http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2006-08-11T182002Z_01_N11412618_RTRIDST_0_MEDIA-XM-FCC-UPDATE-1.XML&rpc=66&type=qcna

XM Satellite Radio Holdings Inc. (XMSR.O: Quote, Profile, Research) on 
Friday said U.S. regulators have requested additional information on its 
radio receivers that also contain FM transmitters.

XM and rival Sirius Satellite Radio (SIRI.O: Quote, Profile, Research) 
in recent months have instructed some of their manufacturers to stop 
making radios equipped with wireless transmitters. Such radios are 
capable of receiving satellite signals and transmitting them to 
traditional radios.

XM, which was originally contacted by the FCC in April, said the FCC on 
Aug. 7 requested information on the company's Sportscaster, Roady XT, 
MyFi, Airware, Tao and Roady 2 devices. XM said it has requested its 
manufacturers suspend production of these units. It plans to "respond 
promptly" to the FCC request.

"We are completing the necessary design or installation modifications, 
as appropriate, and conducting additional testing for XM radios to meet 
applicable FCC requirements," the company said in a statement. "We 
expect to obtain new certifications for modified XM radios on an 
expedited basis."

XM reiterated that it does not know if the FCC-related issue will have a 
material impact on its business.

Sirius said on Thursday that two of its radio manufacturers had resumed 
making and distributing radios previously found not to meet federal 
rules. Sirius said the manufacturers got new grants of authority after 
the FCC confirmed the devices were in compliance.

Shares of XM slipped 40 cents, or 3.7 percent, to $10.77 in afternoon 
trading, while Sirius shares eased 2 cents to $3.75, both on Nasdaq.



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