XM Canada and Telus Combine

[dellite]

This just in, XM Canada and Telus have combined for satellite radio. The agreement lets Telus expand its wireless entertainment services.

The deal comes as satellite radio companies are pushing to expand their subscriber numbers and cope with hefty start-up costs. Meanwhile, cellphone companies are working hard to find new sources of revenue as the market matures.

Cell phones provide a new platform for XM Canada and Sirius Canada, which have signed a flurry of deals with auto makers to install their receivers in several different brands of cars.

While Telus and XM Canada called the deal "exclusive," it is believed that the deal doesn't preclude XM Canada from offering a different version of its service, perhaps different channels, to another cell carrier. Mr. Tapp said XM can't comment on the exclusivity of the deal, which is protected under confidentiality agreements.