SiriusXM Eyes Spectrum Payday As Satellite Network Modernizes.

SiriusXM says efforts to unlock additional value from its satellite spectrum are gaining momentum, with executives pointing to a newly launched satellite, increased industry interest and a more favorable regulatory environment as they explore ways to monetize an asset historically devoted to the company’s radio service.

CEO Jennifer Witz said the company continues to evaluate potential partnerships involving its 35 MHz of spectrum. While it offers potential new revenue sources, Witz stressed that any agreement would need to protect SiriusXM’s core satellite radio business.

“We continue to explore opportunities to monetize our valuable spectrum assets while preserving the quality and reliability of our core satellite radio service,” Witz told analysts during the company’s Q2 earnings call.

The latest step came with SXM-11, SiriusXM’s most powerful satellite, completing in-orbit testing and entering operational service following its June launch. The satellite will improve signal reception, expand coverage in Alaska and strengthen service across North America as part of a fleet refresh scheduled to be completed next year.

The newer satellites could also give SiriusXM more flexibility in how it uses its spectrum without compromising its radio service. That opportunity is attracting more attention as demand grows for spectrum supporting direct-to-device and other wireless services. SiriusXM has been talking with potential partners, although Witz said the company is in no hurry to strike a deal.

“We’ve been having conversations with a number of parties, and those conversations continue,” she said. Witz also said SiriusXM is “encouraged” by recent developments across the satellite industry and at the Federal Communications Commission that could increase the value of its spectrum holdings.

The company’s 25 MHz of satellite radio spectrum remains a core asset serving roughly 35 million subscribers in the U.S. and Canada. But within that 25 MHz is a longer-term opportunity created by the technological legacy of the Sirius-XM merger. SiriusXM continues to use spectrum associated with both the original systems. But as older Sirius-equipped vehicles leave the road and customers migrate to newer cars using newer XM technology, Witz said a portion of that spectrum could eventually be put to another use.

“Over time, as they move off of Sirius, we could do something different with that band,” Witz said. Any change would face technical and regulatory requirements, but she said the goal is “to find the highest value use.”

Wall Street has been following the issue closely as investors see a potentially sizable windfall from the spectrum. Management, however, offered no timetable for a transaction.

“We’re not focused on speed. We’re focused on value,” Witz said at a Goldman Sachs conference this month. She said the company is considering a range of possibilities — including a sale, lease, joint venture or other commercialization arrangements.

The spectrum discussion comes as SiriusXM nears the end of a major satellite fleet refresh designed to ensure the long-term reliability of its core subscription service. SXM-11 is replacing XM-5 and joins SXM-9 and SXM-10, which entered service in 2025. SXM-12 is scheduled to launch in 2027, completing the current fleet-refresh program.

SiriusXM says SXM-11 orbits roughly 22,000 miles above Earth and carries a 30-foot main antenna, giving it an estimated eight-million-square-mile broadcast footprint. The satellite also carries an additional communications payload that SiriusXM says will provide expanded WCS-band coverage.

“For listeners, that means a premium in-car experience with broad, reliable coverage, including where cellular service may be limited,” Chief Product and Technology Officer Sean Gibbons said.

Finishing the satellite replacement cycle will produce a financial payoff. Witz said SiriusXM expects to complete the fleet next year, after which satellite capital spending should fall to “close to zero” beginning in 2028 and remain there for years.