There are two parts to the cost of satellite radio - startup costs and monthly recurring charges. The startup costs include the cost of your receiver and associated hardware and the cost of activation. There are several types of receivers available including home, car, portable, and computer. The home, car, and computer receivers are dedicated units that can only be used for those purposes. These units tend to be either fixed in their installation such as the car units or have power and connectivity requirements that are not portable such as the home decks and computer dedicated receivers. Activation is the amount that both XM Satellite Radio and Sirius Satellite Radio charge to initiate service. Both services offer activation by phone and on the Internet. Internet activation is $5.00 with Sirius and $9.99 with XM. Telephone activation is $15.00 with Sirius and $14.99 with XM. Monthly subscription costs will be discussed at the end of this entry.

Also, please remember that the costs provided below for equipment and installation is estimated. There are receivers and packages that are both more and less expensive. These price examples are to give you a ballpark idea of the costs involved with satellite radio.

Typical Costs for a Dedicated Car Installation

This option allows for two possible installations. First, you may consider purchasing a new satellite-ready car stereo or perhaps you already have one. Many car manufacturers include satellite-ready radios but they rarely include the actual satellite radio receiver. This component and the need for an antenna will cost money. If you already have one, subtract the cost of the radio. This configuration allows you to tune satellite radio using the same car stereo you use to listen to CDs and FM radio. A very nice option.

The second installation type is using an existing car stereo that does not support satellite radio. There are two ways to connect your satellite receiver to your existing non-satellite radio car stereo. First, you can utilize your radios auxiliary inputs (typically CD.) Many radios offer such inputs. If you decide to go this route you need to understand that you will still need to install a control unit that will allow you to tune to the satellite radio streams. Second, you can install a satellite radio receiver that transmits the satellite radio signal on a local unused FM frequency.

Using these installation types, the satellite receiver is typically installed under a seat or in the trunk and then connected to the satellite radio antenna mounted on your car?s exterior. The receiver then connects to your radio using auxiliary or dedicated satellite inputs or FM transmission. Another cost is the labor involved with the installation of your car system. Unless you are experienced with such things, let the pros do it.

Receiver $100.00
Radio $200.00
Antenna $60.00
Labor $80.00
Activation $10
———————
Total $450.00

Typical Costs for a Dedicated Home Installation

This option assumes you have chosen to install a dedicated stereo receiver unit. This unit is similar to common audio components such as AM/FM receivers. It will then connect to your system as an auxiliary input. You will require an antenna to receive the streams.

Receiver $300.00
Antenna $60.00
Activation $10
—————-
Total $370.00

Typical Costs for a Portable Unit

The portable units offer the most flexibility for the least money. If you want to move your unit from room-to-room you simply purchase additional home kits. Home kits include all the components you will need for additional installations such as antennas, output cables, and power supplies. Using home kits, your satellite radio receiver can be connected to your home stereo, computer, and boomboxes. The portable units also offer car kits and the ability to use dedicated boomboxes for the ultimate in satellite radio portability. See you at the beach!

Portable Home Installation: Home Kits x 2 plus Boombox Option

Receiver $120.00
Home Kit $140.00
Boombox $100.00
Activation $10
—————-
Total $370.00

Portable Home Installation

Receiver $120.00
Home Kit $70.00
Activation $10
—————-
Total $190.00

Portable Home & Car Installation w/o FM Modulator

Receiver $120.00
Car Kit $70.00
Home Kit $70.00
Activation $10
—————-
Total $270.00

You can often find combination deals for around $200, and then add activation cost.

Portable Home & Car Installation with FM Modulator

Receiver $120.00
Car Kit $70.00
FM Mod. $50.00
Home Kit $70.00
Activation $10
—————-
Total $320.00

You can often find combination deals for around $240, and then add activation cost.

The second cost associated with satellite radio is the recurring monthly charge for service. This cost varies based on your contractual commitment and the number of receivers you have.

XM Satellite Radio Subscription Costs

XM Satellite Radio?s monthly service charge is $9.99. If you agree to a commitment ranging from two to five years and prepay you can lower your effective monthly charge to as low as $7.48. You can also add as many as four additional receivers for $6.99 each, per month. XM will refund you a prorated amount should you decide to cancel your subscription. Playboy Radio, a premium service, is an additional $2.99 per month. Business subscriptions are $24.99 per month. The increased cost of a business subscription is rationalized using the fact that multiple, possibly dozens, of people will hear the songs played. XM pays additional royalties to the music industry when business subscriptions are billed.

Sirius Satellite Radio Subscription Costs

Sirius Satellite Radio?s monthly service charge is $12.95. Sirius offers lower effective monthly rates if you commit to a one or two year subscription with prepayment. Sirius is currently offering a pretty good deal on a lifetime subscription that is radio-attached. For $499.99, your radio is live for life! With Sirius you can activate as many as three additional radios for $6.99 each per month. Business subscriptions are $24.99 per month. Again, the increased cost of a business subscription is rationalized using the fact that multiple, possibly dozens, of people will hear the songs played.

What is the Best Choice?

The best choice for you will vary but he portable units are the way to go for home use if you want to keep startup expenses to a minimum. They are portable and can be moved from room-to-room with very little hassle. You will need additional home cradles to move from room-to-room but these are reasonably priced. Plus, many people also buy a car kit and use their portables in their car. This is a great solution as long as you buy a car kit that can use your existing car radios auxiliary input or if you buy a car kit that has a FM modulator allowing you to broadcast the satellite radio signals on an unused FM station on your car stereo. Units that use tape input, essentially a cassette tape with a wire attached, are ungainly and a big hassle in my opinion. This is my personal opinion and to be fair many people use the tape input method and don’t consider it a big deal. Dedicated car receivers will provide a much cleaner installation especially if attached to a satellite-ready radio. If your car stereo is not satellite radio-ready, you will need an additional display to be able to tune satellite radio stations and this can result in a less than optimal installation. You always have the option of purchasing a satellite radio-ready car stereo for the cleanest installation.

The portable units are not meant to be installed in stereo spaces in cars because they are much smaller than traditional car stereos. So, you will need to mount a portable receiver in an area not traditionally used for after-market equipment such as the dash or perhaps on your console if you have a roomy console. The solution I have settled on is a portable unit for the house and several home kits so that I can use my receiver in several rooms. I also had a car receiver installed in my car and attached it to my satellite-ready car stereo. This provides me with maximum listening pleasure in many locations, a very clean car installation, and I only have to pay for two radio subscriptions each month.

This is the final installment in a series where I look at the current state of satellite radio technology, satellite radio services, and satellite radio hardware.