U.S.-Mexico deal paves way for satellite radio

The agreement, negotiated by the State Department and the Federal Communications Commission, covers use of the 2310-2360 MHz, or S, band as well as wireless communications services. A similar deal was concluded with Canada earlier.

U.S. officials said the agreement with the Mexican government, which took two years to negotiate, is a significant step toward establishing the stability of DARS, wireless and other terrestrial systems operating near the U.S.-Mexican border.

"The agreement provides the U.S. with the ability to offer U.S. consumers high-quality audio services directly from the satellite while safeguarding the operation of existing and future terrestrial services authorized in the S-band,"said FCC chairman William Kennard.

The deal was signed by Malcolm Lee, U.S. coordinator of the State Department's International Communications and Information Policy office, and Ari Fitzgerald, deputy chief of the FCC's International Bureau. Jorge Silberstein Tenenbaum, undersecretary of communications of the Mexican Secretariat of Communications and Transportation, and Jorge Nicolin Fischer, chairman of the Federal Telecommunications Commission, signed for Mexico.

The agreement was completed as two satellite-based digital radio developers gear up to launch services next year. XM Satellite Radio Inc. recently announced additional investments totaling $235 million. Its chief rival, Sirius Satellite Radio, launched the first of three satellites June 30. The company's other two satellites are scheduled to be in orbit by November.

The FCC has Sirius and XM to provide satellite-based nationwide radio service on a subscription basis.

Satellite DARS is touted as a way to increase the variety of programming available to listeners and offer niche programming to those with special interests. The service may also possess the technological potential to provide a range of audio programming options to areas of the country that have historically been underserved by terrestrial radio.

Both governments said the spectrum deal also removes administrative barriers that have slowed implementation of DARS and wireless services during the talks. "Thus, the development of both the satellite and terrestrial services can now proceed in a timely and efficient manner," they added in a joint statement.