In the Know — July 31, 2008

What’s New:

Network Neutrality

FCC Approves XM/Sirius Merger

As you may have heard, the FCC approved the merger of XM and Sirius Satellite Radio this week, paving the way for Sirius XM Radio, a satellite radio provider with over 18.5 million subscribers. Here are a few quick thoughts from Public Knowledge on the final merger conditions:

  • We are pleased that the Commission has largely adopted all of the conditions we asked for and that it has added others that will ensure that the merger is in the public interest.

  • We are disappointed that the Commission chose to measure the set-aside by full-time audio channels rather than the entire spectrum capacity. This permits the new company to reduce its obligation by using more of its channel capacity for video and data channels.

  • We would like the Commission to clarify that third party manufacturers of satellite radio devices do not have to undergo testing by the combined company and that quality and assurance review by an independent testing body is sufficient.

  • Even though the Commission did not require an independent “monitor trustee” or “corporate compliance officer” to oversee implementation of the conditions, we appreciate the Commission’s clear statement that the conditions are “fully enforceable by the Commission.”

While many in the public advocacy community opposed the merger outright, Public Knowledge realized that the merger had a strong chance of being approved and worked throughout the process to ensure that public interest conditions would be attached. Thanks to these public interest conditions, the formation of Sirius XM Radio will present a number of exciting possibilities for customers of both companies. As Public Knowledge President and Co-Founder Gigi Sohn puts it, “Consumers will be better off than had the merger been granted without any conditions.” Thanks to all of you for supporting us and for making your voices heard during the merger process!

For more on the XM Sirius merger, see this statement from Public Knowledge President and Co-Founder, Gigi Sohn

Comcast Complaint

FCC Decision on Comcast Due This Friday

On Friday, the FCC will conclude its investigation into cable provider Comcast’s throttling of BitTorrent traffic. The FCC is widely expected to rule against Comcast, thereby enforcing the nondiscrimination principles outlined in its 2005 Internet Policy Statement. Such a ruling would represent the first affirmation of the rights of Internet users by the FCC since Internet services were exempted from the protections of the Communications Act in 2005 and could mark the beginning of active FCC involvement in issues relating to Net Neutrality. At the very least, it will serve as a warning to any other Internet service providers who are considering deploying similar technologies in their networks. Many thanks are due to the public interest groups, companies, academics and policymakers who have worked tirelessly for years to drum up support for a neutral Internet.

For more on the FCC’s impending decision on Comcast, see this blog post.

Related issues: Broadband | Comcast | Network Neutrality