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.
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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.