Auto Giants Oppose HD Radio Conditions for Merger
Two vehicle manufacturing giants have asked the Federal Communications Commission to disregard proposals that would require a combined satellite radio company to provide competing HD Radio technology in future receivers.
In a letter sent to the FCC last week, General Motors and Toyota said they are opposed to suggestions that the agency require the incorporation of HD Radio technology in any satellite radio receiver as a condition on the proposed merger between XM and Sirius. HD Radio technology is the format being used by AM and FM stations to deliver digital audio services to consumers.
The companies said those pushing the HD Radio condition "are seeking an unprecedented requirement regulating the choice of entertainment technologies in an automotive environment."
In addition, the car manufacturers said HD Radio is already penetrating the automotive sector without a mandate.
"Several manufacturers are either currently offering HD or have announced plans to make HD radio standard or optional in future models," Toyota and GM said in their joint letter. "Nothing in our companies' respective agreements with XM inhibits our ability to offer HD Radio."
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