WorldSpace Satellite Radio has announced it has received approval from Switzerland’s Office Federal de la Communication (OFCOM) to operate terrestrial repeaters that will work in conjunction with its existing satellite network to provide Swiss consumers with a subscription-based satellite radio service.
WorldSpace will use the 12.5 MHz of L-band spectrum (1479.5 to 1492 MHz) harmonised for satellite radio in Europe and for which WorldSpace has priority rights throughout Europe, the Middle East and Africa. The Company plans to offer a mobile service as early as 2009 on the continent, beginning with Italy; and in Bahrain and United Arab Emirates (UAE) – places where WorldSpace has already received authorization to launch its satellite/terrestrial hybrid radio service.
The Company’s European strategy is to roll out its service on a sequential country-by-country basis, beginning with Italy, where aftermarket radios are expected to be available to consumers in early 2009 and OEM (factory installed) radios in several Fiat models by late 2009. In addition to Italy and now Switzerland, the Company expects to secure four more licenses in 2008, from the other major European markets.
“We are very pleased at the efficiency with which the OFCOM has granted us this approval,” said Noah A. Samara, Chairman and CEO of WorldSpace. “As we begin planning the content line-up for our Italian launch and subsequent European markets we hope to secure shortly, including the UK, Germany, Spain and France, we hope to be able to parlay our unique variety of news, sports, music and entertainment programming into a line-up that is equally attractive to Switzerland’s diverse cultures.”
Although not large, the Swiss market is attractive for satellite radio, given the demographics that fit its early adopter profile. For example, it has a population that exceeds 7.5 million, with a per capita GDP of approximately US$39,800 – a figure that is larger than that of each of the ‘big five’ European countries targeted for service by WORLDSPACE. The three main ethnicities and official languages of Switzerland are: German (65%), French (20%) and Italian (10%). It is home to the international banking community, various United Nations departments and multiple international business conglomerations and thus home to a large expatriate population. There are approximately four million cars in the country with new car sales expected to rise to about 320,000 in 2010.