Shares of Sirius XM
Radio Inc(NASDAQ:SIRI) ended higher by 3.70% to $2.94 and made multi-year high
of $2.97. Volume was heavy with more than 174 million shares traded hands,
compared to its average volume of 71.58 million shares.
Recently, US regulators
approved the proposal from AT&T Inc.(NYSE:T) and Sirius XM Radio that would
allow the mobile phone provider more wireless data while securing satellite
radio subscribers from interference.
The rules were approved
by the Federal Communications Commission on a 5-0 vote. They would affect
airwaves called the Wireless Communications Service and frequencies nearby used
by Sirius to reach 23.4 million subscribers.
Will
SIRI Hit $5 This Year? Find Out Here
At&T has proposed
to purchase Wireless Communications Service from Comcast Corp, Horizon Wi-Com
LLC and Nextwave Wireless Inc, as per to an FCC notice that seek comments on
the acquisitions.
AT&T’s vice
president, who is responsible for dealing with federal regulators, Joan Marsh
that the company based in Dallas could start installing equipment for the
spectrum band in a matter of three years.
Restrictions that are
meant to protect Sirius have kept mobile service providers from making
intensive used of the Wireless Communications band, Sirius and AT&T had
said this in a filing that took place on 15th June. The filing
offered a ‘compromise’. Sirius has
operated with insecurity as to whether the FCC would change the regulations in
ways that would allow meddling with satellite signals.
The FCC is trying to
free more airwaves for use by high-speed wireless gadgets like iPhones. It had
auctioned off the WCS spectrum back in 1997. However, it has never been put
into any meaningful use owing to the risks for interference.
Shares of Sirius XM
radio Inc have been faring well since last three months. Analysts are expecting
that the satellite radio giant’s profit will continue to grow in the upcoming
year. An analyst of Bank of America, Jessica Reif Cohen has added Sirius XM to
the chart of top stocks of the bank. She has cited publicity of Sirius XM to a
recovering market for new and used vehicles and in addition, the expectations
go beyond $3 billion in stock buybacks for the upcoming year.
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