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Posted: Tuesday, 21 October 2008 5:16PM

Satellite Radio Merger: No Immediate Tech Synergies



It could take up to 15 years for the different satellite radio platforms developed by Sirius and XM to be fully integrated, according to Mel Karmazin, who heads the merged Sirius XM Radio Inc. organization. The combined company has 19 million subscribers.

Speaking at this week’s Convergence automotive electronics conference in Detroit, AutoTech Daily reported that Karmazin said it will take time to unify the satellite radio networks and receivers used by the two services, which employ incompatible chip technologies. The companies completed the long-in-the-making merger in July.

There are expected to be some near-term benefits for the new partnership, however.

Karmazin points out that OEMs that signed exclusive deals with one of the former rivals now will have access to the programming of both providers.

Sirius XM has no immediate plans to expand into Europe or Asia, but Karmazin does not rule out licensing its technology to other companies in these markets.
 


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