Satellite radio is a service that broadcasts audio content over the air using satellites. Services such as XM and Sirius use a spectrum called the “S band” to broadcast digital audio content, which is able to deliver high-quality sound over distances that far exceed the reach of traditional AM and FM stations.
It is a subscription-based service that is offered by satellite radio companies (Sirius, XM, and Worldspace). You can listen to satellite radio through a dedicated receiver in your car or by streaming it on your computer or other device.
Almost 15 years ago, the United States Federal Communications Commission (FCC) allocated a spectrum in the S band (2.3 GHz) for the nationwide broadcasting of Digital Audio Radio Service (DARS). This was an opportunity for two companies to capitalize on the technology and create a new form of broadcasting that would be free from commercials.
CD Radio (later Sirius) and American Mobile Radio applied for licenses from the FCC and paid a total of more than $80 million each to use space in the S-band for satellite transmission. These two satellite radio companies were the first to secure a broadcast license and they were among the first to offer commercial-free programming.
While the early days of satellite radio were shaky, it has evolved into a profitable business model that is used by a majority of households in the US. Satellite radio is now the dominant radio service available in the US, and it provides a wide range of entertainment, including music channels. In addition, it offers a variety of talk and news shows that aren’t found on terrestrial radio. Its popularity has helped it attract controversial radio personalities like Howard Stern, who removed himself from FCC censorship rules to move his show to the satellite medium in 2006.
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