LAUNCH DELAY SPOILS BIG DAY FOR XM
Delayed launch of XM Satellite will have “no material financial impact” on firm, XM said, but delay came during week in which XM had hoped to create major splash for new satellite radio service. Sea Launch halted countdown of XM satellite Mon. when minor out-of-specification condition was detected. Condition was resolved within minutes, but short launch window didn’t allow adequate time to recycle rocket, officials said. Sea Launch rescheduled flight from Pacific Ocean platform for first of 2 geostationary satellites for Feb. 28, with launch of 2nd satellite pushed back to mid-April. Satellite analyst William Kidd of C.E. Unterberg Towbin said delay isn’t “ material” because company still had time to test system and meet its commercial launch objective. However, launch failure “could be disastrous” to XM in its effort to keep up with Sirius, one satellite analyst said.
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Since command to halt flight was issued shortly before ignition, but after some engine preignition processes had started, 50-day launch cycle must start again. “The tight proximity between the abort command and ignition” made it necessary for rocket engine to be recycled and rocket components cleaned, industry official said. Process usually takes 2-3 weeks, he said. Rocket must be transported back to Sea Launch home base in Long Beach, Cal., 11-day trip, for recycling and cleaning. Round trip of 22 days coupled with 2-3 weeks for recycling and cleaning result in 50-day delay, provided no other problems occur. Industry official said most people weren’t previously that Sea Launch delays were “considerably longer” than others.
Before launch delay, XM had been moving quickly toward deployment with flurry of announcements designed to boost confidence in service as it attempts to keep pace with rival Sirius, which already is testing service. XM showcased service, programming and products, including 24 “plug-and-play” models of XM radios, at Consumer Electronics Show in Las Vegas. CEO Hugh Panero said company wanted to give “the world a glimpse of the future of radio” and he believed XM and Sirius would change radio in same way “cable changed TV.” On Fri., company signed agreement with Sears to market and distribute service through retailer’s 2,200 stores. XM also gave 20-channel preview of service with 4 stations going live, allowing XM to demonstrate major components of satellite system, including uplinks and downlinks, terrestrial repeaters, chipsets, radios.
XM and Sirius plan to begin commercial service later this year, Sirius in June and XM shortly thereafter. Kidd gave Sirius demonstration high marks, saying it “worked well” in test vehicle that he drove around Las Vegas listening to 80 channels that were broadcast daily to limited audience. Field tests also are being conducted in N.Y. “With a considerable portion of the company’s compelling programming in place, actual service quality was the largest outstanding substantive item,” Kidd said: “With this now behind the company, we feel increasingly comfortable that a large number of consumers are more than willing to pay the small monthly fee for programming choice, signal quality and reach.”