Sirius XM Radio Inc., (NASDAQ:SIRI) Tie Up With AT&T (NYSE:T) To Provide Telematics In New Nissan Cars

Denver, CO, 07/22/2013 (Avauncer.com) – Shares of Sirius XM Radio Inc., (NASDAQ:SIRI) plummeted 1.31% to close at $3.64 in its last trading session. This remained at the higher end of its 52-week price range of $2.03 to $3.77. Despite this, shares remained moderately traded with 56.82 million shares exchanging hands, as against an average volume of 64.48 million shares.

The company has recently announced of its tie up with AT&T (NYSE:T) to provide connectivity solutions of its telematics in NISSAN cars. This is in pursuit of company’s aim to go beyond than just offering premium audio in automobiles, the market which has greater dept. The partnership has been charging customers as per their wimps and fancies for providing emergency support, roadside assistance, vehicle tracking and other infotainment packages. Sirius XM cannot power the connections on its own, thereby choosing AT&T.

However, investors are more interested in knowing whether pushing users to connected cars would benefit Sirius XM in the long run.  The company has witnessed increase of buyers that would like connected cars, more than drivers that don’t have smartphone interactions with their automobiles. However, the market is plagued by the belief that the more connected drivers get, the higher the chances of losing them.

Sirius XM aims to combine satellite and cellular network, something which currently has no competition. However, it should keep an eye on the motives of AT&T, who is expecting more from the partnership.

Sirius XM has earlier thrived in the technology of Bluetooth connected smartphones owners, reporting 715k new subscribers in last quarter. However, the market is very dynamic. I ts market may face a hit if any free or near free solutions enter the market ,as an alternative to OnStar and Sirius XM’s new offerings.