A recent DOJ decision looks to have completely ignored the long-term impacts of digital data infrastructure on energy conservation and the global climate. I'm speaking of narrowly focusing on music distribution in allowing the merger to proceed between XM and Sirius satellite radio.

According to a recent post of Philip Greenspun -- a friend of my former deputy Cesar Brea -- the new XM/Sirius monopoly will jump the price of satellite data (doubling it or more). This will limit the benefits of mobile data in a wide variety of transport decisions -- giving cars and trucks and airplanes, for example, real-time information on weather and congestion, in some cases along with congestion pricing signals. Monopoly profit maximization will generate negative spillovers through congestion, energy loss, pollution, and global warming.

DOJ allowed the merger when they judged it would not create a monopoly -- for music distribution. It ignored the crippling impact on the public value that would otherwise be created through intelligent transportation.

Here's the link to Philip's post.

Jerry

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