Sirius/XM: Non-Commercial Programming - A Matter of National Security

One of the conditions for the proposed Sirius (SIRI) / XM Satellite Radio Merger (XMSR) is the set-aside of 4% of the spectrum for non-commercial programming without censorship. Many people think of this as educational programming, but there is a potential here for much more than just insightful education. 

Both Sirius and XM are participants in the National Alert System [NAS], which replaced the Emergency Broadcasting System in 1994.  However, the NAS has been found to be dangerously lacking. (See the article "National Alert System In Disarray".)

The EAS was not even used during the 9/11 attack and there have been several false alarms since it became operable.  In fact FEMA, after hurricane Katrina, have concluded that the ERS does not really meet their needs and are installing their own satellite-based distribution network. The CDC really has no formal method for warning the public of health emergencies, and relies on the news agencies to get the story out. 

The spectrum set-aside of 12 channels by the combined company presents a unique opportunity to serve the public in case of world, national, and local emergencies of all kinds.  Currently, it appears unless there is a serious need for the President to address the nation to warn of eminent danger the EAS is never used on a national basis.  Messages approved by the states governors, like weather and Amber alerts, are transmitted at the local level. 

In addition to education, some of the 12 non-commercial channels would be available for use by government agencies like FEMA, CDC, Department of Homeland Security, EPA Disaster Response, and the National Weather Service,  to name a few, in case of a widespread emergencies.  This would give the public a nation-wide and consistent distribution network for emergencies and emergency preparedness, perhaps making the need for additional networks like the one planned by FEMA unnecessary.  Since satellite radio will only be available to the subset of the population subscribing to it, other content providers like terrestrial radio could be able to rebroadcast the non-commercial channels. 

As an example, the public learned of the recent tomato salmonella poisoning from news agencies that happened to carry it, all with differing stories, as hundreds became sick and some died.  There have been many other similar food and over-the-counter drug poisonings. Perhaps many of these deaths could have been avoided with the network described. But, these problems will be miniscule when compared with a terrorist or bioterrorism attack, epidemic or pandemic, or natural terrestrial or extra-terrestrial disaster which could take the lives of hundreds of thousands as Katrina did, and displace millions.  

The FCC have a once in a lifetime opportunity to provide the public with a true national emergency and disaster preparedness system by approving the merger of the two companies. Perhaps this could even happen in time for it to be operable before the next Katrina or 9/11.

Disclosure: Author is LONG on Sirius.

Comments

[163888:]

Stan, nice article, now was that so hard.

2008 Jun 27 08:54 AM

[shure46:]

I have emailed Siri in the past and suggested they offer the government a few stations for propoganda or a military channel ....I figured the government would love that , and approve the merger quickly .......guess I was wrong , or maybe Siri didn't take my suggestion .......but to me , that would have been a good idea ...offer the guv a few channels for propoganda/patriotism .....then again , maybe they did , under the guise of "emergency broadcasting channels " ....but it didn't seem to help the merger go through any quicker ........Damn FCC

2008 Jun 27 09:08 AM

[Disappointe...:]

If there was a national emergency; if it was left to the FCC, we would have to wait 15 months for the announcment. And that is not Funny.

The FCC have failed the American people already, and still haven't voted on the merger. It is a shame that we Americans have a government agency that has nearly destroyed two American companies with their indecision. They Should All be Fired and Investigated!!!!

2008 Jun 27 09:09 AM

[cos1000:]

Stan.....Thanks for laying out a very useful way for the FCC to approve this merger and truly serve "The Public Interest".

2008 Jun 27 09:20 AM

[User 168418:]

STAN YOU ARE SO RIGHT.................... SAID THIS TO SIRIUS AND THE FCC OVER A YEAR AGO, BUT AM SO GLAD YOU BRING IT UP AGAIN IT'S A SELLING POINT. THANK YOU

2008 Jun 27 10:59 AM

[OldGaDawg:]

Now. Let's get'r done.....

OldGaDawg

2008 Jun 27 11:01 AM

[163888:]

shure46, and cos1000 responded to your post on the Tyler Savery article. cos XMSR financed another 400 million.

2008 Jun 27 11:04 AM

[willybob:]

I can't think of any other media that reaches 100% of the nation in a moving vehicle. Certainly satellite TV doesn't reach moving vehicles, and urban TV or radio doesn't reach urban and non-urban areas far distant from cities and towns. Satellite radio is a single point source for unifying data in the event of such an emergency, as you point out.

Your idea is a great one.

2008 Jun 27 12:39 PM

[willybob:]

Correction: I should have said "urban TV or radio doesn't reach areas far distant from cities and towns.."

2008 Jun 27 12:42 PM

[Teacher_Dude:]

As a teacher I must correct the misspelling of "dissapointed" - [disappointed]. However, I agree 100% with "Dissapointed American." This merger has taken too long. I see that BofA has already been approved to merge with Countrywide and that was only 5 months. WHY is it taking this long?

I watch as these two companies bleed and I can not understand how a commission is capable of allowing it to happen...they need to be replaced with competent individuals who will not use their positions as soapboxes.

2008 Jun 27 12:49 PM

[Mainah:]

What a Fantastic idea!!!!! Something We Need and the System is already in Place, Just Add Content!!!!!!

2008 Jun 27 02:40 PM

[Mainah:]

To Teacher Dude; Remember Countrywide Ceo was cleared of mis- conduct by Hearing before Senate. Now that BofA merged with countrywide they are being investigated for fraud, no foul? Right! Siri/Xm trying to bend over backwards to please and they keep getting their Heads Slamed into a Wall. Sometimes I wonder what makes our Elected Officials Tick!!!!!

2008 Jun 27 03:01 PM

[User 168418:]

SWEET POP UP 15% 27 CENTS A SHARE........WHAT GIVES? STOCK CLOSED $2.10 MAYBE FCC HAS SAID SOMETHING?

2008 Jun 27 05:17 PM

[cos1000:]

More like the pop is the shorts buying positions to lock in profits after a great week for them. Sorry to be a bummer, but the shorts don't want to go into the weekend vulnerable in case of an announcement. No announcement and the price sells off a bit on Monday / Tuesday. Cramer's made such a big deal of the end of the month, peoples expectations are too high.

2008 Jun 27 06:43 PM

[shure46:]

cos1000 , that makes sense to me ...thanks for bringing that up , I thought I may have missed an opportunity , but maybe I will give it a few days and see what happens ......I would like to grab a few siri shares cheap to get my average down , but I am frickin' gunshy on that mess ......I seem to have a negative effect when I buy that stock !!!!!!!! hahahahahah .....the more I buy , the more it tanks !!!!

2008 Jun 27 10:14 PM

[163888:]

cos1000, on the other article by Tyler I have a comment about what you said.

shure46, Dont count on seeing a 1.85 anytime soon IMO. I think it may end up if not stablize at above 2, if the market corrects a little.

2008 Jun 28 12:07 AM

[cos1000:]

shure46.....It always feels that way when investors buy and hold on a downward sloping 200 day MA. That's why technical investors who play the "channel" watch the 13 day MA for indications where the short term price movement is on the downward 200 day MA curve. It's not you it's momentum. 200 day tends to be company business plan execution, 13 day tends to be all the expectation and hype from the street. IMO

2008 Jun 28 10:09 AM

[cos1000:]

163888....You know I hope that you are right because I am Long SIRI also but, finally, we disagree. If there is an announcement here on the weekend or Monday, then you will be right and I will make money. Without an announcement, I just don't see this stock holding at above 2.00. Friday seems to be shorts taking profits in absence of news. No announcement we could see 1.75 -1.85. IMO

2008 Jun 28 10:14 AM

[shure46:]

it looks to me like the best buy would be to buy XM instead of Siri if the price holds or goes down a bit on both ....with the 4.6 exchange , XM looks damn good under 8 .....better than Siri at 1.85 .....of course merger approval needed to reap rewards .......hmmmmmm maybe that is why XM jumped .....I have a feeling someone has some inside info as usual on wall street .....the big boys always seem to beat us to the punch ever so slightly before any news hits the wires ....weird how that works

2008 Jun 28 12:31 PM

[russh:]

AMEN!!!

2008 Jun 29 01:49 AM

[User 168418:]

I THINK WERE CLOSE TO THE FCC APPROVING THE STOCK AND THE STOCK STAYS OVER $2.00 WITH ANOTHER POP ON MONDAY. NO #1 GRAD GIFT IS SIRIUS RADIO!!!! CHECK THAT OUT.

2008 Jun 29 01:50 AM

[163888:]

cos1000, We will see, I think we are looking at by Tues at the latest if I am right (at least one commissioner comes out in favor). The jump was just to big for it to be short covering, if it would have gone to 1.98 to 2 maybe but not 2.1. While I do remember what I said, that I believe we did get a longer and stronger batch of investors under 2. I hate to say this but going under 2 might have been the best thing, to clear out the weak and and short timers. If you recall I also did not think it would go that high, that fast and I said the market had to do some correction to help it get above 2 (I had thought 2 to 2.05 in a day or two, not two hours). Reguardless if we get good news about the merger on monday or not I do not think we go below 2 at this point. Besides I should get some credit for calling the bottom and then what it would go up to, dont you think. while I was not exact I think a few pennies on the bottom and the top was pretty good. On top of that, I was close enough on in the time frame. I think baring the market still going down alot, we should see SIRI stay above 2. I also have to say, I would expect a correction in the market soon, I just cant believe we will see 10,900 in the Dow before it corrects.

2008 Jun 29 08:04 AM

[163888:]

shure46, Well I was wrong about the staying above 2 sorry. The news I was looking for was not what happen the 2009 estimate was nice just not nice enough.

2008 Jun 30 10:00 AM