable Kit: An FM extender cable will provide
a special transmitter antenna that allows you obtain the best audio
performance through your vehicle's FM radio. This solution is easy to
self-install, but does require that an easy-to-hide wire be run in
your vehicle so the transmitter antenna can be placed in close
proximity to your vehicle's radio antenna. Using this FM Extender
Cable Kit, you will continue to use your Sirius radio exactly the same
way as you do currently.
Solution 4 - FM Direct Adapter with Professional Installation: An FM
Direct Adapter provides a wired connection between your SIRIUS radio
and your vehicle's radio. You will continue to listen to your SIRIUS
radio through the FM tuner of your car radio, but the FM Direct
Adapter eliminates the outside static and interference you sometimes
experience when using a wireless FM connection. This solution usually
requires professional installation. We will provide a certificate
redeemable for installation at an installation center in your area.
Please go to optimize.sirius.com and select the solution that works
best for you. <ADDITIONAL PROCESS DETAIL TO BE INSERTED HERE WHEN
FINALIZED> If you have any questions, please call <(###) ###-####>.
Detailed instructions will be included with your solution.
You will improve the performance of your Sirius radio and reduce the
potential for interfering with adjacent radios if you properly tune
your FM transmitter. Please see the enclosed FM Transmitter Set-Up
Tips for more information.
We are sorry for this inconvenience. We are confident these solutions
will allow you to continue to enjoy the great music, news, sports and
entertainment that only Sirius Satellite Radio can offer with no
impact on your radio's performance.
Sincerely,
SIRIUS SATELLITE RADIO
ATTACHMENT C
[DATE], 2008
<Contact fname> <Contact lname>
<Title>
<Address1>
<Address2>
<City,> <State> <ZIP>
Dear <fname>:
Your Sirius radio contains an FM transmitter that allows it to operate
wirelessly through your car FM radio. We have determined that the
output of this transmitter exceeds the limits established by the
Federal Communications Commission (FCC). As a result, the unit may
interfere with the performance of radios operating in areas adjacent
to your radio. There are no health or safety concerns associated with
this issue.
* If you listen to your Sirius radio wirelessly through your
vehicle's FM radio, then please review the solutions listed below
and select the one that works best for you. Sirius will provide
you the best solution at no cost.
* If you use your Sirius radio only when docked in a boombox, or
directly connected to your car radio or home stereo using audio
cables or a cassette tape adapter, then no interference can occur
and no further action is required, provided you have turned off
your FM transmitter. To turn off the FM transmitter, first press
the MENU button. Use the channel up/down buttons to highlight "FM
Transmitter" and push the SELECT button. Use the channel up/down
buttons to highlight the "FM On/Off" menu item and then press the
SELECT button. Use the up/down buttons to highlight "FM Off" and
press the SELECT button. To exit the "FM On/Off" menu, press the
MENU button. Use the same procedure to turn off the FM
transmitter if you use Solution 1 or Solution 2 below.
Solution 1 - Direct Wired Audio Connection: If your vehicle radio has
a "LINE IN" or "AUX IN" jack, you can use a stereo cable to connect
directly to your Sirius radio. This solution is the easiest to install
and provides the best audio performance. Many newer vehicles provide
the required audio input jack. It will normally be found on or near
the front faceplate of your vehicle's radio.
Solution 2 - Cassette Tape Adapter: If your vehicle has a cassette
tape player, you can use a cassette adapter that allows you to play
your Sirius radio through the cassette portion of your vehicle radio.
The adapter slips into your vehicle radio as easily as a cassette tape
and provides better performance than a wireless connection.
Solution 3 - Attenuator Plug: If your vehicle does not have an AUX IN
or LINE IN jack, you can use a special plug from Sirius to be inserted
into the FM OUT jack on your receiver. The plug will reduce the signal
radiated by the FM transmitter by an amount sufficient to reduce the
potential for the receiver to cause interference to other receivers.
Please go to optimize.sirius.com and select the solution that works
best for you. <ADDITIONAL PROCESS DETAIL TO BE INSERTED HERE WHEN
FINALIZED> If you have any questions, please call <(###) ###-####>.
Detailed instructions will be included with your solution.
You will improve the performance of your Sirius radio and reduce the
potential for interfering with adjacent radios if you properly tune
your FM transmitter. Please see the enclosed FM Transmitter Set-Up
Tips for more information.
We are sorry for this inconvenience. We are confident these solutions
will allow you to continue to enjoy the great music, news, sports and
entertainment that only Sirius Satellite Radio can offer with no
impact on your radio's performance.
Sincerely,
SIRIUS SATELLITE RADIO
ATTACHMENT C
[DATE], 2008
<Contact fname> <Contact lname>
<Title>
<Address1>
<Address2>
<City,> <State> <ZIP>
Dear <fname>:
Your Sirius radio contains an FM transmitter that allows it to operate
wirelessly through your car FM radio. We have determined that the
output of this transmitter exceeds the limits established by the
Federal Communications Commission (FCC). As a result, the unit may
interfere with the performance of radios operating in areas adjacent
to your radio. There are no health or safety concerns associated with
this issue.
* If you listen to your Sirius radio wirelessly through your
vehicle's FM radio, then please review the solutions listed below
and select the one that works best for you. Sirius will provide
you the best solution at no cost.
* If you use your Sirius radio only when docked in a boombox, or
directly connected to your car radio or home stereo using audio
cables or a cassette tape adapter, then no interference can occur
and no further action is required, provided you have turned off
your FM transmitter. To turn off the FM transmitter, first press
the MENU button. Use the channel up/down buttons to highlight "FM
Transmitter" and push the SELECT button. Use the channel up/down
buttons to highlight the "FM On/Off" menu item and then press the
SELECT button. Use the up/down buttons to highlight "FM Off" and
press the SELECT button. To exit the "FM On/Off" menu, press the
MENU button. Use the same procedure to turn off the FM
transmitter if you use Solution 1 or Solution 2 below.
Solution 1 - Direct Wired Audio Connection: If your vehicle radio has
a "LINE IN" or "AUX IN" jack, you can use a stereo cable to connect
directly to your Sirius radio. This solution is the easiest to install
and provides the best audio performance. Many newer vehicles provide
the required audio input jack. It will normally be found on or near
the front faceplate of your vehicle's radio.
Solution 2 - Cassette Tape Adapter: If your vehicle has a cassette
tape player, you can use a cassette adapter that allows you to play
your Sirius radio through the cassette portion of your vehicle radio.
The adapter slips into your vehicle radio as easily as a cassette tape
and provides better performance than a wireless connection.
Please go to optimize.sirius.com and select the solution that works
best for you. <ADDITIONAL PROCESS DETAIL TO BE INSERTED HERE WHEN
FINALIZED> If you have any questions, please call <(###) ###-####>.
Detailed instructions will be included with your solution.
You will improve the performance of your Sirius radio and reduce the
potential for interfering with adjacent radios if you properly tune
your FM transmitter. Please see the enclosed FM Transmitter Set-Up
Tips for more information.
We are sorry for this inconvenience. We are confident these solutions
will allow you to continue to enjoy the great music, news, sports and
entertainment that only Sirius Satellite Radio can offer with no
impact on your radio's performance.
Sincerely,
SIRIUS SATELLITE RADIO
ATTACHMENT D
(Queen-Bohemian Rhapsody)
We want our Sirius to sound the best it can
How to do it? How to do it?
Should we do some hard wiring?
Static can be frightening, the buzz is terrifying here
Modulator? Or adapter?
Plug directly? What's that clatter?
Let me knoooooow..
(Music under)
(ANN) SIRIUS WANTS TO HELP YOU GET THE CLEAREST SOUND OUT OF YOUR
RADIO AND THE BEST WAY TO DO IT IS WITH A DIRECT CONNECTION.. GO TO
SIRIUS DOT COM SLASH (xx) OR CALL 888-888-8888 AND SPEAK TO ONE OF OUR
SIRIUS CUSTOMER REPRESENTATIVES FOR DETAILS ON MAKING THE BEST RADIO
ON RADIO SOUND EVEN BETTER.
(I can see clearly now)
I can hear clearly now the static's gone..
I can hear everything as clear as day
(ANN) SIRIUS WANTS TO HELP YOU GET THE CLEAREST SOUND OUT OF YOUR
RADIO AND THE BEST WAY TO DO IT IS WITH A DIRECT CONNECTION.. GO TO
SIRIUS DOT COM SLASH (xx) OR CALL 888-888-8888 AND SPEAK TO ONE OF OUR
SIRIUS CUSTOMER REPRESENTATIVES FOR DETAILS ON MAKING THE BEST RADIO
ON RADIO SOUND EVEN BETTER.
ATTACHMENT E
Location
1. Pebble Beach, CA
2. Wilmington, DE
ATTACHMENT F
Location
1. Akron, OH
2. Atlanta, GA
3. Greensboro, NC
4. Harrisburg, PA
5. Knoxville, TN
6. Lansing /Detroit, MI
7. Monterey, CA
8. Orlando, FL
9. Philadelphia, PA
STATEMENT OF
CHAIRMAN KEVIN J. MARTIN
Re: Sirius Satellite Radio Inc.
Re: XM Radio, Inc.
The Commission has longstanding technical rules regarding the
marketing of equipment, including FM modulators, and the construction
and operation of terrestrial repeaters pursuant to Special Temporary
Authority. These rules serve important consumer protection and
competitive goals. As I have said before, the Commission takes a
licensee's obligation to comply with our rules very seriously and will
not tolerate non-compliance.
In order to resolve the Commission's investigation into whether these
license holders were violating the Commission's technical requirements
regarding FM modulators, as well as our rules regarding the
construction and operation of terrestrial repeaters, the two companies
have agreed to undertake significant corrective actions and implement
various reforms to ensure future compliance with the Commission's
rules. They also have agreed to make significant contributions to the
U.S. Treasury totaling nearly $19.6 million.
In reaching a conclusion to these investigations, the apparently
intentional nature of some of the violations was troubling. Indeed,
the ability and willingness to conform one's conduct to the
requirements of the Commission's rules are central to the
qualifications of any Commission licensee. On balance, however, the
public's interest in the continued availability and viability of
satellite radio services and the impact on the public and other
licensees that the violations precipitated, taken together with the
rigorous oversight and reporting obligations and substantial voluntary
contribution, persuade me that settlement of these matters would best
serve the public interest.
Through this strong enforcement action that we take today, the
Commission has provided clear guidance to the licensees that we expect
them to conform their conduct to the Commission's rules and sends a
strong message that we will not tolerate non-compliance.
STATEMENT OF
COMMISSIONER JONATHAN S. ADELSTEIN
Re: Sirius Satellite Radio Inc.
Re: XM Radio, Inc.
Today, we approve one of the largest voluntary contributions ever
agreed upon by the Commission for violations of Commission rules. XM
and Sirius have agreed to pay a total amount of $19.5 million for
their intentional and repeated violations of rules intended to protect
other licensees and the public. The brazen nature of these violations
indeed warrants this substantial monetary contribution and rigorous
oversight and reporting obligations.
It is my hope that the Commission will vigorously enforce all elements
of today's Order and Consent Decree, but history suggests otherwise.
In April and June 2006, the Commission launched an investigation into
alleged noncompliant XM and Sirius satellite radio devices; and that
fall, the Commission learned about widespread unauthorized use of
terrestrial repeaters. XM, for example, had constructed and was
operating 479 unauthorized or variant repeaters. In light of such
unprecedented violations, it is stunning that the Commission was
poised to approve the merger of XM and Sirius before resolving these
enforcement matters. It is inconceivable to me that we would even
consider approving such a merger with such a large and serious number
of outstanding violations unresolved. That would have never crossed
our minds if the transactions involved terrestrial broadcasters. I
commend my colleague, Commissioner Tate, for insisting that we
conclude enforcement action prior to concluding the merger
transaction.
In the same vein, I am discouraged that the Commission has not yet
decided the interference issues between the SDARS and Wireless
Communications Service ("WCS") in the 2.3 GHz band. That these issues
have been before the Commission for over a decade is completely
unacceptable. This enforcement action implicates a number of
transmitters that are now operating with special temporary authority
(STAs). These STAs would no longer be necessary, and they could
operate under regular authorization, if this matter were resolved. It
should have been done before or concurrent with this enforcement
matter, and certainly before the merger was approved. The longer we
delay implementing rules governing the coexistence of SDARS and WCS,
the longer we delay WCS rollout of critical wireless broadband
services to rural, unserved and underserved areas. It is not enough to
talk about rural broadband deployment. We need to do something about
it. Here, we are in fact standing in the way. We need to act, and do
so in a way which promotes broadband and protects listeners of
satellite radio. Today, I urge my colleagues to determine final
technical rules so that WCS licensees can manufacture compliant
equipment and devices.
STATEMENT OF
COMMISSIONER DEBORAH TAYLOR TATE
Re: Sirius Satellite Radio Inc.
Beginning in 1927 with its predecessor, one of the core purposes for
the Federal Communications Commission was to ensure that licensees
operate in accordance with technical specifications of their license.
Adherence to Commission authorizations ensures that all spectrum
licensees can make efficient use of the bandwidth they have been
allocated. That is why I felt it imperative to resolve these
outstanding enforcement issues before moving to consideration of this
merger.
The licensee that is the subject of today's voluntary forfeiture and
consent decree failed to comply-knowingly and repeatedly-with the
specifications for its FM modulators and the terms of its Special
Temporary Authorizations ("STAs") for more than five years. I believe
the Consent Decree we adopt today reflects the gravity of the
violations, and the seriousness with which I view them.
Sirius has agreed to a voluntary contribution of $2,200,000 for
operating terrestrial repeaters at variance from their specification,
and authorizing non-compliant FM modulators. In addition, Sirius has
entered into a consent decree that mandates strict compliance with
certifications, reporting requirements, and penalties associated with
future violations. Specifically, Sirius has agreed to the following:
sB A Compliance Plan to remain in effect for five (5) years, requiring
reporting every three (3) months- almost twice the FCC's customary
compliance plan period.
* Hire FCC Compliance Officer responsible for ensuring future
compliance with Act and Commission rules;
* Adopt Procedural Guide establishing procedures for testing,
certifying and making modifications to satellite radio receivers
and Repeater Change Guide establishing procedures for making any
changes to terrestrial repeater network;
* Conduct audits of randomly selected satellite radio receivers to
ensure compliance;
* Establish an FCC Compliance Training Program for all employees
who engage in activities subject to FCC regulation;
* Provide notices to subscribers offering various technical fixes
to non-compliant radio receivers at no cost to subscriber via its
website, subscriber newsletter and automated telephone response;
* Broadcast on-air notices to subscribers regarding non-compliant
radio receivers;
* Replace non-compliant radio receivers returned by consumers for
repair or warranty claims with compliant devices; and
* Submit periodic compliance reports to FCC.
With regard to terrestrial repeaters, the Commission shall grant
Sirius' request for a Special Temporary Authority ("STA") to operate
for thirty days those repeaters which varied slightly from their
original authorization. Concurrently, the Commission shall place on
public notice Sirius' request for an STA to operate those repeaters
for a period of 180 days.
Administration of effective spectrum policy requires that licensees
comply with Commission rules and that the Commission is vigilant in
its oversight. This will foster a level playing field for competition
and encourage technological innovation. The American public requires
and deserves no less.
47 U.S.C. S: 302a(b).
47 C.F.R. S: 2.1 et seq. and S: 15.101 et seq.
47 C.F.R. S: 25.120.
47 U.S.C. S: 154(i).
47 U.S.C. S: 302a(b).
47 C.F.R. S:S: 2.1 et seq. and 15.1 et seq.
47 C.F.R. S: 25.120.
Letter from Kathryn S. Berthot, Deputy Chief, Spectrum Enforcement
Division, Enforcement Bureau, to Patrick L. Donnelly, Executive Vice
President and General Counsel, Sirius Satellite Radio Inc. (June 20,
2006) ("June 20, 2006 LOI").
47 U.S.C. 302a(b).
47 C.F.R. S:S: 2.1 et seq. and 15.1 et seq.
See June 20, 2006 LOI.
Establishment of Rules and Policies for the Digital Audio Radio
Satellite Service in the 2310-2360 MHz Frequency Band, Report and
Order, Memorandum Opinion and Order and Further Notice of Proposed
Rulemaking, 12 FCC Rcd 5745, 5810 (1997).
See File Nos. SAT-STA20020312-00029, SAT-STA-20030827-00299,
SAT-STA-20020827-0248, SAT-STA-20020827-00162, SAT-STA-20020222-00028,
SAT-STA-20031106-00370.
See File No. SAT-STA-20010724-00064 (granted September 17, 2001).
See File Nos. SAT-STA-20061013-00121 and SAT-STA-20061013-00122.
See SAT-STA-20061013-00122. The conditions for all 30-day STA grants
shall include but are not limited to:
1. Any actions taken as a result of this STA are solely at the
applicant's own risk. This STA shall not prejudice the outcome of the
final rules adopted by the Commission in IB Docket No. 95-91. The
issue concerning EIRP raised by the WCS Coalition will be addressed in
that proceeding. Operations prior to such action will be subject to
condition 2 below.
2. Operation of all SDARS repeaters authorized pursuant to this STA is
on a non-interference basis with respect to all permanently authorized
radiocommunication facilities. The operator shall provide the
information and follow the process set forth in paragraphs 14 and 17
in 16 FCC Rcd 16773 (Int'l Bur. 2001) and 16 FCC Rcd 16781 (Int'l Bur.
2001), as modified by 16 FCC Rcd 18481 (Int'l Bur. 2001) and 16 FCC
Rcd 18484 (Int'l Bur. 2001).
See SAT-STA-20061013-00121. These repeaters in Attachment F are a
subset of the STA requests made by Sirius on October 13, 2006. The
same conditions noted above would apply to any 180-day STA, if
granted.
Electronic mail notices will be sent to all subscribers for whom
Sirius has electronic mail addresses. All other notices will be sent
by U.S. mail, postage prepaid.
Federal Communications Commission FCC 08-176
20
Federal Communications Commission FCC 08-176
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