Licenses Awarded for New Radio Service
(Associated Press)
Two companies, bidding more than $173 million, won licenses to provide a new CD-quality radio service that can be heard anywhere in the country. The service, similar to cable TV, is likely to be offered on a pay-to-listen basis. It remains several years away, however. Washington-based CD Radio Inc. pledged $83.3 million for one license and American Mobile Radio Corp. of Reston, Va., put up $89.9 million for another in the Federal Communications Commission auction. CD Radio shares rose $5.22 to close at $12.59; shares of American Mobile Satellite Corp., parent of American Mobile Radio, rose 31 cents to close at $11.125. Both trade on Nasdaq.