Worldspace failure won't affect Ondas

Ondas Media plans to use Spanish-allocated frequencies to launch a pan-European pay-radio system, similar to that provided in the USA by Sirius-XM. However, there have been anxieties that Worldspace's recent financial collapse would affect Ondas' prospects over Europe.

'Not so,' implies Dave Kruger, Ondas Media's CEO. "Relative to Worldspace, I don't think that many people are surprised by their bankruptcy filing. We believe that there are four fundamental building blocks required for a successful satellite radio service in Europe."

"Those four ingredients are: 1) compelling content that people are willing to pay for, 2) savvy customers (car makers) who understand the business and to whom we can offer affordable radios installed and activated at the factory, 3) a meaningful pan-European regulatory strategy that supports radio receivers integrated into the car with minimal risk, and 4) a viable transmission infrastructure that provides the high quality of service with a diverse content portfolio."

Kruger says these elements have been the focus for the business this past year. "This has led to successful cooperation with car companies, radio manufacturers, media partners, and network operators including satellite operators."

Just over a week ago Ondas signed BMW up for its system with BMW vehicles installing receivers from 2012. "I think the differences between our story and that of Worldspace are very obvious to those customers and partners. Worldspace's bankruptcy hasn't changed any of those fundamental differences. Using the four-part strategy outlined above, one would conclude that even at heavily discounted prices, the perceived assets of Worldspace have limited value to a satellite radio service here in Europe," added Kruger. "We will keep tabs on things there, but not at the cost of distracting ourselves from executing our core business plan," said Kruger.