Despite Patent, XM Plans No Local Content
By Renae Merle,
Washington Post Staff Writer
Wednesday, March 6, 2002
XM Satellite Radio Inc. said yesterday that it does not intend to offer local radio service, despite fears from the National Association of Broadcasters that a new patent would allow it to do just that.
"We are a national radio service," said spokesman Charles Robbins. "And we have no intention of broadcasting locally."
But a patent that XM received last month would allow the D.C.-based company, which uses satellites and land-based "repeaters" to provide 100 national channels of news and music, to offer weather, sports scores, advertising and other information specific to a local community using the repeaters. The National Association of Broadcasters said that patent conflicts with current rules that bar XM from competing with local broadcasters.
"We are astonished to learn that XM Radio has secretly acquired a patent that will allow the company to provide local programming," Edward Frittis, the association's president and chief executive, said in a statement.
The patent was hardly a secret and was obtained during the normal course of business, Robbins said. It is just one of "numerous" patents the company has, he said. The company agreed in 1997 not to compete for local advertising.
XM and its New York-based competitor, Sirius Satellite Radio Inc., have been locked in battle with traditional local radio stations for years. Local stations fear the competition that satellite radio may bring, particularly for advertising dollars. XM and Sirius say they need the repeater network to offer quality service.
Both sides are awaiting a ruling from the Federal Communications Commission on whether to give XM and Sirius permanent approval to use its network of repeaters.
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