Companies first petitioned the Federal Communications Commission (FCC) to issue satellite Digital Audio Radio Service licences in 1990. After the FCC di- vided the satellite bandwidth, or the S band, the agency auctioned two eight- year licences for satellite broadcasting in 1997. Four companies—American Mobile Satellite Corp, CD Ra- dio, Digital Satellite Broadcasting and Primosphere—submitted bids for the two licences. CD Radio, now known as Sirius Satellite Radio, bought one of the licences for $83.3 million, and American Mobile Radio Corp, now XM Radio, won the other for $89.9 million.
In the ensuing years, the US satel- lite radio companies formed corpo- rate partnerships to build and distrib- ute radio receivers, develop talk, news, music, and sports programming, and market the new product to America. After launching their satellites be- tween 2000 and 2001, XM went on the air in late 2001, and Sirius fol- lowed in early 2002.
The companies spend roughly $250 million to launch a single satellite, lead- ing to massive over- head costs for satel- lite radio firms. More than 5 million people subscribed to satel- lite radio as of early 2005.That number is expected to jump to 8 million by the end of 2005, according to media analysts, mak- ing satellite radio one of the fastest-grow- ing technologies in history.
The FCC does not regulate the con- tent of satellite radio or other fee-based media. But, amid recent complaints over indecent con- tent on radio and television, Congress and the FCC are discussing ways to expand the agency’s authority to sub- scription-based media, such as cable television and satellite radio.
The FCC is authorized to allocate bandwidth for Satellite Digital Audio Radio Service as it did in 1992, and to issue broadcast and satellite licences. The US government must also coor- dinate the satellites owned by Sirius and XM through the International Telecommunication Union, which works to oversee global communica- tion networks.
In 1997, the FCC divided that bandwidth evenly for two satellite ra- dio licences, which were purchased by the highest bidders – Sirius and XM Radio. Each satellite radio licence has an eight-year term and can be re- newed. The FCC can levy fines and revoke the licence if either company interferes with other broadcast signals or violates other rules of its licence.
Air Wave Empire
ThE fiRST RAdIO bROAdcAST was made by Canadian inventor Reginald Fessenden on Christmas Eve, 1906. He transmitted music and greetings to United Fruit Company boats equipped with receivers in the Atlantic Ocean. By 1912, there was enough radio activity in the US to prompt the government to require licences for all radio operators. Early broadcasters primarily used the amplitude modula- tion or AM band – radio frequencies in the middle range between 530 and 1710 kHz. The band can travel long distances but is easily interrupted by skyscrapers or hills.
in the 1930s, Edwin Howard Arm- strong, known as the inventor of FM radio, developed the method of FM radio, developed the method of varying the frequency of a radio wave to create sound, rather than changing the amplitude. Clearer sound resulted and, by 1945, the number of radio sta- tions using the FM band doubled. After the Titanic sank in 1912, Con- gress passed the Radio Act—requir- ing all ships to be in radio contact. In 1927, Congress amended the Radio Act to create a Federal Radio Commis- sion, a regulatory body.
The communications act of 1934 created the Federal Communications Commission. The FCC has five com- missioners, including a chairman. The commissioners are appointed by the president and confirmed by the Sen- ate. The FCC’s Media Bureau creates and enforces regulation for radio and television stations. The FCC cannot censor the content of any broadcast due to First Amendment free speech protections, but the group’s juris- diction includes station licencing, restricting obscene and indecent content, regulating balanced political comment and ensuring that business- es adhere to ownership rules.
