Satellite radio is beginning to make serious inroads in the radio business, gaining more and more customers and attracting more programming. Satellite radio followed in the footsteps of satellite TV. In 1992, the Federal Communications Commission (FCC) allocated a spectrum for satellite-based broadcasting. This spectrum - an 'S' band (2.3 GHz) - is used by three primary companies to broadcast Digital Audio Radio Service (DARS).

The three companies that are currently offering satellite radio are: Sirius Satellite Radio, XM Satellite Radio, and Worldspace Radio. Satellite radio works on a similar premise to satellite TV.

Satellite Radio Ground Stations collect the various radio programs and broadcast the to the satellites in geostationary orbit. In the case of XM Radio, the company owns to satellites in orbit, the satellite names are 'Rock' and 'Roll.'

The satellite broadcast the signals back to earth, directly to the customer's satellite receiver. In some cases the satellite radio company will utilize ground repeaters. The repeater's function is to receive the signal directly from the satellite and repeated (bounced) to customer's satellite receiver. Repeating stations are located on skyscrapers, cell-phone towers and tops of high hills. The repeater enhances the signal and clarifies it so users in areas with tall buildings or in hilly country will not lose their signal.

The satellite receivers are programmed to receive and decode the satellite signal. Satellite receivers can be located within the home and car, so you never have to miss your favorite radio program.

Although customers are not able to receive local programming on their satellite receiver (at least at the time of writing), they are still given a huge selection of hundreds of programming options with fantastic quality and few or no commercials. The programming options are so much greater than typical AM/FM radio stations; you'll never miss the local channels.