A Novel Approach to Satellite Digital Audio Broadcasting for Australia

A novel method of using the Globalstar LEO constellation to provide 25 channels of digital-quality, audio broadcasting (DAB) to vehicles and homes throughout Australia is described. The low-cost approach will attract broadcasters who want to reach listeners throughout Australia especially in areas of low population density. By adaption of existing satellite radios, transmission systems and the agreements to use Globalstar constellation and ground station equipment, a nationwide broadcast system is feasible. This paper explores some of the technical, regulatory and business factors that will affect the adoption, and drive business success. A conceptual economic model is used to forecast revenues to show that a profitable business is possible,and replacement of the current satellites with ones tailored for SDARS is discussed. Options of obtaining program source material are summarized. 1.0 Satellite Radio Broadcasting in the USA In 1997, the Federal Communication Commission issued its Report and Order granting two companies; CD Radio and American Mobile Radio Corporation (AMRC) the right to use 12.5MHz of spectrum in the band 2310-2360MHz for Satellite Digital Audio Radio Services (SDARS), including nationwide use of terrestrial repeaters [1]. Since then, Sirius Satellite Radio (previously CD Radio) and XM Satellite Radio (previously AMRC) have launched high-powered satellites, built ground stations, national broadcast studios in New York and Washington DC, and assembled extensive music libraries. The total cost an estimated $1billion [2], [3]. They have recruited experts from the recording, broadcast and entertainment industries to create a completely different listening experience for the subscriber. Both service providers are offering 100 channels of music, news, sports and talk radio, across America, for about $10/month. Audio quality has been rated close to CD quality. Sirius are using Lucent’s perceptual audio codec SPACv4 and a statistical multiplexing method named, Splex. While XM are now using CT-aacPlus with Neural Audio’s pre-processing prior to transmission. Aftermarket car and home receivers are now available nationwide, and prices have already fallen to around $200. Both companies have agreements with automobile manufacturers to supply new cars with an SDARS receiver option. XM and Sirius satellite radio offered their services to a limited market initially, to test advertising & marketing strategies, measure quality of service, and to prepare the terrestrial repeater networks. XM is ahead of Sirius in its launch date by approximately 5 A Novel Approach to Satellite Digital Audio Broadcasting for AustraliaJuly 12, 2002 1 months, and to date, has succeeded in securing more than 136,500 subscribers in just 9 months from the date of launch [4], exceeding the company’s own targets -see Figure 1. XM’s target is to reach 350,000 subscribers by the end of this year, and the fact that STM Microelectronics, the manufacturer of the radio chipsets announced on April 11 that it had shipped 355,000 radio chips to date, supporting the this target. Skeptics have stated that the demand is a result of an on-rush of early, techie-type enthusiastic adopters, but in a recent radio interview [5], senior executives of both Sirius and XM Satellite, said that their analysis of the customers shows that a broad range of people are being attracted. FIGURE 1. XM Satellite Radio Subscriber Growth (Complied from SEC reports and press releases) According to XM satellite radio, “during the initial 60-day period following our national launch, we exceeded 30,000 subscribers, which represents a faster adoption rate than for any other consumer audio product introduced over the past 20 years, including CD and DVD players” [6]. On February 14, 2002 the second service provider Sirius Satellite Radio launched its service in seven states, and continued a progressive roll-out, providing coverage to all states this month. Using a constellation of 3 satellites (2 always active over the USA) in a highly elliptical orbit, this system is arguably technically superior, providing the advantage of a high elevation angle (>60 degrees) to all users in the desired service area, thus minimizing likelihood of path blockage and multipath propagation effects [7]. The service which is priced at $12.95 per month provides similar programming to XM Satellite but with fewer advertisements an XM Satellite Radio Subscriber Growth