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XM, GM Relationship Detailed

XM, GM Relationship Detailed

Details of the relationship between XM and GM are detailed in the satcaster’s recent proxy statement to the SEC.
XM’s distribution agreement with GM runs for 12 years, from November 2001. GM agreed to install XM radios, and not those of its competitor Sirius. Annual fixed payments to GM range from about $10 million to $130 million through 2009, aggregating at approximately $400 million.
“If the FCC requires the installation of interoperable radios, we will renegotiate the distribution agreement,” states XM in the proxy.
XM has agreed to make its bandwidth available at 128 kbps to GM’s OnStar for audio and data transmissions to owners of XM-enabled vehicles, regardless of whether they are XM subscribers. XM can use the bandwidth until OnStar does.