XM Satellite Radio may potentially be getting access to more spectrum from cell-tower operator Crown Castle.

You might recall XM's failed attempt at acquiring WCS Wireless last year. XM had planned to buy WCS Wireless and its adjacent 2.3GHz band, under the assumption they would offer multimedia subscription services, including video and data. WCS pulled out of the deal and was later acquired by NextWave.

Now two XM investors - Telcom Ventures and Columbia Capital - have formed a venture to lease the 1.67-1.675 GHz spectrum in the top 300 markets from Crown Castle. The two companies had previously been investors in WCS Wireless, while Crown Castle once planned for a nationwide mobile-TV service for their spectrum (aka Modeo).

The leasing deal by the two XM investors gives XM another possible means of obtaining the additional spectrum, according to TWICE. That is... only if Telcom Ventures and Columbia Capital have no plans to pursue Crown Castle's mobile-TV initiative.

As part of the lease arrangement, Crown Castle will be the provider of the infrastructure for future tower sites needed by Capital and Telecomm. The $13 million annual lease (Crown Castle has about $10m in annual network costs) runs from July 23, 2007 until October 1, 2013, after which lessee gets the right to acquire the spectrum for $130 million, plus inflation, or renew the lease for up to 10 years at $14.3 million per year.

Interesting.

[TWICE]