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iPhone Shows the Folly of the FCC's Worry About XM-Sirius

by: Kevin Maney July 24, 2008 | about stocks: SIRI    
Kevin Maney

Kevin Maney

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OK, so the FCC after 17 months(!) seems finally ready to approve the merger between the two satellite radio companies, XM (XMSR) and Sirius (SIRI). Regulators have a concern that there will be no competitors left in the satellite radio industry. But, if you look not very far ahead, that's like worrying that there will be no competitors in the chocolate chip cookie dough ice cream-making industry. Satellite radio has a lot of happy customers, but even today it's not even remotely the only way to pipe music and news into your car.

Besides regular radio and possible coming digital radio broadcasts, let's take a scenario that's taking form today. Already, owners of the new 3G iPhone are discovering the Internet radio -- especially the Pandora service -- work great on the device. That's a pretty compelling alternative to satellite radio. Plug your iPhone into your car stereo, define the music you want to hear, and you get streaming music -- and it's FREE.

Look, too, at the WiMax efforts by Sprint (S) and its Clearwire (CLWR) partners. You'll have WiFi-like wireless Internet covering whole cities. It can't be long before you can buy a WiMax-enabled car stereo, which could tune in Pandora or Launch or any other streaming service. Again -- for FREE.

For cryin' out loud, let XM and Sirius merge. They're going to have enough trouble competing as a combined company.

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This article has 3 comments:

  •  
    Jul 24 08:20 AM
    Well said! This is just another example of government being used by special interests. It is 'ironic' that is the Democrats who have 'caved' to the terrestrial radio lobby (Who listens to terrestrial radio anymore?) in the face of overwhelming 'public' desire to see the merger go through. I listen to most music through my MP3 player now anyway, and my BlackBerry. I love XM for their sports and news coverage when I am on the road. Politicians, all they sell is is the that that 'care' about us, when it is the campaign contributions that fuel their real 'interest'.
    Reply
  •  
    Jul 24 09:15 AM
    Yeah...but try to get 3G or WiMax in the middle of nowhere. That is where Satellite radio excels. In the mountains of Colorado, the desert of Arizona or the swamps of Louisiana, I'm betting the 3G or WiMax signal isn't very good. There is a large population of people that do not live in a metropolitan area and satellite radio is a very, very good solution. And you still can't get live sports streams on Pandora.
    Reply
  •  
    Jul 24 10:48 AM
    author states

    "Plug your iPhone into your car stereo, define the music you want to hear, and you get streaming music -- and it's FREE."

    Free? HA! how much does your iphone cost a month?
    Reply
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