WASHINGTON, May 22, 2007

XM Radio Outage Persists

Satellite Radio Company Experiences Second Day Of Software Problems

  •  (AP / file)

  • Section Eye On Technology

    Daniel Sieberg's reports on computers and technology for the CBS Evening News.

(AP)  XM Satellite Radio experienced a second day of outages Tuesday after software problems resulted in the loss of one of the network's four satellite signals, the company said.

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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Add a Comment
by griking May 23, 2007 2:06 AM EDT
Oh please people, stop crying. Unfortunately sometimes stuff happens. It wasn't a system wide outage so XM probably didn't know which subscribers were effected and which weren't. Were they supposed to make a courtesy call to all 8 million of their subscribers? And if I called and noticed that their lines were constantly busy or had 1/2 hr hold times I would think that common sense would tell me that i wasn't the only one experiencing problems and therefore they were working on it. Did anyone even bother to visit the XM website to see if outages were being reported there? Of course not, people just seem to enjoy ******** too much.
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by oandafan May 22, 2007 8:33 PM EDT
I don't understand the comment that the two satellites that experienced problems are now classified as "Spares."
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!
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by jayce1066 May 22, 2007 5:57 PM EDT
I was on hold last night for 22 minutes listening to dead air before I got to a live person who then took another 5 minutes of reading from his script before he admitted xm was having service problems.
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by ustraveller May 22, 2007 5:53 PM EDT
Amazing! I try repeatedly repositioning my home antenna while wondering why I can no longer receive a signal, time passes and I keep wondering why there isn't a signal, and XM never contacts me in any way. H o w e v e r, when my credit card is stolen and XM makes a single attempt to charge my monthly subscription, XM gets the charge rejected, the phone calls come flooding in filling my voicemail with frantic alert notices. I guess it is a matter of priorities by XM as to what is really important with their subscribing customers.
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by bobnjersey May 22, 2007 5:53 PM EDT
[The first two experienced significant problems and are now regarded as "in-orbit spares," according to the company's annual report.]

i'm sure there are some other interesting descriptions of these first two goose eggs.
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