XM Radio Outage Persists
Satellite Radio Company Experiences Second Day Of Software Problems
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(AP / file)
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Section Eye On Technology Daniel Sieberg's reports on computers and technology for the CBS Evening News.
Company officials initially expected to correct the problem Monday evening, but are now advising customers that they expect a fix by midday Tuesday.
"We quickly identified the problem and are working hard to return to our normal levels of service," the company said on its Web site 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."
An XM spokesman said he had no information on how many of the company's 8 million customers were affected. Internet message boards indicated the problem was widespread.
The service is still running on the company's Web site, and XM advised subscribers to tune in online if possible.
XM has four satellites built by Boeing Co. and launched between 2001 and 2006. The first two experienced significant problems and are now regarded as "in-orbit spares," according to the company's annual report.
RBC Capital Markets analyst David Bank said the problem will become an issue for investors if subscribers begin to turn away from the service.
"We'll have to find out exactly what happened, whether it's a systemic problem or just a fluke," Bank said.
Outside of the "headline risk," or bad publicity associated with the problem, Bank said the service problem is not likely to be a long-term concern. "If the issue is cleared up soon, it's probably not that big a deal, unless it's a systemic issue within the network."
The real concern would be if the problems result in lost subscribers, called "churn" in the industry, Bank said, but it is too early to tell if that will result.
Washington-based XM and competitor Sirius Satellite Radio Holdings Inc. are in the midst of trying to combine.
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To me that is saying "My microwave broke; we replaced it with another unit, but we are going to use the old one in case something happens to the new one!" Huh? If it's broke, it ain't a spare!
i'm sure there are some other interesting descriptions of these first two goose eggs.