Forbes is reporting that XM Satellite Radio is rumored to be dropping it's long standing relationship with Boeing, in favor of Loral, to build it's next powerful new satellite estimated to cost more than $200 Million.

While no official decision has been released, it's rumored that other industry officials have been discussing the decision, and Loral's internal email system has leaked the confirmation that XM made its choice.

Boeing manufactured the XM-1 and XM-2 satellites that turned out to be faulty, which resulted in the launching of XM-3 in February and the planned launch of XM-4 in 2007 to replace the dying birds. These buggy birds left many at XM with a salty taste in their mouth and they've been battling it out with insurance companies to make sure they don't need to foot the bill. Loral coincidently manufactures SIRIUS' satellites.

According to WSJ Online, this new satellite is intended to be a spare to back up XM's four other satellites, though they say they're not ordering anymore for at least a few years. XM-3 and the upcoming XM-4 should remain operating for 15 years.

Designed to have more than 20Kw of power (the current Boeing satellites are 18Kw), apparently this bird would be one of the most powerful commercial spacecraft ever built in terms of electric power. No word as to what model the Loral is.