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Technology Stocks : CDRD (CD Radio)

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To: BARRY ALLEN who wrote (506)	12/21/1997 3:21:00 AM
From: Dale Baker	Read Replies (2) of 904

Barry, let's include the key paragraph which you omitted. Just don't drive too fast when you are reading it: Among the doubters is the Consumer Electronics Manufacturers Association, an industry trade group, which simulated satellite radio in San Francisco last year using a NASA satellite. That testing "demonstrated significant technical problems" with satellite radio at the high frequency that will be used by CD Radio. The association's tests found "extensive signal blockage by terrain, buildings, foliage and even street signs" that would result in service outages in urban areas, and make it nearly impossible for CD Radio to meet its goal of providing "nearly seamless" coverage throughout the U.S. The association estimates that CD Radio would have to install hundreds, if not thousands, of supplemental transmitters in urban areas to maintain a high-quality signal. The cost of such transmitters could prove prohibitive. On top of that, the association maintains there could be reception problems in vehicles traveling at more than 30 miles per hour, regardless of terrain.

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