First Satellite Radio Prototype Shows Future Of In-Vehicle Entertainment And Telematics

You're cruising the highway, listening to the final minutes of a close ballgame. Suddenly, you lose the radio signal. But not if you're a Ford customer in the not-too-distant future - digital satellite radio is coming soon to give you coast-to-coast, uninterrupted music, news and information.

Ford Motor Company unveiled a Ford Expedition equipped with the first satellite radio demonstration model at the Experimental Aircraft Association's AirVenture air show in Oshkosh, Wisconsin. This follows Ford's recent announcement of its alliance with CD Radio, an FCC-licensed satellite radio provider, to deliver a satellite-to-vehicle subscription radio service beginning at the end of 2000.

The prototype radio, developed by Ford components supplier Visteon Automotive Systems, simulates the service that will bring as many as 100 channels of digital-quality programming to customers. This revolutionary in-vehicle entertainment service includes 50 channels of commercial-free music and up to 50 channels of news, sports and entertainment programming delivered seamlessly across the continental United States.

Ford Motor Company is expected to have the first cars and trucks in the nation with factory-installed satellite radio receivers. The exclusive agreement includes all seven Ford Motor Company brands - Ford, Lincoln, Mercury, Mazda, Jaguar, Aston Martin and Volvo.

"CD Radio has a unique system which will offer our customers customized, commercial-free listening choices across the country at any time. This partnership is all about Ford Motor Company being the leader in bringing new value and services to our customers," says Neil Ressler, Ford's vice president of Research and Vehicle Technology and chief technical officer. "It's another step in our goal to become the world's leading consumer company that provides automotive products and services."

Ford intends to begin installing CD Radio receivers starting as early as first quarter 2001. Under terms of the agreement, Ford also will have access to individually addressed bandwidth and will work with CD Radio to develop specialized programming and innovative telematic/infotronic functions exclusively for Ford customers.

"CD Radio service will bring to radio what cable networks have brought to television, and we will deliver it to our customers first," said Mike Ledford, executive director, Telematics, at Ford Motor Company.

"We're extremely pleased that the world's most respected automaker has chosen CD Radio as its satellite radio partner," said David Margolese, CD Radio chairman and chief executive. "Our objective is to have every car already on the road and every car coming off an assembly line capable of receiving the CD Radio signal. Ford's decision is a significant step toward achieving that goal.

"With this agreement, Ford and CD Radio usher in a new era of commercial-free music and innovative news, talk and entertainment radio programming for motorists across the U.S."

Mike Maloney, Multimedia Systems Director at Visteon, predicts tremendous advantages for both OEMs and consumers. "This technology will provide more specialized programming and the possibility for E-Commerce in conjunction with other telematics features," Maloney said. "We're really excited to be the source of this enabling technology for Ford Motor Company, and as the largest manufacturer of OEM radios, we're poised and ready to move together with Ford and CD Radio in this exciting new field of subscription radio."

CD Radio is building a digital satellite radio system that will broadcast up to 100 channels of music and other programming to motorists throughout the United States. The company will offer 50 channels of commercial-free music and up to 50 channels of news, sports and entertainment programming for a monthly subscription fee of $9.95. Commercial operations are scheduled to commence at the end of the fourth quarter of 2000.

The first of CD Radio's three satellites, under construction by Space Systems/Loral, is scheduled for launch in January.