Satellite radio for Europe too?

By L. Meillaud

A veritable technological and financial gamble, satellite radio has found the road to success in the United States. Several millions of motorists are agreeing to pay a monthly subscription to enjoy perfect FM radio reception and exclusive programmes wherever they may be. Plans for Europe are in the pipeline.

When the first satellites were launched less than 5 years ago, nobody at the time would have banked on the success of this new concept of radio broadcasting.

And yet one can see the demand is there, with over 5 million subscribers at XM Radio, the biggest satellite radio operator, and over 2 million at Sirius, its challenger. The two companies have quite similar profiles with over one hundred channels (150 for XM, 120 for Sirius), half of which have no commercials and around twenty of them offering traffic information and weather forecasts. The subscription also costs the same: $12.95/month.

To benefit from this service, you must have a car radio that is compatible with satellite radio. The solution is to choose this option at the manufacturers (which all offer it, American marques and importers alike), replace your original car radio with an adapted product (Clarion, Alpine, Pioneer, etc), or opt for a portable radio, which can be used both in the car and at home. Auto parts manufacturer Delphi, for example, offers mobile terminals (Sky Fi, My Fi, Roady), which receive XM Radio programmes. (Photo opposite: Portable devices are growing in number - XM Roady )

Innovative services

The advantage of these radios is being able to listen to themed music programmes (pop, rock, classical, jazz) and sports or economics programmes on demand.

Beyond the one-upmanship that the two operators engage in to offer exclusive concerts and talk shows (Howard Stern, the enfant terrible of US radio at Sirius), satellite radio above all opens up new horizons for navigation assistance.

Thus XM Radio offers a local traffic service that supplements the guidance information on the original GPS of certain manufacturers (Cadillac, Honda), and of the Pioneer brand. The information is thus more precise and is displayed in real time. The broadcasting of videos by satellite in addition to music is also under consideration. (Photo opposite: satellite radio offers traffic service)

A service soon to reach Europe?

It is clear that American operators and some auto parts manufacturers, including Delphi, dream of replicating this success story in Europe. Also amongst the candidates is the company Worldspace, which already offers satellite radio programmes in Europe, Africa, the Middle East and Asia. (Photo opposite: Operators shower their subscribers with themed packages - Sirius control)

The context is, however, a little different. Unlike America, several languages are spoken in Europe and FM is well developed throughout the territory. Moreover, satellite radio is in direct competition with DAB (Digital Audio Broadcasting), which is notably supported by the Germans, as well as DRM (Digital Radio Mondiale) which radio broadcasters including RTL could very soon make widespread.

The future will no doubt see a combination of these technologies, with a signal received by satellite that could be sent by radio relay to certain zones (especially in built-up areas).

The hardest part is getting people to agree to pay to listen to the radio, until now considered a free and universal service!

Magazine - 01/03/06