Satellite radio is a type of digital broadcast that transmits audio signals over large areas with greater clarity and consistency than conventional radio. The signal is transmitted to one or more satellites orbiting Earth, and bounced back to specialized receivers on the ground, commonly located in automobiles and home stereo systems.
Satellite radio services typically offer a hundred or more channels, including music, news and talk programming. Many are advertisement-free because of the subscription model.
The major satellite radio companies are WorldSpace, Sirius Satellite Radio and XM Satellite Radio. They were all founded in the 1990s and competed in the North American market.
Unlike terrestrial radio, which is limited to geographic regions, satellite radio can reach across an entire continent. It operates on the 2.3 gigahertz (GHz) S band of the electromagnetic spectrum in the United States and the 1.4 GHz L band elsewhere.
It also uses a specialized antenna to pick up the signal. The antenna is placed on top of the satellite, and its position can be adjusted by a computer to ensure coverage wherever the user is in the world.
In the US, XM provided digital programming directly from two high-powered satellites in geostationary orbit above the equator and a network of ground repeaters to provide gap-free reception throughout the contiguous United States. It could be received in Canada and Alaska, as well.
In 2008, the two original North American satellite radio companies, WorldSpace and Sirius Satellite Radio, merged to form Sirius XM. The merger was intended to reduce losses and create economies of scale for the new company.
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