Federal Communication Commission that is FCC allocated a spectrum in the "S" band that is frequency of 2.3 Giga Hertz for nationwide broadcasting of satellite based Digital Audio Radio Service (DARS). At that time only four companies applied for a license to broadcast over that band. The Federal Communication Commission gave licenses to two of these companies in late nineties. Also known as compact disc Radio earlier but presently Sirius Satellite Radio and American Mobile Radio presently XM Satellite Radio paid more than eighty million dollars each to use space in the S-band for digital satellite transmission. These days there are three space-based radio broadcasters namely Sirius Satellite Radio, XM Satellite Radio and World Space Satellite radio. These satellite radio companies are comparing the significance of their service to the impact that cable television had on television around thirty years ago. The audience won't be able to pick up local stations using satellite radio services, but they will have access to hundreds of stations offering a variety of music genres. Every company has a different plan for its broadcasting system, but the systems do share similarities.

The main key components of the three satellite radio systems are Satellites, Ground repeaters and Radio receivers. Working of satellite radio is like that of satellite television. That is you have to purchase a receiver and pay a monthly subscription fee for a certain number of channels. There are slight variances in the three satellite radio companies' systems. The XM and Sirius satellite radios offer about hundred channels under their current plans. If both the Federal communication commission and the Department of Justice approve the merger of the two service providers then things might change a little. After the merger of the two companies happens, the merged company will offer a few options. Then you can subscribe to fifty channels from either XM or Sirius for about seven dollars, or you could get a "best-of" package of 100 channels selected from both networks for about fifteen dollars. But if in case you are already an XM or Sirius customer, you wouldn't have to replace your old radio. But if you want to pick and choose your own channels from both networks, you would have to pay a little extra and purchase a new receiver. All this depends on whether the merger is approved or not. But no one will ever want the two companies to get out of the scenario as people are really happy from the commercial free music which satellite radio offers. In all satellite radio helps us a lot.

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Tymon Hytem has worked in the electronics field for the past 15 years. He enjoys helping people decide on electronic gadgets from telephones to XM Radio and choosing the perfect XM Satellite Radio system for their needs.