Tuesday, October 9, 2001

XM and Sirius to compete for satellite radio empire
By Victor Drabicky
Skiff Staff

When a new technological advance first becomes readily available to consumers, it usually hits with fierce competition between two almost identical products offered by two very different companies ending with one in bankruptcy and the other with a pile of cash and worldwide recognition.

In the past 20 years, the battles have been so fierce that they have almost become interesting to follow. In the 1980s, it was BETA vs. VHS. Do you really have to ask who won this one? In the 1990s, there was a short stint of DVD vs. DIVX. Does anyone even remember what DIVX was?

Now that the battle this decade between the two satellite radio providers XM and Sirius is starting to make itself clear, even Vegas bookies are beginning to take bets.

Late last month, XM became the first satellite radio system provider in the world. Later this year, Sirius will become the world’s second satellite radio provider. So will the two duke it out in a no-holds-barred fight to the death? Count on it.

On Sept. 25, XM radio launched satellite radio, the newest toy designed to keep people entertained while driving. Satellite radio allows the listener to listen to one radio station anywhere in the country. For example, if you like country music, you could listen to XM’s “Highway 15” station from coast to coast with no need to change frequencies as necessary with common radio receivers.

So how does it work? Representatives at both XM and Sirius said satellite radio works through a collection of satellites and several ground repeaters that broadcast the same signal throughout the country. The satellites blanket the United States with satellite radio signals while ground repeaters aim to broadcast the signal into harder to reach places the satellites cannot hit. In an effort to make service uninterrupted in dense urban areas and in tunnels, XM launched two satellites into space and installed more than 200 ground repeaters across the nation while Sirius boasts three satellites, but only about 90 ground repeaters.

Score: Sirius-1, XM-0.

After the signal is broadcast, cars with a special satellite radio receiver and antennae will be able to receive the signal. Depending upon which service you buy, XM radio offers 100 stations and 34 commercial-free music channels while Sirius offers 100 stations, 50 of which are commercial-free. Each service offers a variety of music, news, sports, weather, comedy and various other programming which differ slightly between the two services. Although prices for the receiver and the antennae are identical for both services, they do not come cheap.

For an RF modulator, an adapter to a current radio receiver in your car, starting price is $250 plus another $80 to $100 for the satellite radio antennae. If you decide to forgo the adapter and buy a satellite ready radio, AM/FM/SAT, prices start at $480 and can exceed $2,000. Along with the cost of the receiver, XM charges a monthly fee of $9.99 while Sirius charges $12.95 for service.

Score: Sirius-1, XM-1.

Junior speech communications major Justin Meeks said price is the main reason he will forgo getting a satellite radio.

“It is a great idea and I would love to have one, but it is not feasible to spend $400 and pay a monthly fee just to listen to the radio,” Meeks said. “If the prices come down a bit, I would probably look into it a bit more seriously.”

Despite Meeks’ concern of cost, XM radios are selling.

Best Buy sales associate Tim Kumm said sales are higher than he had expected and customers are happy with the service.

“Sales are going pretty well,” said Kumm. “It seems like everyone that has bought one has been very happy with it and a bunch of them have come back and told me how great it is. I haven’t heard a complaint yet.”

Although XM is only marketed in Dallas and San Diego, Calif. right now, plans are to extend service to the entire southwest by mid-October and the entire United States at some point in the near future. Sirius in the final phase of testing for their radio and expects service to begin before the year is over.

Final score: Sirius-1, XM-1.

With just a few months before the battle begins, the two are dead even. Rest assured though, when the dust settles, there will be only one left standing. The question is: Which one will it be?