© 2010 Rapid TV News
Chris Forrester ©RapidTVNews | 06-12-2009
Radio technology company Delphi has signed an exclusive sat-radio agreement with Ondas Media. The deal in effect scuppers any plan that Sirius-XM, Liberty Media and Worldspace might have had for a Europe-wide pay-radio service based on cars with factory-installed radios.
The formal statement says "Delphi Corporation has signed an Exclusivity Agreement with Ondas Media confirming that they will only manufacture and sell Ondas satellite radio receivers in Europe."
Previously, Delphi was committed to developing the Ondas satellite radio reference design, but were also providing production radios to Worldspace for Italy's Fiat vehicles. Despite Worldspace's Chapter 11 bankruptcy the Fiat/Worldspace agreement remains in force (although is the subject of separate legal squabbles) although now not with a Delphi supply package included.
"This new arrangement ensures that Delphi, the leading satellite radio supplier to car companies in the US, will only supply Ondas radios in the European market. Delphi will still supply the reference technology of Ondas reception systems to all Ondas OEM radio manufacturers as per the original agreement," the statement continues.
Delphi's now exclusive focus on Ondas is a significant indicator of the credibility Ondas are establishing based on their achievements with OEM customers, radio broadcasters, regulators, and infrastructure partners.
"Delphi was and still is the ‘first-to-market' leader in all types of satellite reception systems, and have integrated their radios into 200 different models of automobiles for both Sirius and XM technologies. This commitment gives Ondas a significant operational advantage over competitors."
What this deal means is that Worldspace (either as a revived company, or with Liberty and/or Sirius-XM as active participants) cannot use Delphi-supplied or patented components in Europe. There are certain other suppliers of satellite radios (notably Kenwood). Another company, New Jersey-based ‘Consumer Satellite Radio LLC' (CSL) filed certain patent infringement claims earlier this year against Sirius, XM, and US retailers such as Radio Shack alleging that CSL's patents within the technology had been used without permission.*
However, as far as the Delphi/Ondas contract is concerned, this is a major step forward for Ondas. Building a car is itself a hugely complex process, and the supply of radio units into upscale and mass-market vehicles is a major undertaking especially when one considers the ‘behind the fascia trim' options available to buyers. The Delphi agreement means it will be even more challenging for Worldspace (or its associates) to now get factory-installed sat-radios into European vehicles. It isn't impossible, of course, and listeners might be happy to have a separate Worldspace receiver bolted onto a dashboard somewhere. But it won't be pretty!
*[view a CSL sat-radio filing here
© Rapid TV News 2009
