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Tuesday, May 3, 2011

Coming to SiriusXM later this year: new 2.0 technology, higher subscription fees

CEO Mel Karmazin tells analysts that the new 2.0 technology provides more channel capacity, and the company will use part of that to respond to requests from Hispanic car dealers for additional Spanish-language channels. Karmazin says "with 50 million Hispanics in the U.S., we see significant upside potential." The new 2.0 receivers will also feature an EPG, or electronic program guide, along with "more DVR-like functionality such as pause, rewind and re-play, as well as record and playback capabilities."

Re: Subscription prices: Sirius agreed with the FCC in 2008 not to raise base prices for three years after the merger with its rival, XM Satellite Radio. That restriction expires this Fall, and Mel Karmazin tells analysts the likely increase will be "more than inflation."

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