• by Erik Sass , June 2, 2008

Pioneer North America sent a letter to the Federal Communications Commission last week objecting to a proposal from iBiquity Digital that wants all satellite radio sets to include hardware that allows them to receive HD digital radio signals--if the merger of XM and Sirius Satellite radio is allowed to proceed. The ex parte filing from Pioneer adds yet another voice to the many-sided debate over the satellite merger, which is awaiting FCC approval.

In his letter dated May 28, Adam Goldberg, Pioneer's vice president for government and industry affairs, wrote that the iBiquity proposal would "interfere with the useful and healthy free market mechanisms extant in radio electronics purchases" and result in a host of technical difficulties, including "decreasing AM/FM tuning performance."

Many satellite radio sets already include regular tuners for analog AM/FM broadcasts.

iBiquity Digital's December proposal was originally presented as a move to increase consumer choice, which iBiquity said would help offset the harm to consumers resulting from what many critics allege is a merger to monopoly. The proposal covered both stand-alone sets and factory-installed receivers in automobiles.

However, Pioneer countered that it would "unnecessarily increase costs to consumers uninterested in HD Radio"--thus limiting, not expanding, consumer choice.

The letter from Pioneer did not address a separate proposal by two Democratic congressmen that satellite radio manufacturers should be allowed--but not required--to include other audio options, like HD receivers as well as iPod ports and Internet hookups. Representatives John Dingell (D.-Mich) and Ed Markey (D-Mass.) made the proposal in a letter to FCC chairman Kevin Martin at the beginning of May.

Neither HD iBiquity, Pioneer, or the congressmen have taken a position on whether the merger should be allowed to proceed.