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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (2224)	2/17/2006 2:40:34 PM
From: i-node	Read Replies (1) \| Respond to of 3386

In the end.. it turned out to be just like every other subscriber model before it. I appreciate your knowledge of the model. But I also think that you are overly, and indiscriminantly, dismissive of the satellite radio business model. I do have a difficult time understanding why Sirius hasn't been able to get its SACs under control; by now, one would think their scale of operations would have gotten them in the ballpark with XM's. But XM has had SACs as low as 54 and CPGA as low as ~105 ... with a $15 activation fee and the average prepayment, it is close to putting them in the clear. As others have pointed out, Q4 is aberration for XM. Xm continues to have a very strong business model -- Sirius, too, although less so. As you get to the level of 20, 30 or 40 million subs the companies begin to make a ton of money.