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According to yesterday’s Star-Bulletin, Sirius will start offering its satellite radio service in Honolulu. However, the service will be transmitted from downtown Honolulu using regular radio, not a satellite signal.Sirius uses terrestrial radio in several other markets, because the satellite signal doesn’t propagate well in areas with tall buildings.

Sirius programming has been available in Hawaii through online subscriptions. Of course, this doesn’t help commuters.

Because XM and Sirius satellites use signal patterns that concentrate on the continental United States, Hawaii residents had to work hard to hear satellite programming on XM or Sirius devices, even when these devices were preinstalled in new automobiles.

XM and Sirius announced their merger plan yesterday. The companies still need FCC approval, which is not a sure thing. The FCC rejected a merger attempt by EchoStar and DirecTV several years ago. Industry insiders believe that the merger may be approved if the FCC considers iTunes, HD radio, and other services as competitive rivals to satellite radio.

Traditional radio broadcasters are lining up against this merger. Companies like Clear Channel, which dominates the Honolulu radio market, do not want new competition from satellite radio. Honolulu’s radio stations, for the most part, cannot compete with several hundred specialized channels from satellites.
The merged company would also have to help current subscribers receive satellite and terrestrial radio signals from both services. XM devices are not compatible with Sirius signals, and vice versa. As the New York Times pointed out yesterday, both companies have had an intense competitive rivalry. In some cases each company may have overpaid to hire on-air personalities (Oprah Winfrey, Howard Stern, Snoop Doog) and get exclusive programming deals (MLB, NFL, Nascar, college sports).

An article in today’s New York Times offers additional discussion about the proposed merger.