Autoblog

It seems like forever ago when rumors started about a merger between Sirius and XM satellite radio. The rumors were made slightly more official when the two companies announced the "merger of equals" last year. Where have we heard that before? Nobody expected this $4.2 billion transaction to be a sprint, as there are laws with tall hurdles designed to govern this type of business deal, but this conjunction has creeped like an overloaded Tercel up a steep grade.

For more than a year we've been sitting around watching these two companies as they worked on securing shareholder approval (accomplished in November) and the endorsement of regulators (um, not yet). Now we're getting word from Sirius CEO Mel Karmazin that there may be an end in sight. During a talk at the Bear Stearns 21st Annual Media Conference, Karmazin said he "took heart" in recent FCC comments that mentioned that the body aims to rule by the end of March. "The fact that it has lingered this long, it has been interpreted... as good news," Karmazin said. Gary Parsons, Chairman of XM Satellite Radio, added that he was also confident the Department of Justice and the FCC were moving forward "...in a timely manner."

With satellite radio in need of some more customers, let's hope they can quickly put this merger in the books and focus on more important issues like signal reception and more varied content.

[Source: Automotive News, subs. req'd]

If this affects you, chances are that you've already received a letter in the mail from General Motors and OnStar informing you that the analog network supporting older GM models with the OnStar service will be turned off on January 1st, 2008. The reason is because the Federal Communications Commission ruled in 2002 that cellular companies could stop supporting their analog networks in favor of digital ones, and OnStar was originally set up on an analog network owned by Verizon Wireless in 1996.

GM began selling vehicles with dual-mode (analog/digital) hardware in 2004 after all appeals to the FCC to overturn its ruling had failed. All GM cars and trucks are now likely sold with digital-only equipment. Some GM vehicles produced between 2002 and 2004 may have been equipped with analog hardware that is digital ready, meaning it can be upgraded to accept a digital signal. To find out if your vehicle is digital-ready, click here and have your VIN ready. If you do have equipment that can be upgraded, GM will do it for you, including parts and labor, for only $15 if you agree to a $199 1-year subscription to OnStar.

Nevertheless, it's a bum-deal for those GM customers with older OnStar models that can't be upgraded, as their service will ride off into the sunset on New Year's Eve thanks to the FCC.

[Source: Straightline, GM]

In a letter to the FCC, Ralph Nader, the world's most visible consumer advocate, has requested an investigation into the advertising practices of General Motors with regard to several radio personalities.

The letter from Nader was prompted by an Automotive News article entitled, "Puff Piece. Rush Limbaugh is one of the radio personalities GM is working with to talk up its vehicles" (sub. req.). The article goes on to detail how the General has supplied DJs, broadcasters and Limbaugh with test vehicles, private meetings and VIP tours of GM facilities.

Nader contests that this type of promotion may be against FCC laws requiring disclosure of payments for endorsements. Some choice quotes from Limbaugh include, "GM has a ton of momentum," and, "GM cars and trucks have never been better."

Whether or not an investigation will take place is up to the FCC, but General Motors made it clear in a statement that everything they've done with broadcasters is above board and meets with the FCC's regulations.

You can read Ralph Nader's letter in full by following the jump.

[Source: Automotive News – Sub. Req., Nader.org]

According to the Washington Post, debt collectors are lobbying the Federal Communications Commission (FCC) to again use automated dialers to contact mobile phones of debtors. Previously, collectors could use such technology but were banned back in 2003 as part of the FCC’s crackdown on telemarketers. Debt collectors argue they should not be under the same restrictions since their calls are not random, but rather targeted at debtors. Currently, collectors must dial cell numbers manually. The FCC has stated it will review the request.

Cell phones as driving distractions have been discussed here, here, and here. What’s your feeling about the collectors' claims? Would there be an impact if the FCC grants their request, or is this a non-issue? If granted, would it open the door for telemarketers and the ilk? (Answering the phone in the fast lane only to find a bill collector or telemarketer is recipe for road rage if we've ever heard one).

[Source: Washington Post via textually.org via Engadget]