Thursday, August 5, 2010

White Paper

Summary

The concept of American Independent Radio (AIR) was designed to allow independent radio content providers, members of the underserved class that have been absent on an ever shrinking on the airwaves. The FCC has an obligation to insure fairness in the marketplace and Sirius XM realized that it had moral responsibility to give space on its dial to voices that are not normally heard on terrestrial radio but need to be heard on satellite. Their Voluntary Commitments to make available four percent (4%) of its capacity for use by certain Qualified Entities, and an additional four percent (4%) of capacity for the delivery of noncommercial educational or informational (“NCE”) programming opens the gate for theses Qualified Entities members of the underserved markets to be heard and join the digital wave of radio.

As stated in comments filed by iClick2Media, iClick2Media is a subsidiary of Independent Creative Artists (hereinafter ICA) is a production and distribution company that specializes in delivering content on various digital formats and mediums. ICA’s concept American Independent Radio (hereinafter “AIR”) in February of 2009 began its quest to act as the sole company that would act as the Independent Entity capable of managing, aggregating and preparing unaffiliated content for transmission. AIR is uniquely qualified and positioned to be a true independent entity to administer all 24 channels and under its brand and concept believes AIR will foster competition among members of the underserved markets and walk the fine line between Race Neutral and Race Preference.

It should be noted that when iClick2Media first filed its comments as a result of the Public Notice[1] seeking comments on the implementation details of the Leasing condition it had begin working with AlphaStar as its transmission facilities partner. However since that filing and subsequent filings in June of 2009 AlphaStar decided not to continue its pursuit with iClick2Media on acquiring the licenses made available by Sirius XM Voluntary Commitments and as a result iClick2Media has continued to move forward with its goal still in focus to become the sole licensee of the four percent commercial and four percent non-commercial channels under Sirius XM

It has been two years since the merger between Sirius and XM has been finalized. On February 27 2009 a Public Notice[2] seeking comments on the implementation details of the Leasing condition[3] and Prior the most recent Order dated May 24, 2010 [4] where the Media Bureau, on its own motion granted an extension until August 23 2010 there has been several other such order of such extension[5]. iClick2Media since February 27, 2009 have met and or spoken to Members of the Media Bureau several times.

During those conversation iClick2Media has and continue to seek control over the 24 channels made available by the Sirius XM Voluntary Commitments[6] and the importance of using mobile to reach the underserved market.

The purpose of these additional comments submitted by iClick2Media an Independent Creative Artists company is to discuss:

1. American Independent Radio (AIR)

a. How AIR is defined

b. What AIR plans and goals for the 24 Channels

2. The implication of Adarand

a. Adarand Defined

b. Strict Scrutiny

c. The Effect of Adarand within Governmental Agency and why its not Applicable

3. AIR Selection approach

a. Selecting AIR would foster competition through the creation of an entirely independent entity capable of managing and aggregating content from the underserved markets

b. AIR is uniquely qualified and positioned to be a true independent entity to administer of the 24 channels

i. Enforcement of Nondiscrimination in Contracting

c. AIR will adopt a quasi-public process and encourage participation from public

i. Internet Postings and Searchable Databases

ii. Conferences, Meetings, Forums, Media, and Printed Materials

iii. Ensuring the Inclusiveness of Outreach

4. Supporting statistic of why American Independent Radio makes Sense

a. Recap of Statistical Date Submitted

b. Pew Internet & American Life Project

c. Social Media

5. The wrap-up

1. American Independent Radio

(a) How AIR is defined

American Independent Radio (hereinafter “AIR”) is a concept created under iClick2Media Mobile Network a division of Independent Creative Artists, whose goal it to use the 24 channels as a Digital Grassroots Movement for the underserved markets voices, ideas and goals that can be heard in a race natural space. AIR believes that if the lines of racial inequality are to be erased then building a free and open understanding of who people are what they share in common, their likes and dislikes are quintessential to making a difference for the underserved markets currently not represented.

(b) What AIR plans and goals for the 24

AIR’s concept is to break the channels up by topic not race using the common thread of being human to inform, educate and give the underserved market the opportunity to be on the satellite radio. By defining the proposed channels by topic AIR broaden the spectrum of talent, interest and diversity of its content provider and increase its pool of potential listener. AIR’s concept fits perfectly with Sirius XM A la Carte Programming I as outlined in the Memorandum Opinion and Order Report and order[7]. AIR concept along with Sirius XM A la Carte Programming I insures the underserved markets needs are met, a broader customer base can be achieved and the line between race-neutral/race preferences is achievable.

2. The Implication of Adarand

(a) Adarand Defined

In Adarand Constructors, Inc. v. Peña[8], the United States Supreme Court held that “all racial classifications, imposed by whatever federal, state, or local government agency” must be analyzed by a reviewing court under the standard of “strict scrutiny”.

(b) Strict Scrutiny

Strict scrutiny[9] is applied based on the constitutional conflict at issue, regardless of whether a law or action of the U.S. federal government, a state government, or a local municipality is at issue. It arises in two basic contexts: when a "fundamental" constitutional right is infringed, particularly those listed in the Bill of Rights[10] and those the court has deemed a fundamental right protected by the liberty provision of the 14th Amendment[11]; or when the government action involves the use of a "suspect classification" such as race or national origin that may render it void under the Equal Protection Clause[12]. To pass strict scrutiny, the law or policy must satisfy a three-prong test:

i. It must be justified by a compelling governmental interest.

ii. The law or policy must be narrowly tailored to achieve that goal or interest. If the government action encompasses too much (over-inclusive) or fails to address essential aspects of the compelling interest (under-inclusive), then the rule is not considered narrowly tailored.

iii. Finally, the law or policy must be the least restrictive means for achieving that interest. More accurately, there cannot be a less restrictive way to effectively achieve the compelling government interest, but the test will not fail just because there is another method that is equally the least restrictive.

In Schwegman Constructors and Engineers, Inc., [13] the Supreme Court held racial classifications must be subject to strict scrutiny and must serve a compelling governmental interest and be narrowly tailored to further that interest. Schwegman[14] further contends that following the court decision in Adarand racially based set-side programs imposed by the federal government are subject to the same level of “strict scrutiny” applied to racially based set-aside programs at the state or local level, see City of Richmond v. Croson Co.,[15]. Here is where the problem begins. The law or policy that must satisfy the three-prong test required to pass strict scrutiny is not here.

i. It must be justified by a compelling governmental interest. There has not been a law or policy compelling a government interest or has the government developed, created, implemented by any governmental agency including the FCC. The Voluntary Commitment[16] were terms created by two private companies XM Satellite Radio and Sirius Satellite Radio (that are regulated by the FCC but are not nor have they ever been governmental agency) that wanted to merge the companies and under the terms of their agreement decided to create a Voluntary Commitment to set aside four percent (4%) commercial and four percent (4%) non-commercial channels to a Qualified Entity or Qualified Entities under the new company’s moniker Sirius XM. The terms of the Voluntary Commitment included as part of the approval of said mentioned merge a clause that focused on the Public Interest and Qualified Entity Channels. The definition of Qualified Entity or Qualified Entities include any entity that is majority-owned by persons who are African-American, not of Hispanic or origin; Asian or Pacific Islanders; American Indians or Alaskan Natives; or Hispanics. So if Voluntary Commitments made by two private companies that that are publicly traded to set aside four percent (4%) commercial and four percent (4%) non-commercial channels and defined whom would qualify for them how then can Adarand be applied.

ii. The law or policy must be narrowly tailored to achieve that goal or interest. If the government action encompasses too much (over-inclusive) or fails to address essential aspects of the compelling interest (under-inclusive), then the rule is not considered narrowly tailored. Although the scent of Adarand may be present the one key component that opens the door to Strict Scrutiny is not present. In Lee v. Washington [17] a compelling government interest justifying only those uses of race that are narrowly tailored to address those necessities see e.g., Grutter v. Bollinger [18] to have standing, the ‘injury in fact” necessary to establish standing in this type of case is the denial of equal treatment resulting from the imposition of the barrier, not the ultimate inability to obtain the benefit. Further according to Northeastern Florida Chapter, Associated General Contractor of America v. Jacksonville[19] in the face of such a barrier, to establish standing, a party need only demonstrate that it is able and ready to perform and that a discriminatory policy prevents it from doing so on an equal basis. Idib. Since there is no policy that was or currently imposed by the FCC (a governmental agency) as it relates to the Sirius XM Voluntary Commitment to set aside four percent (4%) commercial and four percent (4%) non-commercial channels to a Qualified Entity or Qualified Entities and since Sirius, XM and or post merger Sirius XM is not nor have they ever been a governmental agency therefore the application necessary for Adarand again is not here is not here. Further there was never a governmental program created out of a need by the FCC that would include Qualified Entity or Qualified Entities with Sirius, XM, and or after the merger Sirius XM. Nor was there a compelling governmental interest from any federal, state, and or local governmental agency that needed to be met as a result of the merger between Sirius XM as it relates to race.

iii. Finally, the law or policy must be the least restrictive means for achieving that interest. Sirius, XM, and after the merger Sirius XM separately were publicly traded companies and after the merger continue to be a publicly traded company therefore the application of “law or policy must be the least restrictive means for achieving that interest” cannot apply since Sirius XM has not nor has ever been a governmental agency. Further there has never been any policy and or compelling governmental interest from any federal, state, and or local governmental agency that has been made, implemented and or granted for Sirius XM.

(c) The effect of Adarand within Governmental Agencies

In September 2005, the U.S Commission on Civil Rights[20] issued a report finding that, ten years after the Adarand decision, federal agencies still largely fail to comply with the rule in Adarand. Specifically, the Commission found that the Departments of Defense, Transportation, Education, Energy, Housing and Urban Development, and State, and the Small Business Administration, do not seriously consider race neutral alternatives before implementing race-conscious federal procurement programs. The U.S Commission on Civil Rights found that the Strict Scrutiny standard under Adarand and other Supreme Court decisions requires such consideration but not seriously consider race neutral alternatives therefore enforcement has not been able to be achieve. It seems clear the trigger for Adarand must be some federal, state, or local government agency program, law and or policy that brings to the forefront two basic contexts:

1. When a "fundamental" constitutional right is infringed, particularly those listed in the Bill of Rights[21] and

2. Where the court has deemed a fundamental right protected by the liberty provision of the 14th Amendment[22]; or

3. When the government action involves the use of a "suspect classification" such as race or national origin that may render it void under the Equal Protection Clause.

The three basic contexts have not been met then the next logical step can’t be made because you need at least these two of these contexts before you get to strict scrutiny test and under the Sirius XM Voluntary Commitment to set aside four percent (4%) commercial and four percent (4%) non-commercial channels to a Qualified Entity or Qualified Entities in fact there are:

1. No constitutional rights infringed,

2. Nor are there any fundamental rights protected by the liberty provision of the 14th Amendment and

3. Finally there were no governmental actions that involve the use of a “suspect classification” that may render it void under the Equal Protection Clause.

In reviewing the scope of the Adarand decision is consisting with the interpretation of the case by the Department of Justice (DOJ). An analysis of the Adarand decision by DOJ states:

“Mere out reach and recruitment efforts….typically would not be subject to Adarand standards, indeed, post-Corson cases indicate that such efforts are considered race neutral means of increasing minority opportunity. In some sense, of course, the targeting of minorities through outreach ad recruitment campaigns involves race-conscious action. But the objective there is to expand the pool of applicants of bidders to include minorities, not to use race or ethnicity in the actual decision”.

The DOJ explained it as well:

“If the government does not use racial or ethnic classifications in the selection of person from the expanded pool, Adarand ordinarily would be inapplicable”[23].

If this is the case then how can Adarand apply to a non-governmental agency? It cannot. The fact of the matter is “The Voluntary Commitments” made by Sirius and XM was to ensure as stated by Chairman Kevin J. Martin:

“I said at the time that the two companies announced their intent to merge that I thought they had a high hurdle to meet if they wanted to prove that the transaction would be in the public interest. It has taken some time, but I do believe that with the essential Voluntary Commitments they have made, the parties have met this burden….I commend the parties for committing to offer more choice and flexibility in how they purchase channels….I am pleased that the parties have committed to offering consumers, for the first time, with a specific percentage of diverse programming. The companies have agreed to dedicate eight percent of their channels – 24 channels in total—to minority and public access programming. This will create greater opportunities for more voices to be heard on satellite radio, covering the issues that are important to those communities that may have traditionally been ignored in the past[24].

This statement shows that Adarand cannot be applied because as mentioned above by Chairman Martin the two companies overcame the hurdle and came up with a formula that meet all the necessary needs to ensure fairness, flexibility, offering consumers diverse programming none of which were programs being imposed, created, implemented, and originated by the FCC or any other governmental agency

3. AIR Selection approach

a. Selecting AIR would foster competition through the creation of an entirely independent entity capable of managing and aggregating content from the underserved markets

The commission asked for comments on “weather their should be a single lessee or multiple lessees”, whether Sirius XM should be part of the selection process, and if not who should make the selection.[25] AIR has and continues to propose that one entity be the lessee or trustee for selecting the sub-lessees, AIR is the entity. AIR process is not based on race solely but on what content of the underserved market that is current missing from the line-up on the Sirius XM, and how that content falls in line with Sirius XM A la Carte I Programming outlined in the Voluntary Commitments.

In the appendix is a deck that details AIR selection process. The process includes:

1. AIR Channels Breakdown

2. Pre-Marketing the application process

3. Requirement for selection

4. Time line for selection to launch Date

5. Use of Technology and

6. Post-Marketing

AIR believes that this process is the best to ensure the inclusion of the underserved market and would foster inclusion of women and minority in the satellite and mobile space. AIR also believes that the concern express in the Dissenting Statement of Commissioner Jonathan S. Adelstein[26] can be resolved by what AIR is proposing. According to his dissent Commissioner Adelstine wrote:

“Sirius and XM (collectively the “Applicants”) currently offer dynamic and competitive audio programming to consumers. Their marketplace competition with each other has undoubtedly contributed to their cutting edge appeal…The Applicants’ commitment to set aside four percent of full-time audio channels for noncommercial educational and informational programming as well as four percent for qualified entity programming is a small step in the right direction. There is no explanation, however, as to why these commitments are significant enough to offset the potential public interest harms by a merger to monopoly….And, it is left entirely unclear how the qualified entities will be selected, leaving the entire provision unintelligible and unpredictable. “We will determined the implementation details for use of these channels [for qualified entities] at a latter date,[27] is a clear indication of the Commission’s historic pattern of neglecting minority access to communication industry. Once again, rather than taking a decisive step forward to improve the plight of women and people of color in media, the Commission has taken a step to the side”.

AIR believes its selection process is too a small step in the right direction. Though it’s a Qualified Entities it is not focus on color solely, but focused on the needs of the underserved market, it’s need for content and its need to be independent. AIR also believes that the “side step” mentioned by Commissioner Adelstine and his concerns “why these commitments are significant enough to offset the potential public interest harms by a merger to monopoly” are workable to avoid the “potential public interest harms by a merger to monopoly”. First, AIR offers an independent voice with many other independent voices under its moniker. Second, it fits within the confines of the Voluntary Commitment A la Carte Programming I as outlined in the Memorandum Opinion and Order Report and order [28] and third by having one entity oversee the channels it can maintain its independence within the monopoly to ensure these voices never go silent and continue making steps in the right direction towards race neutral.

b. AIR is uniquely qualified and positioned to be a true independent entity to administer of the 24 channels.

Four (4) of the most active companies on the docket have their own plans for programming. Each meets the necessary qualification to be considered a Qualified Entity. Some have programming ideas that overlap with each other while others currently have terrestrial station nationwide. It should be noted that in February 2010 iClick2Media filed comments where it suggested to the FCC that the five (5) most active members on the docket work together to find a solution and suggested the creation of the Diversity Satellite Radio Consortium (hereinafter “DSRC”) however that concept has not been able to created because many parties on the docket believe these channels will never see the light of day. However AIR believes its quest for the underserved market is inline with what the true meaning of the Voluntary Commitment is and unlike them AIR’s focus is on the true meaning of what the underserved market represent. Though the Voluntary Commitment made by Sirius and XM defines race[29] but the market also covers other segment of the American population that can’t be defined by race. AIR believes that they too should have a voice, a space to express their ideas, topic and concerns. Though AIR is a minorities company it does not have the mentality of one. It realizes that if this country is too erasing racism it first needs to gets to a place where Race Neutral and Race preference blears. AIR’s goals, selection process, use of the Internet and mobile phones to get the content to the underserved markets are built on that foundation.

c. AIR will adopt a quasi-public process and encourage participation from public

a. Internet Postings and Searchable Databases:

As part of its out reach AIR will use the power of social media to spread the word. The power of social marketing as a tool to reach the potential user is better than word of mouth. For example if you have 5000 friends on Facebook and you post the opportunity to be come a radio host on Sirius XM with the link that one posting open the selection process to 5000 people with the push of a button. That one push turns into many others pushing the button on their computer sharing the information with their network of friends. Suddenly you know have a quasi-public notice that keeps on moving throughout the social network. A sample of iClick2Media Social

b. Conferences, Meetings, Forums, Media, and Printed Materials Ensuring the Inclusiveness of Outreach

AIR will also ensure it notifies key people that have and or are attached to networks, memberships and agencies that are members of the underserved market to get the word out about AIR and what its is, what content is needed and what the application process is. As stated in AIR Selection Deck attached herein the time line is 180 days until launch. There will be a notice period of 90 days before the selection process will begin. During that time AIR will maintain records online for the public, the FCC, Sirius XM and or others to view to ensure AIR remains an open application process. As an example of our concept the OWN Network (Oprah Winfrey & Discovery Network) launched a similar process where it used Facebook, Twitter, MySpace and oprah.com/own to get the word out to have people try to win a spot on a new reality TV series entitled “Your OWN Show on OWN!” Thought this was a voting selection process its core notification concept and ability to view people’s submission are in line with AIR core process. This process does three things. First keeps AIR neutral, second it open notification to people who would not know of this opportunity and thirdly it affords diversity of ideas from the underserved markets.

4. Supporting statistic of why AIR makes Sense

In it comments submitted in March of 2009[30] iClick2Media provided statistical data to support its position of the need of the underserved market lack of a voice on the dial. They included The Infinite Dial[31], Radio Today: A Quantitative History of Ownership Consolidation In The Radio Industry, Radio Today: How America Listens to Radio[32], A Quantitative History of Ownership Consolidation In The Radio Industry[33] and Off The Dial: Female and Minority Radio Station Ownership in the United States[34]. Each of the documents supports what Sirius XM Voluntary Commitments attempts to fix and the dissenting Statement of Commissioner Jonathan S. Adelstein that the state of minority radio is dismal. Though there have been steps made to increase minority participation in radio such as Clear Channel donating AM stations to the Minority Media and Telecommunications Council and offering to other organizations AM stations for free it is at best dated in a digital world. With the advent of digital communication, the internet and mobile device (i.e. Smart Phones) several generation now get their information for those sources not radio. Not radio especially AM Radio.

An example of this movement can be found in a study done by Pew Internet & American Life Project[35]. A Summary of Findings concluded:

Home broadband adoption stood at 63% of adult Americans as of April 2009, up from 55% in May 2008.

The latest findings of the Pew Research Center’s Internet & American Life Project mark a departure from the stagnation in home high-speed adoption rates that had prevailed from December 2007 through December 2008. During that period, Project surveys found that home broadband penetration remained in a narrow range between 54% and 57%. The greatest growth in broadband adoption in the past year has taken place among population subgroups, which have below average usage rates. Among them:

Senior citizens: Broadband usage among adult’s ages 65 or older grew from 19% in May 2008 to 30% in April 2009.

Low-income Americans: Two groups of low-income Americans saw strong broadband growth from 2008 to 2009.

Respondents living in households whose annual household income is $20,000 or less saw broadband adoption grow from 25% in 2008 to 35% in 2009.

Respondents living in households whose annual incomes are between $20,000 and $30,000 annually experienced a growth in broadband penetration from 42% to 53%.

Overall, respondents reporting that they live in homes with annual household incomes below $30,000 experienced a 34% growth in home broadband adoption from 2008 to 2009.

High-school graduates: Among adults whose highest level of educational attainment is a high school degree, broadband adoption grew from 40% in 2008 to 52% in 2009.

Older baby boomers: Among adults ages 50-64, broadband usage increased from 50% in 2008 to 61% in 2009.

Rural Americans: Adults living in rural America had home high-speed usage grow from 38% in 2008 to 46% in 2009. Population subgroups that have above average usage rates saw more modest increases during this time period.

Upper income Americans: Adults who reported annual household incomes over $75,000 had broadband adoption rate change from 84% in 2008 to 85% in 2009.

College graduates: Adults with a college degree (or more) saw their home high-speed usage grow from 79% in 2008 to 83% in 2009.

Notably, African Americans experienced their second consecutive year of broadband adoption growth that was below average.

In 2009, 46% of African Americans had broadband at home.

This compares with 43% in 2008.

In 2007, 40% of African Americans had broadband at home.

Why is this important? As iClick2Media as stated from the beginning it plans to implement the use of mobile devices to reach the underserved market and here are the hard fact about reaching that market and the potential for greater growth than ever before. According to the study:

A. 56% of adult Americans have accessed the Internet by wireless means (i.e. using a laptop, mobile device, game console, or MP3 player). 



B. Smart phones

1. One-third of Americans (32%) have used a cell phone or Smart phone to access the Internet for emailing, instant messaging, or information seeking.

2. On the typical day, nearly one-fifth (19%) of Americans use the Internet on a mobile device, up substantially from the 11% a growth of 73% in the 16-month interval between surveys.

C. African Americans are the most active users of the mobile Internet and their use of it is also growing the fastest. Among the highlights of the findings include:

1. 48% of Africans Americans have at one time used their mobile device to access the internet for information, emailing, or instant-messaging, half again the national average of 32%. 


2. 29% of African Americans use the Internet on their handheld on an average day, also about half again the national average of 19%.

3. 32% of African Americans used the Internet on their mobile on the average day

D. The high level of activity among African Americans on mobile devices helps offset lower levels of access tools that have been traditional onramps to the internet, namely desktop computers, laptops, and home broadband connections:

1. By a 59% to 45% margin, white Americans are more likely to go online using a computer on a typical day than African Americans. 


2. When mobile devices are included in the mix, the gap is cut in half,

3. 61% of whites go online on the average day when mobile access is included while 54% of African Americans do.





4. African American and white Americans, on average, do the same number of activities.

E. There are also clear differences in attitudes about mobile access across racial categories:

1. With African Americans being very active in texting and IM-ing, it is no surprise to see them in the lead in viewing mobile access as a way to stay in touch with others.

2. African Americans also are more likely than whites to see mobile access as a way to share content with others while on the move. 



3. The growth in use of the Internet on the handheld for African Americans is striking, particularly when focusing on the frequency of doing this on the typical day.

a. Recall that handheld Internet use on the average day grew by 73% for the general population from the end of 2007 to the beginning of 2009.

b. For African Americans, growth was twice the rate of whites from 12% to 29% or a growth rate of 141%. 



F. So what does this all mean?

1. The gap in digital divide among race has begun to close and like Commissioner Adelstine statement regarding the Voluntary Commitment “this is small step in the right direction”.

2. That the underserved markets continue to want access to content and have the ability to develop and create content that is relevant to them and such created content has the ability to be beneficial the collective listeners on Sirius XM,

3. That African American's and Hispanic's are finding cost effective way to have access to the World Wide Web via their mobile device and are sharing that information via email, texting, twittering and facebooking, while giving a voice to the underserved markets,

4. With mobile phone providers (AT&T, Sprint, Verizon, T-Mobile and Metro PCS) offering smarts phones at affordable prices and plans that combine phone, texting and web browsing causing an upsurge among the underserved markets; Combine it with the Voluntary Comments and give the underserved markets access to develop content for their base and access to the 19 million listeners currently on Sirius XM will opens new doors for satellite radio growth and can finally be a real step forward for the underserved markets and solid the foundation for real equality .

5. The Importance of Social Media

According to a study by IAB[36] on social media Internet World Stats says: the US is currently among the top online consumers in the world according to hours of use and penetration on the web. This is due to Social Network popularity and the user need to share information and content. By the end of 2009, 160.3 million people had accessed the Internet via a broadband connection (that would include smarts phones with internet access). Social Media sites are characterized by the inherent functionality that facilitates the sharing of information between users within a define network i.e. AIR. The nature of Social Media allows for the initiation of conversation by either party; That conversation is currently happening among the members of the underserved markets and AIR can further those conversation by using social networks to inform, educate and assist in the development of ideas by the underserved market that is currently not happen on Satellite radio

Increasingly people want to join the conversation that is true of the underserved markets as well, for example in January of 2010 the audience for social media was 104,212. The following year in January 2009 115,083 and this year in January 2010 it was 149,285 (unique Audience for Social Media Sites, mm)[37]. These numbers show a 20% annual rate of growth that is coming from the underserved market need access to the internet for content that reflect who and what they are. Social Media is an effect tool in AIR’s goal to get the underserved market a place to be heard.

6. The Wrap-up

Adarand does not have a place here. It seems the fear of Adarand was more of a red herring than an issue at all. There has not been a law or policy compelling a government interest or governmental agency developed, created, and or implemented therefore Adarand cannot apply. AIR stands ready to build this network for the underserved market with our selection process. Further there are no fundamental" constitutional right that are infringed; the liberty provision of the 14th Amendment is not at issue either; and thought the use of a suspect classification is used the key element that is still needed is a law or policy compelling a government interest and it is not. AIR concept of using mobile to further the cause of moving the underserved market forward is quintessential to achievable inclusion and acceptance of its voice.


[1]Media Bureau Seeks Comments on Implementation of Sirius-XM Merger Conditions that four percent of Audio Channels be Leased to Qualified Entities and Extends the Deadlines for Compliance with this Condition, MB Docket No. 07-57 Public Notice 24, FCC Red 2855 (MB, rel. Feb 27, 2009)

[2] Id

[3] Id

[4] In the Matter of Application for Consent to the Transfer of Control of Licenses XM Satellite Radio Holdings Inv To Sirius Satellite Radio Inc. MB Docket No. 07-57

[5] Application for Consent to the Transfer of control of Licenses, XM Satellite Radio Holdings, Inc., Transferor, to Sirius Satellite Radio Inc., Transferee. MB Docket 07-57, Memorandum Opinion and Order and Report and Order 24 FCC Red 2855 (MB, rel. Feb 27, 2009). The Media Bureau, on its own motion, subsequently extended the deadline for the Leasing condition until June 29, 2009. Application for Consent it the transferee, MB Docket No. 07-57, Order, DA 09-1212 (MB, rel. May 29 2009). Previously, the Media Bureau also on its own motion, had extended the deadline for the Leasing Condition form November 28, 2008, until February 27, 2009. Application for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor, to Sirius Satellite Radio Inc., Transfer, MB Docket No. 07-57, Order, 23 FCC Red 17285 (MB. Rel. Nov. 28, 2008)

[6] In the matter of Application for Consent to the Transfer of Control of the Licenses XM Satellite Radio Holdings Inc., Transferor To Sirius Satellite Radio Inc., Transferee Memorandum Opinion and Order and Report and Order

[7] In the matter of Application for Consent to the Transfer of Control of the Licenses XM Satellite Radio Holdings Inc., Transferor To Sirius Satellite Radio Inc., Transferee Memorandum Opinion and Order and Report and Order pg. 40

[8] 515 U.S. 200 (1995)

[9] McCormack, Alfred (1946). "A Law Clerk's Recollections". Columbia Law Review 46 (5): 710–718

[10] Bill of Rights

[11] 14th Amendment

[12] Equal Protection

[13] 1996 WL. 490015 (Comp. Gen.), B- 2223, 96-2 CPD P 90

[14] Id

[15] 488 U.S. 469 (1989),

[16] In the matter of Application for Consent to the Transfer of Control of the Licenses XM Satellite Radio Holdings Inc., Transferor To Sirius Satellite Radio Inc., Transferee Memorandum Opinion and Order and Report and Order Appendix B Voluntary Commitments pg. 86-89

[17] 390 U.S. 333, 88 S.Ct. 994, 19 L.Ed.2d 1212

[18] 539 U.S. 306, 353, 123 S.Ct 2325, 156 L.Ed.2d 304

[19] 508 U.S. 656, 666, 113 S.Ct. 2297, 142 L.Ed.2d 586

[20] U.S. Commission on Civil Rights Federal Procurement After Adarand Sept 2005

[21] Bill of Rights

[22] 14th Amendment

[23] Memorandum to All Agency General Counsels for Walter Dellinger, Assistant Attorney General, Office of Legal Counsel, United States Department of Justice, at 7 (June 28, 1995) (footnotes omitted)

[24] Statement of Chairman Kevin J. Martin Re: Application for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor, to Sirius Satellite Radio Inc., Transferee, MB Docket No. 07-57

[25] Public Notice at Para 3

[26] Statement of Commissioner Jonathan S. Adelstein Re: Application for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor, to Sirius Satellite Radio Inc., Transferee, MB Docket No. 07-57

[27] Order at Para 135

[28] Id.

[29] A Qualified Entity includes any entity that is a majority-owned person who are African-American, not of Hispanic origin; Asian or Pacific Islanders; American Indians or Alaskan Native; or Hispanics.

[30] White Paper American Independent Radio: Proposal to be the Qualified Entity or Independent Trustee to Administer and Manage the Unaffiliated Independent Content Programmers to be Transmitted on Sirius XM Channel Allotment per the Sirius-XM Merger Order

[31] THE INFINITE DIAL 2008: RADIO’S DIGITAL PLATFORMS – Online, Satellite, HD RadioÒ and Podcasting 2006 Arbitron Inc., and Arbitron Radio Listening Report

[32] RADIO TODAY: HOW AMERICA LISTEND TO RADIO – Arbitron 2008 Edition

[33] A QUANTITATIVE HISTORY OF OWNERSHIP CONSOLIDATION IN THE RADIO INDUSTRY: Future of Music Coalition, December 2006

[34] OFF THE DIAL: FEMALE AND MINORITY RADIO STSTION OWNERSHIP IN THE UNITED STATES –How the FCC Policy and Media Consolidation Diminished Diversity on the Public Airwaves, Free Press, June 2007

[35] Pew Internet & American Life Project: Home Broadband Adoption 2009 – Broadband adoption increase, but monthly prices do too June 2009

[36] IAB Stats Deck Social Media May 2010

[37] Nielsen Netview, 2010

Wednesday, July 14, 2010

Are We Getting Closer

For the past 7 months Sirius XM have had several meetings with the FCC on the Implementation of Sirius-XM Merger Condition that twenty-four Audio Channels Be Leased To Qualified Entities and Extends . It has been stated to me that in those conversation the topic of conversation were:
(1) the definition of a Qualified Entity or Entities,
(2) the process for establishing eligibility including the technical and financial qualifications of lessees,
(3) the criteria for selecting among competing applicants where demand exceeds supply,
(4) the technical aspect of allocation capacity to lessees,
(5) the duration of the long-term lease, as well as other terms and conditions of services. Since this filings there have been several comments filed and additional extension

My hopes are as the deadline draws near that a plan of action will be implemented. ICA Project entitled American Independent Radio has been the only one requesting all 24 channels and as of today we hold that position.

In the few week we will be submitting comments and a plan on how to implement and insure the needs of the under served markets are being met and how the Al-a-cart program suggested by the merge order can bring about great benefits for all involved.


Monday, July 5, 2010

Did You Know That:

Mobile TV Revenues will accelerate after 2012

Worldwide revenues from mobile TV services will begin accelerating in 2012, according to a new study from ABI Research.

Dramatic Growth Expected 2012-2015
“Mobile TV Services” indicates growth in worldwide adoption of and revenues from mobile TV services has been slow and steady since 2008, when global revenues from mobile TV services were less than $2.5 billion. This year, they are estimated to reach about $2.5 billion, and should reach closer to $3 billion in 2011.

However, in 2012, worldwide mobile TV revenues will approach $7 billion. This will kick off what ABI Research is forecasting as a dramatic growth spurt, with revenues exceeding $10 billion in 2013 and $15 billion in 2014 before reaching $20 billion in 2015.

Several Inhibiting Factors Expected to be Resolved Several factors have hindered the widespread deployment and adoption of mobile cellular and broadcast TV services to date, according to ABI Research analysis. The three most important global market barriers have been the lack of free and simulcast local and national TV programs as a primer for fee-based premium content in most countries outside of Japan and South Korea, limited analog-to-digital TV transitions in most regions that would allow broadcasters to simulcast mobile and terrestrial TV services, and the inadequacy of 3G networks.

However, most developed countries will complete the transition from analog to digital by 2012 and the deployment of 4G networks over the next few years will enable a significantly improved mobile TV experience.

Fritz Jordan, principal analyst for ABI Research, said once the analog-to-digital TV conversion is complete, the barriers to entry for broadcasters will be low; with broadcasters leveraging existing content licenses and rights and invest just $100,000 or so per tower to provide mobile TV services.

In addition, Jordan said there will be a proliferation of mobile TV devices beyond cell phones. “Mobile consumers won’t be forced to go through a mobile operator and have to pay for voice, messaging, email and Internet plans first, just to get mobile TV,” said Jordan.

US Mobile Video Use Stays Flat Recent data from The Nielsen Company supports ABI’s findings of slow current growth in mobile TV, at least in the US market. The Nielsen Three Screens Report indicates the average amount of time US mobile subscribers spent viewing video on a mobile phone per month remained flat in Q1 2009, Q4 2009 and Q1 2010 at three hours and 37 minutes.

Friday, July 2, 2010

The Digital Divide between Blacks and Whites is getting smaller!

By Malik Shakur

In a study conducted by the Pew Research Centers Internet & American Life Project a nonpartisan, nonprofit "fact tank" that provides information on the issues, attitudes and trends shaping America and the world found that:

A. 56% of adult Americans have accessed the Internet by wireless means (i.e. using a laptop, mobile device, game console, or MP3 player). 



B. According to the study:

1. One-third of Americans (32%) have used a cell phone or Smart phone to access the Internet for emailing, instant messaging, or information seeking.

2. On the typical day, nearly one-fifth (19%) of Americans use the Internet on a mobile device, up substantially from the 11% a growth of 73% in the 16-month interval between surveys.

C. African Americans are the most active users of the mobile Internet and their use of it is also growing the fastest. Among the highlights of the findings include:

1. 48% of Africans Americans have at one time used their mobile device to access the internet for information, emailing, or instant-messaging, half again the national average of 32%. 


2. 29% of African Americans use the Internet on their handheld on an average day, also about half again the national average of 19%.

3. 32% of African Americans used the internet on their mobile on the average day

D. The high level of activity among African Americans on mobile devices helps offset lower levels of access tools that have been traditional onramps to the internet, namely desktop computers, laptops, and home broadband connections:

1. By a 59% to 45% margin, white Americans are more likely to go online using a computer on a typical day than African Americans. 

-

2. When mobile devices are included in the mix, the gap is cut in half;

3. 61% of whites go online on the average day when mobile access is included while 54% of African Americans do. 



4. African American and white Americans, on average, do the same number of activities.

E. There are also clear differences in attitudes about mobile access across racial categories:

1. With African Americans being very active in texting and IM-ing, it is no surprise to see them in the lead in viewing mobile access as a way to stay in touch with others.

2. African Americans also are more likely than whites to see mobile access as a way to share content with others while on the move. 



3. The growth in use of the Internet on the handheld for African Americans is striking, particularly when focusing on the frequency of doing this on the typical day.

a. Recall that handheld Internet use on the average day grew by 73% for the general population from the end of 2007 to the beginning of 2009.

b. For African Americans, growth was twice the rate of whites from 12% to 29% or a growth rate of 141%. 



F. So what does this all mean:

1. That the digital divide that has been wide as all the oceans combined is now looking more like a lake,

2. African American's and Hispanic's are finding cost effective way to have access to the world wide web via their mobile device and are sharing that information via email, texting, twittering and facebooking, and

3. With mobile phone providers (AT&T, Sprint, Verizon, T-Mobile and Metro PCS) offering smarts phones at affordable prices and plans that combine phone, texting and web browsing this lake may just dry up and put us all on the same playing field of sharing information and growing as one.

Data provide by:

John Horrigan Associate Director, Research

Pew Internet & American Life Project

An Initiative of the Pew Research Center

1615 L Street. NW

Suite 700

Washington D.C. 20036

(202) 419-4500

pewinternet.org


To contact Mr. Shakur:

American Independent Radio

An Independent Creative Artists Company

264 S. La Cienega Blvd.

Suite 565

Beverly Hills, CA 90211

(888) 406-0563 Office

(888) 588-4356 Fax

malik@independentcreativeartists.com

malikshakuresq (skype/iChat)

Wednesday, June 30, 2010

Update from FCC regarding the Order Adopted May 24, 2010


Before the Federal Communications of Commission

Released on May 24, 2010

In the Matter of Applications for Consent to the Transfer of Control of Licenses

XM Satellite Radio Holdings, Inc. Transferor

To

Sirius Satellite Radio Inc. Transferee the

FCC in its wisdom has for the sixth time extended the time to implement their voluntary commitment to enter into long-term leases or other agreements to provide a Qualified Entity or Entities rights to four percent of the full-time audio channels on the Sirius and XM platforms (leasing Condition).

SO WHAT DOES IT ALL MEANS? Well it a waiting game. Until the issues that the FCC claims to be of issue have been resolved this game of chess will continue.

America Independent Radio is focused on bringing new ideas and different points of views from the underserved markets to the American public via satellite radio and mobile. I believe that these 24 channels should be given to AIR to ensure the voices of the underserved market is heard and those voices are apart of the digital marketplace where different generations of people are sharing ideas, concepts and developing coalitions to build a better world.

Malik Shakur –CEO

American Independent Radio

An Independent Creative Artists Company

Tuesday, May 25, 2010

Update from FCC

FCC
c/o Marcia Glauberman
445 12th Street SW
Washington, DC 20554

RE: Up Date

Thank you for speaking with me this afternoon and giving me an update me on what has been happening with the leases for Sirius XM. If I'm to understand correctly, the new commissioner is looking at setting up and application process for the channels since the old commissioner never did that.

In several papers that iClick2Media submitted to the FCC regarding this issue, I have made several suggestion on how our application process would work and make it available to all people wishing to have access to the channels and air time on these suggest channels. I also suggest using mobile as away to reach the consumer of the undeserved market to in ensure the complete access to said channels. I find it odd that at this late date that this is now an issue. I'm sure that this process is necessary however it is still somewhat concerning.

I can only speak for iClick2media but I'm sure the others whom have been most active on the docket will concur with my feelings that this is beginning to look unfair to those of us that have been diligent in working towards obtaining these channels for the under-served market place.

I'm sure you and your office are working hard to reach an end result that will meet all the parties involved concerns. I look forward to speaking with you in the near future.

Regards,

Malik

Wednesday, February 10, 2010

Marlene H. Dortch, Secretary

Federal Communications Commission

445 12th Street, S.W. Washington, DC 20554

Re: iClick2Media’s solution for Consolidated Application for Authority to Transfer Control of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc., MB Docket No. 07-57

Dear Ms. Dortch:

iclick2media has been one of the most active applicant for management and programming for the proposed open access 24 channels made as voluntary concessions in July of 2008 after the merger between Sirius and XM satellite radio. Since the end of 2009, there have been several changes both in the intended planning for the channels and also with some changes in leadership at the FCC. At this time point, iClick2Media would like to reiterate its position on the matter of why we have come to a viable solution to the question of deciding on the Qualified Entity for content and administration of these channels. We hope to impress upon the Commissioners and deciding agency members of a new sense of urgency to come to a resolution to make available the 4 percent of Sirius XM Satellite Radio capacity for use by certain Qualified Entities.

We have submitted several white papers and have met with members of the FCC regarding our position. There have been several deadlines set and reconsidered which is understandable considering the impact and consequences of the decision on the public. Satellite radio is now growing significantly with its customer base and technological innovations for broadcast media. (see article at http://siriusbuzz.com/sirius-xm-adds-257k-net-subscribers-in-the-fourth-quarter-of-2009.php, Sirius Buzz, January 19th, 2010).

The five most active members on the docket have been iClick2Media, RSS Network Corporation, Council Tree/Mosaic Communication Partners LLC, Radio One, and Entravision Communications Corporation. All of these interested parties have submitted the necessary documents to meet all deadlines and have a vested interested in these channels.

Of the five most active on the docket, three of them - iClick2Media, RSS Network Corporation and Council Tree/Mosaic Communication Partners LLC - stand to meet the qualifications set in the terms and conditions by the Sirius XM Voluntary Commitments. Although both Radio One and Entravision meet the conditions set in place by the FCC, the two currently own over 100 radio stations around the nation and have channels currently on Sirius XM. If the vision of what the merger was intended to do is to open up media access to underrepresented groups, then it stands to reasonable interpretation that new and interested parties be allowed the chance to be designated as a Qualified Entity to enter the highly competitive market of airwaves.

iClick2Media has previously submitted the following proposal:

1. That a consortium of the existing and future interested parties create a viable management and strategy in the form of a Diversity Satellite Radio Consortium (DSRC)

2. The DSRC will be able to meet several concerns addressed on the docket in comments from the parties and the public, while combating the absence of the underserved content providers and foster the need for public voices on for consumers of satellite radio.

iClick2media believes the intention of the merger agreements for the open channels will be served by our proposal since:

1. A unified consortium and effort will best promote diversity on satellite radio

2. On July 25, 2008, when the Commission voted to approve the merger between Sirius and XM and as part of the Merge Order accepted the Voluntary Commitment designed by Sirius XM for what it wanted to achieve with the four percent commercial and four percent of non-commercial channels, inadvertently compelled itself to act within the scope and duties granted to the FCC and narrowly tailored the government’s interest by defining what a Qualified Entity was further obligating itself to insure fair competition in the SDARS market for all.

3. The DSRC will allow greater access to the airwaves through its greater outreach to new content producers. As proof of the FCC’s compelling interest to level the playing field as it relates to minorities in radio, a report entitled “Off The Dial” released in 2007, found that women and minorities own just 6 and 7.7% of all broadcast radio stations in the country respectively. The year before in 2006 “Out of the Picture,” an unprecedented report on broadcast television ownership, which found that women of all races own just 5% of the 1,400 commercial broadcast television stations in America. People of color, who make up 33% of the national population (and will be more than 50% by 2050), own just 3.6%. To further the point of the dismal outlook of minority on the dial, the Third Circuit chastised the FCC in Prometheus v. FCC for ignoring the issue of female and minority ownership only proves there is a compelling interest for this governmental agency to act.

4. The DSRC will put in place a Board that will oversee the content that will be placed on these channels. Each of the board members will be able to develop its own content but the content must serve as many of the underserved market as possible.

5. The DSRC will work collectively and independently to acquire new voices for their prospective listener base by creating, developing, and implementing a grassroots marketing campaign to add new listeners to the 24 channels. iClick2Media will also make available to the proposed DSCR its technology that allows the consumer the ability to listen to the programming on new technologies that assist in getting the content to our end user.

6. Should any other small independents active on the docket wish to join our effort, DSRC will be open to accommodating their content on the 12 proposed channels to create a win-win situation and solution for all Lease Term holders.

7. DSCR proposes a standard 10-year lease term for all leaseholders.

8. If DSRC is elected to be the Qualified Entity to lease the channels and divide them as describe herein, then DSRC will propose that programming blocks terms be limited to 2 years.

In doing so, as iClick2Media indicated on the docket, DSRC would:

1. encourage those short-block programmers to continue to produce quality content that satisfies the needs and interests of the audiences; and

2. enable others and maximize the number of content producers that have access to the channels.

The overall goal of telecommunications policy is to maximize efficiency through competition, which is necessary because the market for telecommunications services is a natural monopoly. Sirius XM’s Voluntary Commitment as defined in the Merge Order understood the need to open the channels to a more diverse community. By setting aside 4 percent commercial and 4 percent non-commercial channels for Qualified Entity recognized a keen business need to grab an audience that is growing in leaps and bounds and where the social and private benefits are clearly different.

On the social side the FCC is bound to protect the interest of the people of the United States and that includes opening the broadcast field to minority content providers and the underserved market including access to digital and satellite airwaves.

We welcome further discussions to pursue our proposal from the members of the FCC and other interested parties on the matter of AIR and the proposal for a Diversity Satellite Radio Consortium to be initiated as a viable, indeed the only, logical means to fulfill the interests of the companies involved and the general public.

Regards,


Malik Shakur

CEO American Independent Radio

An iClick2Media Company

cc: Chairman Genachowski

Chairman Copps

Chairman McDowell

Commissioner Clybum

Commissioner Baker

Senator Franken