XM Outage Generates Static

**namedmydaughterHALEN** · 05.22.07, 11:44 AM

XM Outage Generates Static
Evelyn M. Rusli, 05.22.07, 1:15 PM ET

XM Satellite Radio

Many subscribers looking to tune into XM Satellite Radio this week were in for a rude surprise. A software glitch that occurred on Monday morning has dragged on for a second day, disrupting service for many U.S. consumers, according to the company.

“We quickly identified the problem and are working hard to return to our normal levels of service,” the company said in a statement on Tuesday. “The problem occurred during the loading of software to a critical component of our satellite broadcast system, which resulted in a loss of signal from one of our satellites.” XM said it expected normal service to resume midday Eastern time.

But will XM’s response be sufficient for disgruntled consumers who received a “no signal” message or splotchy service this week? Online message boards, including XMFan.com, were flooded with reports of suspended service from Spokane, Washington, to Lakeland, Florida. While most customers seemed mildly aggravated with the service, others also chastised the company’s customer-service team for failing to promptly address their needs.

Shares of XM were down 1.4%, or 15 cents, to $10.99, in Tuesday midday trading.

According to analysts surveyed by Forbes.com, if XM can fix the problem swiftly and if it remains a one-time event, then Monday’s snafu will barely dent its reputation.

“XM is at risk of going down due to technical glitches because customers who subscribe to a monthly service expect reliability,” Stanford Group analyst, Frederick Moran, said on Tuesday. “The problem could aggravate users, but unless it happens repeatedly it should not cause great alarm.”

If XM manages to contain the crisis, it could follow the path of Research in Motion (nasdaq: RIMM - news - people ), which experienced a major Blackberry outage in April but emerged largely unscathed after the company issued a comprehensive explanation and quickly patched up the problem. (See: "Little Outrage Over BlackBerry Outage")

However, “If this problem goes on much longer,” then XM is in trouble, David Bank, RBC Capital Markets analyst, said on Tuesday.

XM’s tech blip does not affect its ongoing struggle to merge with Sirius Satellite Radio (nasdaq: SIRI - news - people ), which federal regulators have held off approval of because of anti-trust concerns, but it does underscore the value of a merger.

Alone, XM is not as financially strong. But joining with Sirius, which has strong cash flow and a separate network, could provide the capital for backup capacity to prevent future satellite malfunctions. The team would also have a “greater ability to raise capital going forward” because the merger would eliminate overlapping costs.

**smme5150** · 05.22.07, 02:59 PM

First the Opie and Anthony bullshit now this. These fuckers better get there shit together now or there merger will be fucked. I hope so, fuck those pricks! Uncensored radio my ass!

By the way Namemydaughterhalen, please remove your avatar as every time I see it I have to be hosed down to get me to stop fucking my computer screen!

**Greenpaw** · 05.22.07, 07:12 PM

Originally Posted by namedmydaughterHALEN

However, “If this problem goes on much longer,” then XM is in trouble, David Bank, RBC Capital Markets analyst, said on Tuesday.

They were in trouble way before the outage

**VanRoth07** · 05.22.07, 07:33 PM

Sirius rules, XM drools!!

**Brett** · 05.22.07, 07:41 PM

So XM sucks, what else is new?

They should be grateful for the merger, considering how inept they are.

**VanRoth07** · 05.22.07, 07:52 PM

Originally Posted by Brett

So XM sucks, what else is new?

They should be grateful for the merger, considering how inept they are.

do you have Sirius?

**Brett** · 05.22.07, 08:18 PM

Lucky guess.

**VanRoth07** · 05.22.07, 08:25 PM

Originally Posted by Brett

Lucky guess.

good choice, Howard, Hair nation, Buzzsaw, The Vault, you cant beat It!!

**Brett** · 05.22.07, 08:26 PM

Werd.

I also like listening to the NBA and the NFL.

**FORD** · 05.22.07, 08:28 PM

XM's still working fine here. But I'm probably going to dump them anyway....

**TheresOnlyOneWay** · 05.22.07, 08:45 PM

**Brett** · 05.22.07, 10:17 PM

Originally Posted by FORD

XM's still working fine here. But I'm probably going to dump them anyway....

Sirius FORD.

**FORD** · 05.24.07, 09:11 PM

Originally Posted by Brett

Sirius FORD.

If all goes well, I should be a SIRIUS subscriber next week.

**broken combs** · 05.25.07, 06:18 AM

I work for Sirius so I am a little biased here, but to me there is no comparison between Sirius and XM.

Sirius all the way.

**Bostonian** · 05.25.07, 07:10 AM

Originally Posted by broken combs

I work for Sirius so I am a little biased here, but to me there is no comparison between Sirius and XM.

Sirius all the way.

Too bad your play lists are very shallow. But seeing you do work for sirius and I am the XM person here. What is the feeling over at the doggie with the merger, and what will happen with content like Baseball, Nascar, Football, and etc if the merger goes through? Will you be able to pick up XM content on a sirius receiver and likewise with Sirius content on an XM receiver?