Satellite Radio

Sirius and XM merger

Any discussion of satellite radio has to start with the highly controversial Sirius-XM merger, which would create a satellite radio conglomerate valued at approximately $13 billion, including a net debt of about $1.6 billion and involving a total of 14 million satellite radio subscribers.

Both companies, neither of which has yet made a profit, have been tangled up in an expensive feud to acquire talent. The highest profile deals include Sirius' inking of a five-year, $500 million contract with Howard Stern and paying out $220 million for exclusive rights to NFL games. XM is spending $650 million for an 11-year deal with Major League Baseball and $55 million for three years with Oprah Winfrey.

The proposed merger has had Wall Street and business analysts speculating for months about whether or not the U.S. Department of Justice and the Federal Communications Commission (FCC) would approve it. Federal legislation is set up to protect consumers from a monopoly, which is why in 1997, during the original sale of broadcast rights, the FCC set aside two satellite slots and forbade a merger to promote competition and avoid a monopoly. That rule would obviously have to be changed to approve the merger. The companies have to make a case that the market within which they operate encompasses on-demand MP3s, podcasts and/or traditional radio, nullifying the idea that the merger would create a monopoly. Furthermore, despite their combined debt, they would have to demonstrate that the merger would be beneficial for consumers, as well as provide better choices and better prices.

The satellite radio merger has prompted opposition from both the House of Representatives and powerful political lobby groups. In June, 72 members of the House of Representatives signed a letter to FCC Chairman Kevin Martin and then U.S. Attorney General Alberto Gonzales, denouncing the merger and calling it "devastating to consumers." The National Association of Broadcasters (NAB) and several major consumer advocacy groups argue that the merger will create higher prices and fewer choices for satellite radio users, and they are quick to criticize promises made by both companies to provide price and selection guarantees to subscribers in the event that the merger is approved.

However, Sirius CEO Mel Karmazin remains firm that merging the companies would save hundreds of millions of dollars, translating into savings and more selection for subscribers. In a joint statement, Karmazin and XM Chairman Gary Parsons gave details of post-merger offerings, including a 50-channel package that’s almost half the price of today’s cheapest subscription. Also, "a la carte" options would give consumers the ability to choose 50 or 100 channels from XM or Sirius schedules (not including "premium" offerings) for $6.99 or $14.99 per month, respectively. This option is scheduled to be available within a year of the merger, and it would require the purchase of a new radio capable of processing channel-by-channel requests. Karmazin said that these new radios would sell "at the same prices" as currently available satellite radio hardware.

However, the companies say that current subscribers would not be forced replace their current equipment and would be able to maintain their current XM or Sirius subscriptions at the now current cost of approximately $12.95 per month. In addition, the companies say that current subscribers to either satellite radio service will be able to expand their package to include "select" channels from the competing service for an additional $4 per month, or $16.95 total. This would mean a significant savings, for as it stands now, satellite radio users who want both Sirius and XM programming must pay two separate $12.95 subscriptions. New subscription packages featuring "family friendly" programming, including selected music, sports, talk and news are expected to be introduced shortly after the merger, if it’s approved.

Though the FCC is officially slated to make its decision in December 2007, delays in these sorts of decisions are common, and experts say things could drag on well into 2008. One analyst indicated that a recent FCC urgent request for more information is a positive sign for the satellite radio companies because, "if the Department of Justice were close to denying the deal, the need for such detailed information would not have arisen in the first place."

Regardless of the outcome, both XM and Sirius satellite radio have drawn up company promise documents to existing customers, assuring them that their current service will not be affected and that no equipment will become obsolete should the merger be approved. In the meantime, consumers should choose the service which best meets their specific listening preferences and the device(s) that accommodate your listening habits (e.g. listen more at home than in the car).

How to get satellite radio

Satellite radio has a number of benefits over commercial radio. In addition to (mostly) ad-free, static-free sound, satellite radio is (as of this writing) free of censorship. Artist and title information for current programming is shown on your receiver's display; you can also receive satellite radio streams over the Internet. If you are frustrated by commercial AM/FM radio and their surfeit of advertising, satellite radio offers greater variety purportedly without static and without losing stations while driving, which is common with terrestrial radio (though many users offer personal experiences that indicate otherwise).

To listen to satellite radio, you'll need a receiver dedicated to either Sirius or XM, as no currently available receiver can play signals from both services. You can choose from four types of equipment: Receivers strictly for home use, in-dash receivers for cars, transportable units that can be moved between home and car, and portable units that can be used anywhere you can get reception.

Most receivers need to be hooked up to your home stereo, car stereo or a boom box to be heard, because they don't have an integrated antenna or speakers. A few units are totally self-contained. The Tivoli Model Satellite (*est. $300) is a tabletop radio that can play AM, FM and Sirius satellite broadcasts. The Pioneer Inno2BK for XM (*est. $170) and Sirius Stiletto 2 (*est. $330) are portable radio/receivers -- you can listen through standard headphones or connect to a home stereo or car stereo via an adaptor or dock.

Sirius and XM signals are transmitted from ground stations into space, where they are received by their own satellites. These satellites, in turn, beam the signal back down to radio receivers that have been programmed to receive and unscramble the digital data. Both Sirius and XM utilize ground repeaters in addition to their satellites to ensure good reception in urban areas where a clear line-of-sight is sometimes a problem.

You can also listen to satellite radio online. Online listening is free for most subscribers to either service, but sound quality won't be the best as the bit rates are paltry -- 32 Kbps for Sirius and up to 64 Kbps for XM. XM sells online access to non-subscribers (*est. $7.99 per month). Sirius also offers online-only subscription (*est. $12.99 per month), but sound quality is better thanks to its much higher 128 Kbps bit rate. Sirius radio subscribers can upgrade to high-bit-rate online access for an additional $3 per month.

Dedicated home satellite receivers

If you don't care about listening to satellite radio in your car or when walking around, there are several dedicated home satellite radio products to choose from.

Polk Audio is one of the largest speaker manufacturers in the United States, and its Polk XRt12 XM tuner (*est. $230) gets mostly favorable reviews in a number of publications. CNet.com's editors say the XRt12 sounds noticeably better than many other XM radios, and Sound & Vision concurs in its comparison test. The Polk is a stereo component that must be connected to a pre-amp or A/V receiver. The Polk can display track and title information on a TV, and it can record song information for later reference. If you want the best satellite radio sound quality at home, the Polk is an excellent choice.

One negative is that the Polk XRt12 lacks support for XM Neural (XM HD) surround sound, which can be found in some newer XM compatible receivers, such as the Onkyo TX-SR605 (*est. $500) . This full-featured A/V receiver is not an XM-receiver, but it is XM (and Sirius) compatible. To receive satellite broadcasts with the TX-SR605, you need to add an accessory tuner such as the XM Mini Tuner (*est. $30) or Sirius Connect Home Tuner SC-H1 (*est. $50).

The Tivoli Model Satellite AM/FM/Sirius (*est. $300) is a stand-alone Sirius satellite radio that gets a good rating from editors at CNet.com and more favorable reviews elsewhere. This elegant, all-in-one model delivers AM/FM radio plus the Sirius channels in a modestly sized cherry-wood cabinet. A large, blue Sirius LCD display shows the title of the current selection, the artist and the channel. Reviewers at CNet.com cite the Tivoli for its rich sound, flexible options and reception. There's no recording function, and there are no controls for treble or bass. Furthermore, the Model Satellite is mono only (though you can add an additional speaker for stereo sound).

Dedicated home satellite receivers such as the Polk XRt12 and Tivoli Model Satellite have some inherent drawbacks. First, they are expensive, and the cost doesn't include the price of the service (separate receivers in home and car require additional subscriptions). Furthermore, none of the reviewers of these products addresses the paradox of using high-end equipment to listen to compressed audio streams. In contrast, no manufacturer has introduced an audiophile MP3 player -- another compressed music format.

The other big issue with using a satellite receiver indoors is placement. The units must be connected to a wired antenna, which generally needs to be near a window or fed outside. This might be fine if you're able to place the receiver near a window, but a problem if you want to use it somewhere else.

If you want satellite radio at home, using a home adapter kit in conjunction with a portable unit is a cheaper, if less elegant, solution. If you are also in the market for a home audio or A/V receiver, selecting one that's satellite-radio ready might be more practical.

Portable satellite radio hardware

There are actually two types of portable receivers, and they are easily confused. The cheapest units are "plug-and-play" receivers. These can be used in your home or in your car, but for each, you'll need to hook them up to a stereo (your car stereo, home stereo or boom box). Some of these receivers do let you listen with a pair of headphones, but you can't actually listen to live radio natively -- you can only listen to MP3s or recorded satellite radio. A couple of new products, like the new Delphi SkyFi3 (*est. $120) have headphones (*est. $35) with an integrated antenna, so you can listen while away from car or home.

The second type of portable receiver lets you listen to live satellite radio through normal earphones or speakers. These truly portable satellite receivers have integrated antennas, and they are bundled with batteries. Some include kits to connect to your car stereo or home stereo. Short battery life is a consistent complaint among reviewers of all these products. Many reviewers also recommend upgrading the headphones. The biggest concern for potential users is reception dropouts. As with cell phones, such dropouts are more annoying or startling than an AM station fading in and out in signal strength. Plug-and-play receivers usually cost $100 or less. Truly portable satellite radios such as the Stiletto 2 can cost over $300.

iPlug and play XM receivers

In our last report, the Delphi XM RoadyXT (*est. $55) was chosen as the best basic XM plug and play receiver. Its owner-posted comments at Amazon.com gave the RoadyXT higher ratings than any other satellite-radio receiver. PC Magazine doesn’t select it as an "Editor's Choice," but nonetheless gives the RoadyXT the magazine's highest five-star rating. This year, the RoadyXT maintains its position as the best basic receiver. It is still the smallest and lightest XM receiver on the market, and it offers not only basic functions, but also additional features, such as stock and sports tickers and the TuneSelect feature that alerts listeners when their favorite songs or artists are on a channel. In a very brief review, Orbitcast (a site devoted to satellite radio) and several of its readers criticize the RoadyXT for only having a two-line display. However, price is a major selling point for the RoadyXT.

For listening in a car, the RoadyXT satellite radio includes a cassette adapter and an FM modulator called XM SureConnect, which requires placing a wired clip onto an existing car antenna. XM SureConnect replaces the wireless FM transmitter found in earlier versions of the RoadyXT, which are otherwise identical. The wireless link was eliminated in the RoadyXT -- and some other current XM radios -- in response to FCC concerns about interference with radios in nearby cars and homes.

One positive with XM SureConnect is that it improves sound quality and reduces the possibility of interference from FM radio stations -- both of which are issues with wireless links. The negative is that installation is more complicated, so many users prefer to have it professionally done, increasing cost. In addition, XM SureConnect is not compatible with cars that have retracting antennas or roof mounted antennas. However, it can be used with cars with the antenna imbedded in the windshield, as well as conventional fender-mounted whip antennas, which does cover the vast majority of vehicles on the road. Older RoadyXT radios with wireless transmitters can still be found at some retailers.

For home use, Delphi sells a home kit (*est. $50), which includes a dock, power cable and extended antenna. Delphi also offers several "boom box" and "table radio" solutions that include built-in speakers. Examples are the Delphi Premium Sound System tabletop radio (*est. $130) and Delphi Boom Box (*est. $80) . The RoadyXT can't play MP3s or record XM radio, but it's inexpensive, especially if you want to listen in your car.

The Delphi XM XpressRC (*est. $125) garnered praise from CNet.com and elsewhere, but it’s fairly expensive for a basic plug-and-play XM receiver. In fact, most of the reviews lauded its features and functionality, but concluded that its price tag might be a hindrance.

That said, the Delphi XpressRC does have one significant feature that could make its hefty price tag more palatable to some -- the ability to pause, play and rewind up to 60 minutes of programming. Reviewers loved this feature, as well as the full-color, split-screen display. The split-screen allows users to view what’s playing on up to three different channels on the right side of the screen, while displaying the current channel on the left side. The radio features a remote control, a display that adjusts brightness from day to night and quick channel navigation with the option of 10 preset channels. One reviewer did complain about small design issues (namely a small power button) and an under-utilized knob control. The XpressRC lacks a wireless transmitter. It comes with a cassette adapter for car use, but XM SureConnect is an extra-cost accessory.

The Delphi SkyFi3 (*est. $120) is a more expensive plug-and-play XM satellite radio receiver with a valuable extra -- it doubles as an MP3 player. The SkyFi3 is a total redesign of the popular SkyFi2. It has a larger, nine-line monochrome display and ships with an included car kit. It records much more content than the SkyFi2 satellite ratio -- up to ten hours in its internal memory -- and has the same TiVo-like chasing playback feature. Plus, the SkyFi3 comes with a Micro SD card slot (card not included). This lets you load up with MP3 and WMA files from your music collection, allowing the SkyFi3 satellite radio to double as a portable MP3 player.

The SkyFi3 ships with a set of standard headphones, which is fine for use when listening to recorded content. You can also listen to live XM satellite radio on the go by adding a headset with a built-in XM antenna, such as the Delphi SkiFi3 Standard Wearable Kit (*est. $20).

The SkyFi3 has the same controls and interface as the Pioneer Inno2BK satellite ratio (see below), except that the SkyFi3 allows for three separate bookmark lists, so you can separate your favorites by channel, genre or individual. Reviewers loved the large 2.8-inch display, the MicroSD expandability and the reliable signal reception, even with the headphones. The SKyFi3 does include a wireless FM transmitter, but its power levels have been capped to address the same FCC concerns outlined above. Unfortunately, most complaints we see focus on the weakness of the FM transmitter. The lack of a color screen is also a disappointment.

Truly portable XM radios

If you want to listen to live XM radio while on a bike ride or at the beach, you'll need a portable receiver with an integrated antenna so you can carry it as you would an MP3 player. This means you don't need to hook it up to an amplifier -- all you need are headphones or speakers. This type of receiver is more expensive, however, and they may not be great indoors if their antennas can't easily access satellites. Most let you record XM radio or load MP3 files -- handy for when you're not outdoors or near a window.

The Pioneer Inno/Inno2BK (*est. $170) receives more uniformly favorable reviews than any other portable XM satellite radio receiver. The Inno and Inno2BK are identical, but the Inno2BK is compatible with XM SureConnect technology and requires a different kit for car use.

You can listen to live XM satellite radio through headphones or hook up the Inno2BK to your car or home stereo. It also has some added perks. For instance, if you set up an account with Napster's music-subscription service, you can press a button to buy the song you are hearing on XM from Napster. The Inno2BK is about the size of an iPod, and it weighs 4.5 ounces. According to reviews at CNet.com, the Inno's battery only lasted for five hours of XM playback -- that's far less than most portable MP3 players.

PC Magazine selected the Pioneer Inno as its "Editor's Choice" among portable XM radios. CNet.com's editors give it their top score for a portable or multipurpose satellite radio receiver. Editors especially like the Inno's sound quality.

The Inno2BK comes with a home dock, home antenna, AC power adapter, earphones, travel adapter, software and remote control. A car kit (*est. $60) is optional. It has 50 station presets for XM. Half of the 1GB of storage capacity is for recording (time shifting) XM satellite radio, and half is for MP3s or WMA files. Users note that portable reception is sometimes patchy, but it’s improved when used with accessory headphones that include an XM radio antenna.

The Samsung Helix (*est. $300) is a fraternal twin to the Inno. While CNet.com ranks the Inno and Helix as equals, PC Magazine gives the Inno a clear nod because of the Inno's look and feel. Features-wise, they are identical. However, the Helix is currently more expensive, and its availability is more limited, though it can be ordered on the XM radio website.

Plug and Play Sirius receivers

Since Sirius has substantially increased its market share, many new and updated products are available to Sirius subscribers. Near the end of last year, Sirius unveiled four new satellite radio products, and this year, the long awaited Stiletto 2 and Sportster 5, both updates of existing products, were introduced.

The Sportster 5 (*est. 230) has a stylish new, slim-line profile combined with all of the well-known features of the Sportster series. Some of the product’s highlights are its 2.7-inch multi-color, six-line display, 30 preset channels, S-Seek Alert so you don’t miss your favorite artists, songs or sports and the Sirius Replay function for up to 60 minutes of live programming. Initial professional reviews of the satellite radio are mostly a run-down of its multitude of features, with consistently positive talk of its stylish design and its 15-color customizable backlight display. It comes with a car dock, remote control, FM extender antenna and mounting equipment. Although it includes an FM transmitter for wireless connection to a car radio, most users have found it to be the worst aspect of earlier Sportster models. Given the FCC's concerns about power levels of wireless transmitters as noted above, that's unlikely to change much in the Sportster 5.

If you are interested in something more basic and less expensive, the Sirius Starmate 4 Replay radio (*est. $70) is a good choice. The Starmate 4, which is the newest member of the popular Starmate series of Sirius satellite radios, handles the basics well, and it even has a few tricks of its own. Those include a five-line graphic display, a 44-minute replay function and Game Alert to tell you when your favorite team is playing.

This plug-and-play satellite radio receiver comes with a car kit that includes an antenna, dock, cigarette-lighter type charger and vehicle mounts. The Starmate 4 was designed with an ultra-slim form-factor to increase the ease of portability, while still maintaining a large, wide-screen display. Most owners of the Starmate satellite radio applaud the new, slim design, but a few reviews stated that with the vehicle docking and the mount, it ends up being as thick as some earlier models. For listening at home, the Starmate 4 links up with the Sirius Universal Docking System (*est. $50). For the money and the features included, the Starmate 4 emerges as an easy choice as the best basic Sirius satellite radio receiver.

Truly portable Sirius satellite radios

The Sirius Stiletto 100 (*est. $160) was the first truly portable Sirius satellite radio -- meaning you can listen to live Sirius radio through earphones while you're outside. The unit has 2 GB of storage for MP3s and recorded Sirius content. It can pause and rewind live Sirius satellite radio broadcasts. Its notable new feature is Wi-Fi connectivity -- helpful for streaming Sirius radio when you're not outside, but are within range of a Wi-Fi hot spot or network.

CNet.com gives the Stiletto 100 its highest ranking among satellite receivers. The Stiletto is taller and thicker than the Pioneer Inno for XM, but it looks great, with a shiny black finish. Its 2 GB internal memory can record Sirius radio, or be loaded up with MP3 files from home (however, there's only 1 GB of storage for your own tracks). Compatibility with Yahoo! Music means you can download tunes from Yahoo!'s music subscription service. The Stiletto comes with an A/C adapter, antenna headphones and two rechargeable batteries -- a slim battery and an extended-life battery.

The Stiletto 100 satellite radio is not without some warts, however. One is its size -- many complain that it’s just too big for a radio designed for portable use. Another is that Wi-Fi support is limited to just 802.11b networks. The latest Stiletto, the Sirius Stiletto 2 (*est. $330) , addresses those complaints directly with enhanced 801.11g Wi-Fi support and a slimmer and lighter package -- by about 25 percent. In addition, there's a microSD memory card slot that lets you add removable/expandable memory to supplement the built-in 2 GB of internal flash memory.

Otherwise, the feature lineup is very similar to that of the Stiletto 100. That includes the ability to record live programming, Sirius Replay (pause, rewind and replay) for up to 60 minutes of live radio, Game Alert and Game Zone for sports fans, and one-touch recording of up to 10 hours of songs. Owners say that the new Altec Lansing headphones are much improved over the Stiletto 100 headset, and they appreciate the size-adjustable menu read-out and handy six-way navigation media dial for one-handed access to the Stiletto’s features. The only complaint noted is that the Stiletto 2 satellite radio requires the purchase of a new car kit (*est. $50) and home kit (*est. $50), since the Stiletto 100-compatible equipment will not work with it.

Factory installed satellite radio

Currently, Sirius is built into 15 car manufacturers’ vehicles and XM into 12 car brands. Factory-installed satellite radio has been a major source of subscribers according to the financial website, The Motley Fool. In October, the site reported that factory-installed radios had been responsible for a 37-percent increase in subscribers over the past year for XM. Interestingly, there aren’t many aftermarket in-dash satellite car stereos. We did not find any reviews of these units, which require professional installation.

Notable XM and Sirius programming

The websites for XM and Sirius have detailed lists of music, sports and talk stations, but the following is a quick rundown of some of their unique offerings (as of November 2007). Both offer many of the same news channels, including CNN, FOX News, BBC and Bloomberg Radio.

	XM Satellite Radio	Sirius Satellite Radio
Sports	Major League Baseball NHL PGA Tour Big 10, PAC 10 and AAC college football and basketball ESPN Radio (sports talk)	NFL, NBA NASCAR Wimbledon tennis Barclays English Premier League (English soccer) College football NCAA college basketball
News	The Weather Channel Public Radio International C-SPAN radio	CNBC NPR World Radio News (WRN)
Talk/Celebrity	Air America Oprah and Friends America Right Opie & Anthony- Virus E! Radio Disney	Howard Stern Martha Stewart Living Radio Sirius Left E! Radio Disney Sirius Patriot
Music	Bob Dylan show XM LED (Led Zeppelin 24/7) Casey Kasem's American Top 40 In the Swing Seat with Wynton Marsalis	Metropolitan Opera Radio E Street Radio (Bruce Springsteen 24/7) The Grateful Dead Channel (The Dead 24/7)
Specialty	Live concerts Radio Classics (old time comedy and drama)	Playboy Radio OUTQ (gay and lesbian)

Our Consensus Report shows how many times products are top-ranked by reviewers included in our
All The Reviews Reviewed chart.

# of Picks	Model (With Retailer Links)	Details from Amazon.com
4	Pioneer Inno/Inno2BK (XM) (*est. $170)	details
3	Delphi XM RoadyXT (XM) (*est. $55)	details
3	XM XpressRC (XM) (*est. $125)	details
2	Sirius Stiletto 2 (Sirius) (*est. $330)	details
2	Delphi XM SkyFi3 (XM) (*est. $120)	details
2	Sirius Sportster 5 (Sirius) (*est. 230)	details
2	Sirius Starmate 4 (Sirius) (*est. $70)	details
1 each	Tivoli Model Satellite (Sirius) , Samsung Helix (XM) , Onkyo TX-SR605 (XM and Sirius ready) , Sirius Stiletto 100 (Sirius)

Right now, satellite radio is in a sort of limbo, while everyone waits to see if the XM-Sirius merger will actually take place. Still, some new and updated products are being introduced, and both companies have promised that no current radios will become obsolete should the merger go through -- although you might need new equipment for some future subscription packages or “a la carte” programming. For right now, critics and users say that the Delphi RoadyXT (XM) and Sirius Starmate 4 (Sirius) are the best choices among basic satellite radios. Both can be used in the car or in the home -- though you'll need a home dock and perhaps other equipment for the latter. The Pioneer Inno2BK and Sirius Stiletto 2 are good picks for truly portable radios. As for which service is best, music choices are similar -- and extensive -- but XM and Sirius each have strengths and weakness in areas such as sports and talk/news. Check the channel lineups for yourself and see whose programming best fits what you want to hear.

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