Fiat and Worldspace Sign First Ever Distribution Agreement for Satellite Radio in Europe
SILVER SPRING, MD, July 19, 2007 - Satnews Daily - Fiat Group Automobiles S.p.A. and satellite radio broadcaster Worldspace, Inc. and its subsidiary Worldspace Italia have signed a marketing agreement under which Fiat will become the first automobile manufacturer to install and distribute in Italy Worldspace satellite radios, while Worldspace will offer digital quality satellite radio services.
Worldspace expects to begin broadcasting 40-50 channels of commercial-free music, news, entertainment and sports programming, 24 hours a day throughout Italy by late 2008. Worldspace plans to use MPEG-4 aacPLUS v.2 format.
Worldspace's programming will include a channel exclusively dedicated to Fiat, its dealers and customers. For the first time ever, an automobile manufacturer will have a radio channel through which it will offer both promotional and customer-assistance services.
Beginning in late 2009, Fiat will introduce Worldspace satellite radios as factory-installed (OEM) optional equipment on certain of its Fiat, Alfa Romeo and Lancia models. In addition, Fiat will be able to offer Worldspace portable satellite radio receivers to its customers through its aftermarket channel.
"Our customers have come to expect from us increasingly innovative and versatile technology in all fields including entertainment services," said Giuseppe Bonollo, Fiat's senior vice president, product portfolio management. "The introduction of satellite radio is yet another proof point that emphasizes our commitment to providing advanced features that will improve the quality in driving and life on the car."
"With the signing of this agreement with Fiat for the Italian market, all of the significant pieces are now in place for Worldspace's European roll-out," said Alexander Brown, Worldspace co-chief operating officer. "Over the past year, we have secured the Italian Ministry of Communications' authorization to launch our subscription satellite radio service in Italy; finalized the development of repeater technology that is fully compliant with European Union technical requirements; engaged Telecom Italia to design our terrestrial network and begin installation of the repeaters; and now, contracted with one of the largest vehicle manufacturers and distributors in the world for the installation and sale of Worldspace satellite radios to their Italian customers."
"Thanks to this agreement, the radio of the future, which has taken America by storm, will arrive on European shores," said Luca Panerai, Chief Executive Officer, Worldspace Italia. "We expect to deliver up to fifty new commercial free channels including music, sports, news and entertainment, with digital quality and clear reception. It is no coincidence that Italy's leading automobile manufacturer decided to install our receivers on many of its models. This is an achievement of which we are extremely proud."
In May 2006, Worldspace Italia received approval from the Italian Ministry of Communications to launch a subscription-based satellite radio service in Italy, utilizing 12.5 MHz of the L-band frequency spectrum, the only frequency band harmonized for satellite radio over Europe. In January 2007, Worldspace signed an agreement with Telecom Italia to design and deploy a terrestrial repeater network throughout Italy. This past spring, Worldspace signed a contract with Fraunhofer Institute for Integrated Circuits, part of Fraunhofer Gesellschaft, to develop a receiver reference design (or engineering blueprint) for the European market which is already in development and undergoing testing.
Worldspace's European strategy is to roll out its service on a sequential, country-by-country basis. In addition to Italy, the Company's target markets include France, Germany, Spain, the UK, Turkey and Poland.
Fiat Group Automobiles produces and sells vehicles under the Fiat, Alfa Romeo and Lancia brands and light commercial vehicles under the Fiat Professional brand.
