Re: XM and Sirius Consider Merger
Klay Anders Jim Haynes wrote:
Actually, four companies participated in the auction for the two satellite DARS (digital audio radio service) licenses. Each winning bidder got half of the available spectrum, or 12.5 MHz.
The bidders:
- American Mobile Radio Corporation (XM) won with a bid of $89,888,888.
- Digital Satellite Broadcasting Corp. dropped out of the auction.
- Primosphere dropped out of the auction.
- Satellite CD Radio, Inc. (Sirius) won with a bid of $83,346,000.
My guess is that if only one company had entered the market, the FCC wouldn't have issued any DARS licenses. Among other reasons, the fact that several potential licensees petitioned the FCC for DARS licenses led the FCC to allocate the spectrum space in the first place.
Parenthetically, if XM and Sirius do merge, I'm curious about which satellite fleet they'll use. Their current fleets are not compatible: XM uses two satellites in geostationary orbit, while Sirius uses three satellites in Molniya orbit.
References:
- FindLaw Library: Satellite DARS Auction to Commence
Posted 5 years ago by Neal McLain in General Telecommunications Forum
