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No. of Recommendations: 3
I like your post. It is intelligent and well thought out. However, I have three points to raise:

1) There is no telling whether or not Sirius will be the better service (technically) until the units are out. You assume that what you hear from Sirius about the better angles means significantly fewer repeaters. That may turn out to be less true than you think.

2) You say that by 2009 there is no guarantee that GM will continue to want XM. I must disagree. GM is a large holder of GMH (Hughes) and Hughes owns many shares of XM. I think that the relationship is sound.

3) You discount any possibility tht XM and GM will work out some kind of deal for servicing the debt to GM. I sincerely doubt that GM would bankrupt XM in order to collect payment.

I believe that these three factors my make XM more appealing than you give it credit for. Is is more appealing than SIrius, that's for the readers to decide. But your points about Sirius are thought-provoking. Sirius is very highly leveraged, so the shareholders reap more of the benefit if Sirius turns a profit. Of course that leverage has a bad side in that Sirius may be forced make many concessions in order to maintain the business in the short to mid term.
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