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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.