WorldSpace™ Satellite Radio has received approval from Switzerland’s Office Federal de la Communication (OFCOM) to operate terrestrial repeaters that will work in conjunction with its existing satellite network to provide Swiss consumers with a subscription-based satellite radio service.
WorldSpace Satellite Radio will use the 12.5 MHz of L-band frequency (1479.5 to 1492 MHz) harmonized for satellite radio in Europe and for which WorldSpace has priority rights throughout Europe, the Middle East and Africa. The Company plans to offer a mobile service as early as 2009 on the continent, beginning with Italy; and in Bahrain and United Arab Emirates (UAE) - places where WorldSpace has already received authorization to launch its satellite/terrestrial hybrid radio service.
The Company’s European strategy is to roll out its service on a sequential country-by-country basis, beginning with Italy, where aftermarket radios are expected to be available to consumers in early 2009 and OEM (factory installed) radios in several Fiat models by late 2009. In addition to Italy and now Switzerland, the Company expects to secure four more licenses in 2008, from the other major European markets.
“We are very pleased at the efficiency with which the OFCOM has granted us this approval,” said Noah A. Samara, Chairman and CEO of WorldSpace Satellite Radio. “As we begin planning the content line-up for our Italian launch and subsequent European markets we hope to secure shortly, including the UK, Germany, Spain and France, we hope to be able to parlay our unique variety of news, sports, music and entertainment programming into a line-up that is equally attractive to Switzerland s diverse cultures.”
Although not large, the Swiss market is attractive for satellite radio, given the demographics that fit its early adopter profile. For example, it has a population that exceeds 7.5 million, with a per capita GDP of approximately US$39,800 - a figure that is larger than that of each of the big five European countries targeted for service by WorldSpace. There are approximately four million automobiles in the country with new car sales expected to rise to about 320,000 in 2010.
(Source: WorldSpace)
on Mar 21st, 2008 at 14:48
It ceases to amaze me how this company stays in business. This press release reads as though they haven’t yet discovered radio in Switzerland. The mountains create another problem - the need for terrestrial repeaters because the satellite hangs low in the horizon. People forget that New York is on the same latitude as Madrid. And is Switzerland waiting for pay radio? I think not. There are two many reasons why this dream is going to fail. Their share price does not inspire confidence.
on Mar 21st, 2008 at 19:00
Here’s a link for those who want to follow WorldSpace’s share price on Nasdaq: http://finance.yahoo.com/q?s=WRSP
The adjustable chart on the right might be especially helpful.
On August 4, 2005 some people bought WRSP for $26 a share. Yesterday the stock closed at $1.26. It looks pretty bad. But not as bad as, say, Bear and Stearns…
The good news is that WorldSpace rose 7.14% in after-hour trading last night. (The US stock markets are closed today due to Good Friday). I guess that jump had to do with a new Swiss contract. I’ll be curious to see how it trades on Monday.
Insterestingly enough, Reuters company research rates WorldSpace’s stock “Outperorm.”
Standard&Poor’s stock report on WorldSpace sounds much more negative, though. It gives the lowest grades possible to both investability of the stock and its relative strenth. Note that S&P chose not to give its usual trading guidance and price target for WRSP.
on Mar 25th, 2008 at 08:39
From what I read they’re currently trying to find someone dumb enough to buy their (ageing and past it) existing satellites and lease them back in order to stay in business …
http://rapidtvnews.com/index.php/worldspace-considering-sale-&-leaseback.html