Car Satellite Radio

Foreword

Today, there is more to radio than AM/FM. Now, you can not only listen to your cassettes, CDs, MP3s, but also satellite while driving, or at home. I heard about this digital and satellite radio on the news. Before researching the net and asking local stereo shops questions, I had thought satellite radio for the car was for the rich or well to do. It is within reason for you and I to have!! I would suggest scanning through the whole page before clicking any links. First, let me explain the difference between digital and satellite radio.

Digital Radio

Digital radio or HD radio is not the same as satellite radio. Digital radio can be compared to HDTV (high definition television). Here is a current article written June of 03. An article from July of 01 further examines the two different concepts. At the bottom is their views on the "future of radio".

HD Radio works like this: To listen to the service, consumers need new - and relatively inexpensive - radio equipment adaptable to both the HD system and old analog radio. Then, when they tune in to a station providing the signal, at first they'll hear the old analog signal. Then, after about seven seconds, the signal switches over to HD and "the sound suddenly expands out in all directions," Mr. Laird says.

Because the HD Radio signal is concealed within the AM and FM radio programming already being broadcast over local radio stations, if listeners opt not to buy the new HD radios their old ones will continue to work just fine. Only at some future point, if HD Radio stations decide to go completely digital, could analog radios become obsolete.

Snip from a more technical article that is of concern to radio stations:

Digital radio employs two land-based methods, both of which require radio receivers to be adapted in order to receive digital audio signals. HD (high definition) Radio (formerly IBOC, for in-bound out-channel) technology, developed by iBiquity Development Corp., uses a new modulation scheme requiring broadcasters to upgrade their broadcasting equipment. It works by wrapping digital signals around the old analog signals.

Radio stations can broadcast both digital and analog signals, but will have to upgrade their transmitting equipment for the digital broadcasts, a very expensive proposition that can cost stations between $30,000 and $200,000, depending on the condition of their current equipment. HD Radio is not subscriber-based, but listeners will have to buy a receiver that could cost $100 more than a standard AM/FM radio. Because of "growing concerns over the audio quality of iBiquity's low bit-rate codec," the National Radio Systems Committee (NRSC) digital audio broadcasting subcommittee recently temporarily suspended its standard-setting process around IBOC. So, consumers and broadcasters who choose HD Radio may find themselves at a technological dead end.

Satellite

There are two major players in the satellite subscription market. If only I had bought stock in early '02 (long term investment).

The concept of beaming commercial-free CD-quality radio down from geosynchronous orbit to cars and trucks across the country was undeniably cool when first introduced in the early 1990s. The initial player in the business -- Sirius Satellite Radio -- had no trouble raising enough money in the capital markets' bubble years to spend a billion dollars on infrastructure to make it happen.

A short while later, along came a second player -- XM Satellite Radio -- with a slightly less ambitious and costly plan. And it, too, easily raised hundreds of millions of dollars in debt and equity to put the idea on an upward flight path.

Predictably, however, the technology took a lot longer to get off the ground than anyone suspected, and both companies suffered long delays in putting their birds in the air. Sirius launched at around $4 in 1994 and climbed as high as $69 in 2000. But, as hope faded, debt mounted and creditors cried for blood or bankruptcy court, the shares crashed all the way to 40 cents two months ago. Meanwhile, shares of XM, which launched at around $12 in 1999 and climbed as high as $50 in 2000, sank as low as $1.66 in November.

What happened

XM:  At that moment of critical need, XM executives pulled one of the boldest David-and-Goliath moves in recent financial history, telling General Motors to put up or shut up: Defer payments, or see their already-advertised-and-sold service disappear down a rat hole called Chapter 11. The ultimatum worked, as the tiny company persuaded the giant automaker to give it $450 million in financing ($200 million in new funds and $250 million in payment deferrals) in exchange for notes that converted into common stock at $3.18 a share, almost double the price at the time.

Sirius:  Burned numerous times already, investors continued to shy away from Sirius as they fretted about one last major concern overhanging the company: Why, they wondered, had Ford and DaimlerChrysler -- which had previously said they planned to install Sirius in their cars to counter GM and Honda -- failed to announce any specific models due to get the service? Was it possible that Ford and DamilerChrysler would jilt Sirius and bolt over to the XM camp? If that were to happen, Sirius would be in the most serious trouble of its long and troubled life.

On April 16, however, the Mercedes-Benz division of DaimlerChrysler announced it would offer an integrated Sirius system on most of its 2004 line and BMW announced it would install the line in its hot new MINI Coopers. And last week, Ford finally announced that it would install Sirius' system in its Mustang, Thunderbird, Lincoln and Mercury lines. Car rental giant Hertz also announced it would provide Sirius in cars at 33 airports across the country. That was enough to send the shares from 69 cents in mid-April to their current perch around $1.30.

About those auto industry relationships: XM has an exclusive pact with GM whereby XM pays GM $40 million per year and offers the carmaker a cut of revenue. In return, GM installs XM radios at the factory level in many of its popular car lines. Sirius recently signed up Ford and Chrysler as partners (terms of the deal weren't released), but the radio technology there is installed at the dealerships, not on the factory floor. "The dealer installation brings an additional layer of uncertainty into the process," says Susan Kevorkian, an analyst with IDC. "The dealers have to be trained, and some will consider it to be more of a priority than others. There's less variation in factory installation." Moving those relationships to the factory floor will be a tough battle for Sirius, and some investors obviously think a good chunk of that $135 million will help it move along.

Let me understand this: car manufacturers invested heavily 10 years ago, looked on while both companies almost went into bankruptcy - then bailed them out. For an added feature to sell a high end car? Is this a replay of the VCR; vhs vs betamax? I think not, the FCC wants both companies to survive. Too much money backing both and competition is a must for choices. The consumer will decide the future - by their choice of who to subscribe to! This will depend on the offerings of each subscription package.

Programming

Explore each satellite site thoroughly. Much can be learned before going to a dealer and asking questions about setup, installation and options. Circuit City would be my choice of dealer if one is within reason. Local car audio installation places might be helpful and most are dealers (products expensive). Sears is a dealer but does not install - at least you can visually see the products. Look for mail in rebates or packages (sometimes older products) on equipment.

Pieces of the Puzzle

Many cd and cassette receivers 2001 and newer are either xm or sirius satellite ready. 2002 and older models display 8 character reading and 2003 models display 16 character reading. To many, this is important to consider. Match tuner display wants with receiver, universal tuners will have a dash mounted display. If upgrading car audio system from cassette to cd player, understand visual display basics against cost. When shopping for receiver, find out whether its an '02 or '03 model. If shopping online for xm receiver, you may be able to download the manual and browse features before purchase; xmfan.com.

The tuner box enables the radio to receive and transmit the satellite signal. Tuners are manufacturer receiver source compatible only (trunk mounted if radio is xm or sirius ready) or universal (dash/trunk mounted). '03 universal tuner models offer a dash mounted display capability in 16 character readout, for non satellite ready receivers. A hint on pioneer tuners: all GEX-P are for pioneer only receivers and GEX-FM are used with any brand radio. Universal tuners are being discontinued by many manufacturers - they are upgrading only their brand tuner with their brand satellite ready receiver. Sony is moving towards a satellite receiver/modulator/car kit, as are others. Pioneered by Delphi, this concept should replace universal tuners.

Terk is the most popular brand for satellite radio antennas. Radio and satellite antennas are different, as is an XM antenna and a Sirius antenna. They are roof mounted or window mounted. I like the XM3 model for XM and the TRK-SR20S for Sirius, both very low profile design.

A modulator turns a satellite signal into an FM signal. Some are used with universal tuner purchase, sometimes bypassed depending on receiver outputs. Its needed if choosing skifi or audiovox receivers with a car kit system setup. Go the fm modulator install and not the cassette route (poor quality). The skifi or audiovox display is the satellite receiver - you will be getting high quality FM music thru the car speakers.

Satellite Ready casette or cd player is simply the character display (which is misleading because we generally call it a receiver) - how many lines or how many characters display on line. Presently you can not enter a program by the number, you have to scroll or have it in the memory of your preset buttons. It just controls the display of xm bands you listen to. This is all it means, antenna (outside vehicle) receives signal and sends to tuner,the tuner (trunk mounted) deciphers the signal and delivers song info and audio thru cable to player (on dash) for display (explain) and sound thru speakers.

If you are planning on installing a system yourself, give these two forums a look: xmfan or siriusbackstage. Both have installation info and pictures on all models of vehicles and systems.

Hardware partnerships for XM and for Sirius.

My Two Cents...

Before sinking $225 to $600 into a car satellite radio setup, I had better know what I am doing. Once I decide on either XM or Sirius installation - there is no turning back. Presently, neither system hardware is compatible with the other. This page is not about one company being better than the other, but of preferences in programming. Both will seek to improve and expand in choices and service. . If finances permit and you like both; subscribe to one for the car and the other for home. XM has the skifi receiver and home kit, Sirius has the audiovox receiver and home kit A home system may be less important if you have digital cable. Here is a recent article on plug and play.

Online Shopping

Crutchfield.com is a good place to start looking for online satellite radio products. Each item starts off with essential info (below picture), be sure to click the "whats included" box. This site explains items well, but is expensive. I would compare prices with Etronics.com. If you use a "compare prices" site like Pricegrabber.com or Mysimon.com and find an item real cheap - make sure it is not refurbished. Check seller ratings and shipping charges.

Cost Estimates

$150 - $250  satisfied with satellite ready radio, online shopping of tuner brand that matches receiver and satellite antenna ($150/200 - you install), universal receiver and antenna ($200/250 - you install). I would estimate professional installation to be about $50, which is the way I would go. If something goes wrong, say bad reception, I want to go back and have them check the antenna. You may not have bought the parts there - but they did the install. A clean install is essential, whether you do it or someone else does it.

$300  If you are pleased with you car stereo setup and receiver is not satellite ready, you may want to go to Circuit City and add the Delphi Skifi unit and car kit, everything purchased (including antenna and modulator) and installed thru Circuit City for about $300 (2 year warranty would add an extra $50 - not). You may want to purchase the home kit ( $70 ) - delphi unit is portable and use on your home stereo for satellite radio. Another option is the XM Roady.

$425   if upgrading from cassette to cd is important and getting satellite radio, maybe think about purchasing this package deal online. Yes, its yesterdays technology at a relatively cheap price (simple cd player with xm ready radio and tuner/cable). The sacrifice is an 8 character readout on receiver (explain). It would be a simple install at local stereo shop, changeout about $45 and tuner/antenna install about $50. Get the adapter plug in wire piece ($30) for car so installer is not splicing into a wiring harness for power (splice may void electrical warranty on particular harness).

non satellite ready radio in dash  rough estimate of between $150 to $225 for satellite ready CD/FM/AM unit, $150 to $225 for tuner, $50 for antenna, plus installation costs of $100 to $125 (varies for cost of adapters, face plates, etc.)

My Purchase Compromise

I had to match wants with budget, always conscious of needs vs wants in life. First decision to make was service and I chose XM. I won't give my reasons because this page is not about one being better than the other. I decided against above mentioned package deal because of 8 character display and buying yesterdays technology. I would be unhappy with purchase within a year, although I would be getting digital sound now. I looked into the skifi and car kit with circuit city installation, but I would be getting fm sound thru speakers and they crimp delphi unit into harness for power. The advantage of that setup is being able to have home satellite music (unit portable) with one subscription (home kit accessory).

Upgrading from cassette (2000 model car with factory radio) to cd was important to me. I chose pioneer for inexpensive receivers (want simple cd player) and the DEH3500XM over the 2500 series because of display and few extra features in sound control. Pioneer seems to be upgrading tuners also, my thinking is they are serious about satellite car audio. I purchased the cd receiver from Etronics. This was step one for me to listen to satellite radio.

In six months I will purchase online either the GEX P910XM tuner or newer (maybe an upgrade will come out for xmas shopping). Pioneer is not making any more universal tuners. I will get a Terk antenna at that time (by then they may have a new design choice). I will have the installation done locally. My wants of cd upgrade and listening to near cd quality songs will be met in 2 steps.

Yahoo Financial

Yahoo has a Sirius and an XM message board in their business and finance section. Read this message first.

XM for the PC

You can even purchase XM PCR and listen to satellite radio on your windows platform pc (not available for mac or linux users). The software interface lets you to see what's playing across all 100 channels. The XM PC Receiver connects to your computer via an available USB port. The USB connection provides power to the unit and a link between the software interface and the XM PC receiver. You must also connect an audio cable from the XM PC Receiver to the audio "Line In" on your sound card or to a pair of powered speakers. Visit the FAQ page for a better understanding.

WI FI

Just thought I'd add this section for the "hey of it" - five years down the road, will the wifi band @ 2.4 ghz interfere with the satellite radio band @ 2.3 ghz?

The satellite radio operators are betting that their petition will succeed at the FCC because the commission's rules are designed to prevent interference to licensed systems, which they operate, from unlicensed systems, such as wireless LANs.

The wireless LAN industry contends not only that they don't cause interference, but that the "pro-business" FCC headed by Chairman Michael Powell will side with them because of the enormous size and scope and the reach of their industry compared with that of satellite pay-radio operators. The satellite radio industry has two operators and about 20 receiver manufacturers vs. 145 Wi-Fi manufacturers.

thru my eyes ...... Satellite Radio Future

I see car audio being maxed out in five years, from the manufacturers standpoint. They are just as important for promoting satellite radio as is xm and sirius. Within 3 years I see the beginning of satellite or satellite ready home stereo receivers. It is only logical for manufacturers to move in this direction. Within five years I see digital radio getting serious about development. Radio stations will upgrade from analog to digital because they are loosing advertising revenue due to less people listening to FM. Syndication will be caught in the middle between FM/digital and satellite.

Who would have thought 30 years ago paying for cable TV as commonplace and five years ago Gateway concentrating on Home Entertainment services promoting their 42 inch plasma wall screen.