Apparently some of the terrestrial receivers used to pick up the programming of XM Satellite Radio are susceptible to springing leaks. Engineers at an FCC lab determined that the Delphi XM SKYFi2 was exceeding emission limits, as was Audiovox, a receiver manufactured by Audiovox Xpress. The FCC also want additional info on other receivers, including Sportscaster, Roady XT, MyFi, Airware, Tao and Roady 2. The NAB has been complaining about interference from such devices to FM broadcasts. In a recent letter to the FCC seeking relief, NAB President/CEO David Rehr wrote, "Although press reports indicate that XM and Sirius have requested their manufacturers to suspend production of noncompliant devices, these actions do nothing to address noncompliant products already in consumers' hands or those already shipped to distributors or retailers."
Here is XM's SEC filing on the matter
As we have previously disclosed, on April 25, 2006, we received a letter from the Federal Communications Commission stating that its Office of Engineering and Technology Laboratory had tested the Delphi XM SKYFi2 radio and determined that its FM modulator wireless transmitter was not in compliance with permissible emission limits. We are also aware that Audiovox, manufacturer of the Audiovox Xpress, a radio designed to work with the XM system, received a similar letter from the FCC.
On August 7, 2006, the FCC requested additional information with respect to these devices, as well as the Sportscaster, Roady XT, MyFi, Airware, Tao and Roady 2 devices, including the chronology and circumstances leading to the non-compliance, and actions and remedies undertaken to correct the situation.
We will respond promptly to the latest FCC request and have implemented a series of actions involving our radios designed to bring them into compliance; we have also requested our manufacturers to suspend production and/or shipments of radios or accessories with these issues. We are completing the necessary design or installation modifications, as appropriate, and conducting additional testing for XM radios to meet applicable FCC requirements. We expect to obtain new certifications for modified XM radios on an expedited basis.
In the meantime, we are working to limit interruptions in supply or availability of product for sale of certain models of XM radios at retailers, and we continue to cooperate with the FCC's ongoing inquiry. No health or safety issues are involved with these wireless XM radios, and this matter does not pertain to any XM radios which are factory installed in new vehicles or which are directly connected in other vehicles.
We can provide no assurances at this time that our actions will be deemed sufficient by the FCC, or that this matter will not have a material impact on our business, consolidated results of operations or financial position.
