Amost Two More Years Until Service Is Available in Chrysler And Ford Cars- Two Years???

SCOTTSDALE, Ariz., Jan 10 Reuters reported that satellite radio company Sirius Satellite Radio Inc. said on Thursday it expects its service to be available in Chrysler and Ford cars by the middle of calendar year 2003.

Speaking at the Salomon Smith Barney 12th Annual Entertainment, Media and Telecommunications Conference in Scottsdale, Arizona, Sirius Chief Financial Officer John Scelfo said he expected Ford Motor Co.and DaimlerChrysler AG cars to have its service by mid-2003.

Car companies typically debut their model year cars six months in advance, so they would show 2004 model-year cars by the middle of calendar year 2003. Ford and Chrysler will factory install equipment to transit Sirius' commercial-free satellite radio service.

Shares of Sirius fell 73 cents, or 8.3 percent, to $8.06 in afternoon trading on Nasdaq.

The company expects to to launch its service in Phoenix, Arizona, Houston, Texas, Denver, Colorado and Jackson, Mississippi on Feb. 14. It will roll out additional markets 45 of 60 days later, with a full national rollout on Aug. 1. It will offer different pricing promotions and incentives in each market.

The company said it needs about 2.5 million to 3.0 million customers to achieve a positive cash flow.

Rival XM Satellite Radio Holdings Inc., which already has more than 30,000 subscribers paying $9.99 a month, has said it will be breakeven on the basis of EBITDA (Earnings before interest, taxes, depreciation and amortization) when it has about four million subscribers.