Sprint and Clearwire are teaming up their efforts to bring WiMax nationwide. And it's something that satellite radio, and terrestrial radio for that matter, should keep a close eye on.

The deal is huge. The two companies said today they'll collaborate on products, services, infrastructure, marketing and distribution. Both will build out their WiMax networks independently, but will enable roaming between territories. Sprint will focus on covering 185 million people in the 50 largest markets, while Clearwire will focus on 115 million people elsewhere.

Additionally, Clearwire and Sprint will exchange selected 2.5 GHz spectrum in order to optimize build-out, development and operation of the network.

It's not a short-term partnership either. The two companies are hooked up for 20 years, with three 10-year renewal terms.

Coverage of 100 million people is expected by 2008. Also, Intel plans to embed WiMax on its chips by the end of 2008.

I wonder if, in 5-years, we'll be referring to "radio" in an entirely different way?

[Press Release vs ZDNet] 

BIA Financial Network recently came out with a report showing the level of HD Radio adoption throughout terrestrial radio. And the pace at which these companies are switching over to HD is pretty surprising (at least to me).

By far the highest number of HD Radio stations on the air is Clear Channel, with some 375 stations now in HD. The runner up is CBS Radio, with 84 HD Radio stations.

In terms of percentage, almost 90% of Bonneville stations are on the air with HD Radio. Greater Media has 70% of its stations in HD, Emmis has 65%, and CBS Radio is at 60% of HD Radio.

Multicasting is where stations have sub-channels, and again Clear Channel leads the pack with 274 stations broadcast HD2 or HD3 channels.

Clear Channel (an NAB member) isn't just concentrating on the broadcast side, they're also focusing on the content side. Last year Clear Channel unveiled their Format Lab initiative. Format Lab, which employs over 200 programmers, offers HD Radio stations content that they can then rebroadcast. The content offering looks surprisingly similar to satellite radio's, with Urban, Christian, Spanish, Comedy, Country, and Gay-themed programming.

Nah, that's not competition.

[BIA Financial]

View a chart showing the adoption of HD Radio across the top 25 Radio Groups, after the jump...

mSpot, the ever-growing mobile entertainment company, announced today that they've added the Fox Sports Radio Network channel to its lineup.

Fox Sports Radio Network offers several shows hosted by nationally syndicated talent including JT "The Brick," Andrew Siciliano, Jorge Sedano, Steve Czaban, Craig Shemon and James Washington, among others.

"Teaming with mSpot allows Fox Sports Radio to bring the ind-depth and interactive coverage that our network is known for to the mobile phone platform," said Andrew Ashwood, vp and general manager of Fox Sports Radio.

Last week, mSpot announced a partnership with ABC Radio Network, and they've signed similar content deals with the likes of Clear Channel, CBS Radio, NPR, etc.

But of course, this isn't competition right? Combine this service with cellphones sporting built-in FM modulators, and you've got yourself a pocket-sized (and useful) plug-and-play radio. (For the record, the LG Muziq doesn't support mSpot Radio, as far as I can tell, but the Muziq does support Pandora Radio.)

And before I hear cries of "burgeoning" technologies, remember, mSpot already has 1 million subscribers. Competition indeed.

[MediaWeek]

The LG Muziq, available next month from Sprint, will be able to download music wirelessly and transmit it directly to your FM radio. Mobile Audio in your car just got easier.

Available for a mere $99, with 2-year Sprint contract and rebate, the 3-ounce Muziq comes with a MicroSD card slot, allowing for fully scalable memory expansion (MicroSD cards max out at 2Gb right now).

As a music player, the battery will run for up to 10 hours, or about 4 hours in talk time.

You'll be able to sideload your digital music to the LG Muziq, or download music from Sprint's Music Store. And with a built-in FM transmitter, you'll be able to listen to it anywhere.

So what happens to the mobile audio landscape when Sprint rolls out its WiMAX service later this year?

[New York Times]

Ah remember the days when research firms were forecasting 30+ million satellite radio subscribers by 2010? It actually wasn't that long ago, but now it seems unlikely that number will be reached - let alone XM's own 20 million in 2010 long-term goal (have they ever adjusted that? I don't believe so... at least not publicly).

Well, the tide is turning, because the 800-pound gorilla is WiMAX, and her time is rapidly approaching. Yankee Group is forecasting 28 million WiMAX subscribers by 2011. Research firm In-Stat says WiMAX infrastructure equipment and devices will become a $5 billion market within four years, up from only $177 million today.

Maybe that's why so many of you investors are watching Clearwire so closely.

And If you think this statement is resonating a lot today: "Why should I get satellite radio when I already have an iPod?"

Then imagine what that statement will be in 4 years. Sprint is set to roll out its WiMAX service later this year, and Clearwire boasts 250,000+ subscribers already. The future is coming fast, and with FCC chairman Kevin Martin calling for "openness" for the upcoming auction of the 700 MHz band, it's only going to come faster.

It's time to step up SatRad. Now isn't the time for "slow and steady wins the race" strategies. The landscape is changing way too fast for that approach. Times are 'a changing, and if the industry doesn't evolve to keep up, people will just... unsubscribe.

[Business 2.0 via Hear 2.0]

mSpot, the mobile music/radio/video entertainment service, has signed a partnership agreement with ABC Radio Networks to add another 14 new channels to its mSpot Radio lineup.

Thanks to the deal, 14 ABC Radio stations in the nation’s largest markets in New York, Washington, D.C., Atlanta, Dallas, Los Angeles, Minneapolis, Chicago, and Detroit, will be available to mSpot's one million subscribers in both the U.S. and Canada. mSpot provides its services in the U.S. for Sprint and U.S. Cellular, and in Canada for TELUS and Bell Mobility.

mSpot inked a similar deal with Clear Channel back in March.

"By offering our content on mSpot, we are rapidly expanding both the range and reach of our customer base," said John Rosso, senior vp, affiliate relations and digital media for ABC Radio Networks (a subsidiary of Citadel).

Launched about two years ago, mSpot Radio offers 200 channels - including more than 100 live radio stations. On top of ABC Radio Networks, mSpot has signed content deals with several radio corporations including Clear Channel, CBS Radio, National Public Radio, Radio Disney, FOX Sports and Marketwatch.

Content providers get a share of revenue on a per-subscriber basis and will eventually share in the revenue from inserted audio ads.

[MediaWeek] 

Slacker, the growing internet radio-turn-satellite service, has filed a comment with the FCC asking for specific conditions regarding Sirius and XM's partnerships with auto manufacturers, should the merger be approved.

As Slacker is a new personal audio service, they're asking the FCC to impose two conditions should the merger be approved:

1. The combined company should not be allowed to continue, or enter into any exclusive agreement with auto manufacturers. In other words, they need to terminate any exclusive agreements they already have.
   
2. The combined Sirius-XM should not be permitted to have car manufacturers represented on the new company's Board.
   

Remember that when Sirius and XM announced the merger, they stated that the board of directors would consist of one representative from each of General Motors and American Honda.

Slacker was careful to explicitly state that they take no position regarding the proposed merger, and that they don't consider themselves to be a substitutable service to Sirius or XM.

In their comment to the FCC, Slacker went into great lengths to highlight the tightly knit relationships between both satellite radio providers, auto manufacturers and their OEM agreements.

Slacker is asking a lot here, and has definitely thrown the glove down... though you honestly can't blame them. If the FCC gives these requests serious consideration, it very well could delay the entire process. Because, since it's been the basis of their business model for years, you can bet that Sirius/XM would vehemently oppose any restrictions on their OEM agreements.

My only problem is that the "exclusive" logic really only applied to each other, not competing audio technologies. If the auto manufacturers were truly married to the exclusive concept, then there wouldn't be any iPod integration, or HD Radio installations, as we're seeing today.

[Slacker's FCC Comment (PDF)]

Apple sold about a half million iPhones the first weekend the device went on sale, according to analyst estimates.

Piper Jaffray analyst Gene Munster released a report Sunday estimating that Apple sold about 500,000 units through the close of business Sunday. Munster originally thought Apple would sell 200,000 on Friday and Saturday.

Ninety-five percent of iPhone buyers in San Francisco, New York and Minneapolis purchased the 8GB model, according to the survey. About half of the people surveyed for the report were new customers for AT&T. Considering that it's estimated that Apple pulls in anywhere from a 20% to 50% profit margin for the iPhone, that's not a bad opening weekend.

Now, what can Sirius and XM learn about this?

[CRAVE]