The Sirius Satellite Radio and XM Radio projects are facing delays in service introduction due to financial difficulties. The satellite networks are designed to provide high-quality digital radio services to US customers, primarily car drivers.
Sirius services have been put back to early next year following a delay in the production of receiver components. The company's chief executive David Margolese has resigned. It has also decided to expand testing of the service to six additional US locations. The company's shares have fallen 94% in a year, but says it has $392 million that will ensure its viability into late 2002.
Meanwhile, Boeing is to provide $66 million to assist XM Satellite Radio to introduce its digital radio service. The company is "refocusing its marketing strategy on key early consumer segments" in light of the current financial market conditions and the aftershock of 11 September. The two XM Radio satellites were built by Boeing Satellite Systems.
Source: Flight International
