James, there are some real differences between CD Radio and WorldSpace, and an FCC license is required to serve the U.S.
CD Radio will be able to serve moving automobiles, WorldSpace serves a transistor-looking radio. You're right about Africans not being able to spend $200 on sets. The plan is to have rich Americans subsidize the sets via tax-deductable contributions. The real motive is unclear since the company will not identify its financial supporter, who is believed to be an Arab. Perhaps spreading Islam is a goal, but I don't know. Seems like making money is not the primary mission.
As for competing against CD Radio, that will come after WorldSpace takes up its option to acquire 80% of AMRC-XM Radio. In order to sell receivers in the U.S., bill customers, etc., you need an FCC license to use the radio waves. Blackmarket is possible (eg. U.S. DBS in Canada), but it's not likely here, I think. WorldSpace has an experimental license from the FCC for AfriStar, which doesn't require them to divulge ownership. If they ever apply for a real license, which they say they will, they must disclose ownership.
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