XM Satellite Radio Holdings Inc. (XMSR) is getting some bad reception, taking into consideration new difficulties they are faced with this week on top of bad revenue and slow growth in subscribers.
XM announced another member of its board of directors resigned, the second this year, as well only adding 285,000 subscribers compared to 441,000 from their competitor Sirius Satellite Radio Inc. (SIRI). Add to that the filing with the Federal Communications Commission showing that XM has been operating more than 200 antennas at power levels beyond legal limits and it is clear XM is having an off year.
XM still has more subscribers at 7.2 million compared to Sirius's at 5.1 million but might fall short of their goal of 7.7 million to 8.2 million by the end of the year. They would need to add 500,000 in the fourth quarter to accomplish that goal.
This could interfere with signals sent out by other broadcasters operating adjacent to those frequencies, said Paul Sinderbrand, a lawyer with the Wireless Communications Association International who represents companies with licenses to operate in the frequencies adjacent to the signals used by XM and Sirius, as reported by this WashingtonPost.com article.
"XM certainly seems to have a corporate inability to comply with the FCC's rules," Sinderbrand said. "This is all rather astonishing, especially given XM's past compliance issues."
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