MyMomsBox
08-10-2006, 01:32 PM
We should push XM to have OnA included in the channels offered....
By J. Kyle Foster and Don Jeffrey
Aug. 10 (Bloomberg) -- XM Satellite Radio Holdings Inc. and
wireless carrier Alltel Corp. agreed to sell satellite radio over
Alltel's mobile phones to boost revenue, becoming the second pair
of U.S. companies to offer such service.
About half of Alltel's 11 million customers in its 35-state
market can listen to 20 XM music channels via their wireless
phones for $7.99 a month starting today, the companies said.
XM, the largest U.S. pay-radio service, follows smaller
competitor Sirius Satellite Radio Inc., which began selling its
service through Sprint Nextel Corp. phones almost a year ago. The
companies are looking for ways to increase revenue as customers
use their wireless phones more for information and entertainment.
``We put their brand front and center with ours,'' Wade
McGill, Alltel senior vice president of product management, said
in an interview. ``Consumers want to go with the names they know
and trust.''
Shares of Little Rock, Arkansas-based Alltel rose 16 cents
to $54.18 at 9:49 a.m. in New York Stock Exchange composite
trading. They have risen 4.9 percent this year. Washington-based
XM Satellite, down 59 percent this year, fell 5 cents to $10.90
in Nasdaq Stock Market composite trading.
`Natural Opportunity'
XM Satellite is adding listeners at a slower pace than
Sirius, which brought on more customers each of the past three
quarters since adding shock-jock Howard Stern to its lineup. The
deal with Alltel ``in strong likelihood'' will bring customers
over to XM's full service, which is priced at $12.99 a month, XM
spokesman Chance Patterson said.
XM had 6.89 million subscribers at the end of the second
quarter compared with Sirius's 4.68 million.
``This is a revenue-generating opportunity for us as well as
for Alltel,'' Patterson said. Neither company would disclose the
details of how the revenue will be split between them.
Alltel, the largest regional wireless carrier in the U.S.
and the fifth-largest U.S. provider, is promoting text and
picture messaging as revenue per user from those types of
services rose 61 percent in the second quarter. The company spun
off its traditional telephone business in July to focus on the
more-profitable wireless unit.
``We have a diverse customer base and we have to offer a
diverse group of products,'' McGill said. ``I don't think any one
is the silver bullet to say this is going to drive all of your
data'' revenue.
Users of the service will be able to view the title and
artist of each song and the album on which it appears.
Although Alltel is XM's only mobile partner, the deal is not
exclusive, Patterson said. ``Down the line, we will explore other
opportunities,'' he said.
--Editors: Moody (gfh).
By J. Kyle Foster and Don Jeffrey
Aug. 10 (Bloomberg) -- XM Satellite Radio Holdings Inc. and
wireless carrier Alltel Corp. agreed to sell satellite radio over
Alltel's mobile phones to boost revenue, becoming the second pair
of U.S. companies to offer such service.
About half of Alltel's 11 million customers in its 35-state
market can listen to 20 XM music channels via their wireless
phones for $7.99 a month starting today, the companies said.
XM, the largest U.S. pay-radio service, follows smaller
competitor Sirius Satellite Radio Inc., which began selling its
service through Sprint Nextel Corp. phones almost a year ago. The
companies are looking for ways to increase revenue as customers
use their wireless phones more for information and entertainment.
``We put their brand front and center with ours,'' Wade
McGill, Alltel senior vice president of product management, said
in an interview. ``Consumers want to go with the names they know
and trust.''
Shares of Little Rock, Arkansas-based Alltel rose 16 cents
to $54.18 at 9:49 a.m. in New York Stock Exchange composite
trading. They have risen 4.9 percent this year. Washington-based
XM Satellite, down 59 percent this year, fell 5 cents to $10.90
in Nasdaq Stock Market composite trading.
`Natural Opportunity'
XM Satellite is adding listeners at a slower pace than
Sirius, which brought on more customers each of the past three
quarters since adding shock-jock Howard Stern to its lineup. The
deal with Alltel ``in strong likelihood'' will bring customers
over to XM's full service, which is priced at $12.99 a month, XM
spokesman Chance Patterson said.
XM had 6.89 million subscribers at the end of the second
quarter compared with Sirius's 4.68 million.
``This is a revenue-generating opportunity for us as well as
for Alltel,'' Patterson said. Neither company would disclose the
details of how the revenue will be split between them.
Alltel, the largest regional wireless carrier in the U.S.
and the fifth-largest U.S. provider, is promoting text and
picture messaging as revenue per user from those types of
services rose 61 percent in the second quarter. The company spun
off its traditional telephone business in July to focus on the
more-profitable wireless unit.
``We have a diverse customer base and we have to offer a
diverse group of products,'' McGill said. ``I don't think any one
is the silver bullet to say this is going to drive all of your
data'' revenue.
Users of the service will be able to view the title and
artist of each song and the album on which it appears.
Although Alltel is XM's only mobile partner, the deal is not
exclusive, Patterson said. ``Down the line, we will explore other
opportunities,'' he said.
--Editors: Moody (gfh).