FCC: Commercial Satellite Services Sector Continues to Benefit U.S. Consumers
FCC Chairman Kevin Martin (FCC Photo)
WASHINGTON DC, March 26, 2007 - Satnews Daily - The U.S. Federal Communications Commission (FCC) has reported to the U.S. Congress that the commercial satellite services sector continues to benefit U.S. consumers, government at all levels and American industry by providing important connectivity and ongoing technology innovation.
In its First Annual Report to Congress on the state of competition in the communications satellite services industry, the FCC examined six wholesale and two retail satellite services markets from 2000 to 2006.
The FCC found effective competition in the satellite markets it examined, based on a range of standard economic indicators commonly used to assess market concentration, conduct and performance. As the initial review of the satellite services sector, the report provides a brief outline of the history and structure of the industry, and identifies certain capacity and pricing aspects specific to the sector, and notes intermodal competition from terrestrial technologies. The report also discussed the commission's policies regarding foreign participants' entry into the U.S. market, and as well as U.S. companies' ability to access to certain foreign markets.
The FCC also made rulings affecting High Definition (HD) Radio and wireless Internet services sold by telecommunications companies. Further, the Commission supported a proposal to start a "notice of inquiry" regarding broadband industry practices.
The FCC has unanimously approved regulations that advance the radio industry’s roll out of HD Radio. The rules passed March 22 allow broadcasters to multicast side channels without prior approval from the commission. In addition, AM stations, which are currently limited to daytime-only HD broadcasting, will be allowed to go digital at night. No new public interest obligations were adopted.
The decision about HD multicasting has been delayed since last year when commissioners debated whether to impose some of the same public interest obligations to the side channels that apply to regular over-the-air. Over 1,200 radio stations now broadcast in HD Radio and over 550 stations multicasting side channels.
NAB president and CEO David Rehr said the association applauds chairman Kevin Martin and his FCC colleagues for taking a significant step in advancing the already budding HD Radio technology. "As HD Radio expands across America, we are hopeful the commission recognizes the unique role played by local radio and the considerable public service contributions voluntarily made by stations within their communities."
XM Satellite Radio, which is awaiting an FCC ruling about its proposed merger with Sirius Satellite Radio, said the decision ``demonstrates the growing competitiveness of the audio entertainment market.'' During hearings at Congress, XM and Sirius have repeatedly cited new forms of competition to satellite radio, such as HD radio, in its defense of the merger.
The FCC further eased rules on wireless Internet services sold by telecommunications companies including AT&T Inc. and Verizon Communications. The FCC ruling freed Internet access on hand-held devices from "commercial mobile radio service" rules that apply to wireless telephone services.
The ruling subjects all wireless Internet services to the same rules as landline broadband access offered by telephone companies and cable providers such as Comcast Corp. The FCC hopes the measure encourages more broadband investment by enabling wireless Internet carriers to compete on a level playing field with high-speed providers, Martin said.
On the other hand, the FCC’s "notice of inquiry" is meant to address a growing debate on whether high-speed Internet providers like AT&T Inc. and Comcast Corp. should be barred from charging extra fees to guarantee access to the Internet. Also called “net neutrality,” the idea of broadband providers treating all Internet content in the same way has been the subject of intense debate among lawmakers. Some fear that by charging extra fees for more reliable service, broadband providers would also be able to block access to the Internet.
It was also reported that Martin is opposed to lifting a ban on cellphone conversations inside aircraft in flight because of evidence these calls might interfere with calls on the ground. There is also little public support for allowing in-flight cellphone calls. A USA Today survey in 2005 found that 68 percent of respondents favored keeping the ban.
