Though Silver Spring-based WorldSpace Inc. has met several key milestones over the past year, it still needs capital to successfully launch a satellite-based radio service in Europe in 2009.
WorldSpace will be spending the next several years aggressively trying to raise money, Senior Vice President of Corporate Affairs Judith Pryor said Tuesday. The company will need funds for the structural build-out of its network as well as distribution, marketing and product development efforts. She would not disclose how much the company seeks to raise.
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WorldSpace is targeting Italy as its first country for radio service from the new network and has already secured government permission to operate there.
WorldSpace currently operates two satellites that broadcast in Africa and Asia.
Over the past year or so, WorldSpace has also received approval to operate a network in Switzerland and Germany though it has not received permission to do so in the United Kingdom.
The firmhas lined up a company to build its receivers, and Tuesday announced that STMicroelectronics would construct the chips that will operate the receivers.
In July, it signed up its first automobile manufacturer, Fiat, to install the radios in its vehicles. American satellite-radio providers XM and Sirius derive most of their profits from cars that have radios factory installed.
“Fiat was a really good move forward for the Italian business,” Pryor said. “It was good to be able to announce a solid manufacturer.”
WorldSpace also plans to offer service in the Middle East in 2009, shortly after the Italian service begins in the first half of that year. The company can use one of its existing satellites to broadcast in those areas rather than having to launch a new spacecraft, Pryor said.
Analyst Claude Rousseau from Northern Sky Research said it will be key for WorldSpace to get into Europe as quickly as possible because another company, Ondas, is eyeing the opprtunity as well.
Rousseau said he sees a potential market for WorldSpace in commercial truckers and other business travelers who use their cars, but said that there is a lot of competition in Europe from high-quality FM radio.
“The [automotive] deals are going to be very key,” he said. “In a way, having Fiat on board gave people confidence that they’re serious.”
