The agreement between WorldSpace and ST is expected to lead to a channel decoder IC for ESDR receivers. Based on a European Telecommunications Standards Institute (ETSI) standard, the ESDR technology enables WorldSpace to employ a hybrid satellite-terrestrial network, where its satellites deliver broad geographical coverage at low cost, while terrestrial transmitters improve reception quality in urban and suburban areas.

WorldSpace Satellite Radio's offering is set to include between 40 and 50 channels of commercial-free music, news, sports, talk and other personalized programming such as traffic, navigation and music downloads directly from the satellite, to each of its markets in Europe. WorldSpace intends to launch its European service, beginning with Italy, in 2009, followed shortly thereafter by other major European and Middle East countries including Germany, Switzerland, Bahrain and the United Arab Emirates.

The ST channel decoder is being designed to provide reception in "harsh" conditions and to make maximum use of the available frequency spectrum.

ST has agreed to provide three additional chips for WorldSpace digital radio receivers: a super-heterodyne RF tuner, a non-volatile secure data memory and the automotive version of ST's Nomadik application processor. This automotive-grade chipset will handle the complete RF and baseband tasks, meeting the car industry's requirements for integration into OEM systems as well as after-market radio receivers.

ESDR satellite radio receivers are due to become available in the first half of 2009. Fiat Group Automobiles has signed a distribution agreement with WorldSpace for both aftermarket and OEM receivers for certain of its Fiat, Alfa Romeo and Lancia models starting next year.

"WorldSpace and STMicroelectronics have a long-standing relationship and we are very pleased to continue that relationship through this agreement," said Noah Samara, chairman and chief executive officer of WorldSpace, in a statement issued by STMicroelectronics. "This agreement is another milestone on the path to providing a truly unique satellite radio experience throughout Europe, beginning with Italy. STMicroelectronics brings a long history of excellence in satellite radio endeavors to the table and their experience with the automotive qualification process and chip production should help propel our success in Europe, the Middle East and potentially other markets when we are ready to roll out."

"Our contribution to Worldspace's efforts in Europe draws on the success of satellite digital radio in the U.S., where the majority of receivers is powered by ST chips," said Domenico Rossi, vice president of ST's Automotive Product Group, in the same statement.

"In 2007, STMicroelectronics maintained their position as number one supplier of infotainment silicon with just over 11 percent market share worldwide," said Richard Robinson at iSuppli, a market research firm, in the same statement. Robinson went on to say that ST has a 76 percent market share for satellite radio chips.

The U.S. market has approximately 18 million subscribers to satellite radio, ST said.

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