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XM Satellite to Launch Radio Service Sept. 12

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Bloomberg News

XM Satellite Radio Holdings Inc. will start a $100-million advertising campaign Aug. 10 and begin selling 100 channels of music and talk in selected markets Sept. 12.

XM Satellite will start sales in San Diego, Dallas and Fort Worth. Service will be expanded in mid-October to other cities in the Southwest. The Washington-based company said it will expand sales to the rest of the U.S. by early November.

The company plans to air programming from two satellites to U.S. motorists for $9.95 a month. It expects to sign up 100,000 customers this year by offering more choices, fewer commercials, greater range and better sound quality than AM or FM radio.

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XM’s sole rival, New York-based Sirius Satellite Radio Inc., has said it will charge $12.95 a month and start service in the fourth quarter. Sirius won’t have commercials on its music channels. It will have ads on news channels.

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