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Technology Stocks : Sirius Satellite Radio (SIRI)
SIRI 21.78+1.7%3:59 PM EST
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To: TheAlaskan who wrote (1175)12/4/2004 4:47:42 PM
From: i-node  Read Replies (1) of 8420
 
Is the 9.3 million dollar quarterly payment for the install fee or does that also include the satellite hardware?

The 9.3 mln is actually an amortization of the expense for which the liability to GM was created initially. It includes the cost of XM's "distribution agreement" with GM. The cost of subsidies is, I believe, all included in XM's SACs definition. XM isn't paying for the radios in full, however -- only a subsidy.

If Sirius is awarded a temporary or at least a sole "initial" Canadian satrad monopoly, GM is ready to install Sirius equipped vehicles for the Canadian market.

I haven't seen anything on this; I know that GM Canada has entered into an agreement with CSR (XM). I think the likelihood of Canada selecting one provider or the other is rather slim. The question in my mind is to what extent CHUM is involved.

Aside from the political aspects, is the XM contract with GM limited to USA or is it a N. American contract? XM would not be in a favorable position if they were contractually required to pay GM for Sirius installs for the Canadian market "if" XM failed to obtain an initial Canadian CRTC license.

XM's deal is only for GM vehicles sold in the USA. XM will not be paying for installs in Canada under ANY circumstances (it will be CSR paying, not XM). XM's role in Canada, as I understand it, will be limited to a 15% revenue cut from CSR, as well as a 30% ownership (profits) interest determined after the expense of the 15% revenue cut. XM claims it will be out of pocket zero money for capex on the CSR deal (i.e., CSR pays for repeaters, any required money for OEMs, etc.)
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