Press release
NAB/Carmel Group white paper fundamentally misinterprets the
competitive environment for satellite radio, satellite consultant claims
MENLO PARK, Calif., Apr. 10 /PRNewswire/ -- Telecom, Media and
Finance Associates, Inc. (TMF Associates), the specialist Mobile Satellite
Services (MSS) consulting firm, today released a research note on the
competitive landscape for satellite radio in light of the proposed XM/Sirius
merger.

The research analyzes the positions taken by Carmel Group in its recent
white paper on behalf of the National Association of Broadcasters (NAB)
and concludes that this white paper ludicrously overstates the case for
opposing the merger of XM and Sirius and fundamentally misinterprets the
competitive environment for satellite radio.

Tim Farrar, author of the note, commented "Satellite radio is essentially a
car-based audio service at present, so the primary alternative for consumers
is free-to-air AM and FM radio, supplemented by the playback of pre-
recorded music such as CDs. The competitive position of these
subscription-free services vis-à-vis satellite radio has been substantially
enhanced by the widespread use of accessory adapters, allowing iPods
and other MP3 players to be connected to car stereos, and we estimate
that today as many drivers have access to MP3 content in their vehicles
as subscribe to satellite radio. Carmel Group’s assertion that MP3
players are not even relevant to today’s in-car audio market is quite simply
bizarre. In our view, increasingly convenient access to pre-recorded
content via MP3 players will enable subscription-free services to dominate
the in-car audio market for many years to come and therefore even if Sirius
and XM were to merge, it would be inappropriate to describe them as
having a monopoly of in-car audio services."

The research note forms part of TMF Associates’ information service on
Mobile Satellite Services and can be downloaded from
http://www.
tmfassociates.com/articles. It was produced independently, and was not
commissioned, funded or instigated by XM, Sirius or any other party.
More details about TMF Associates’ research publications are available
at
http://www.tmfassociates.com/reports.

TMF Associates, headquartered in Menlo Park, California, is a leading
consulting and research firm providing business and technical analysis in
satellite, wireless and broadband telecommunications. The firm specializes
in Mobile Satellite Services (MSS), including Ancillary Terrestrial
Component (ATC) technology, and works with operators, investors and
equipment manufacturers to analyze complex market issues. For additional
information, please visit
http://www.tmfassociates.com.

CONTACT:  Tim Farrar, President
Telecom, Media and Finance Associates, Inc.
650-839-0376 or tim.farrar@tmfassociates.com
About us
Consulting
Home
Research
Publications
Press
Contact us
Articles
Blog