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There has been a lot of talk about SIRI and XMSR. Let me explain one clear difference and why important.

The SIRI system uses three satellites that are in low earth orbit. They are NOT in geosync. orbit. This means they are constantly traveling across the USA. This is important because the receivers in cars must switch between the strongest satellite. That makes the chipsets or brains for these radios VERY complex and difficult to produce.

The XMSR system uses two satellites that are parked in geosync. orbit just like Direct TV. The receivers in the cars pick from the strongest satellite and actually use what is called a diversity system. In other words, they use the best signal.

No one from the company has yet to say that the chipsets in the receivers work. Listen to their last conference call carefully. They say the satellites work. I don't doubt that the satellites are broadcasting something. However, do the receivers work?

The reason that SIRI is rolling out service in 4 large towns is because they use ground antennas to support their service where large buildings block the satellite antennas.

HERE IS THE BIG QUESTION: When SIRI customers drive into another city and into the country on Feb. 14, will the satellites deliver music to their cars? I don't think they will.

No one with the company has shown they work. The Consumer Electronics Show was in Los Angeles where there are ground antenna.

Someone needs to ask the important question. This is the million dollar question.

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