XM Satellite Radio and Raytheon Propose Sky-Based Plane Navigation

Potential merger candidates XM and Sirius appear to be coming to the realization that for streaming music to homes and offices, internet pipes make more sense than satellites. And eventually, when the internet's available in cars, they'll lose the only advantage they currently have over webcasters (aside from their percentage-based royalty rate).

What will happen to all of those extra satellites if the companies merge, and/or when cheap broadband becomes accessible from highways?

The Boston Globe reported on one possibility today -- that XM will team with Raytheon to offer satellite-based navigation systems for US-based planes. Apparently, such a system would offer key advantages over today's ground-based radar:

"With ground-based radars turning once every 4.7 seconds inmany cases, their signals degrade over distances. Satellite signals, bycontrast, are updated every second. They are beamed directly to planesand transmitted via ground antennas to control towers.

The new technology could reduce delays and alleviate congestion byallowing more jets to fit into the same amount of airspace. There's alot of money to be made (Lockheed Martin and ITT Corp. are also biddingfor the FAA's contract):

"Overall, the FAA estimates it will spend $15 billion to $22 billion by2025 on the satellite technology known as ADS-B, or automatic dependentsurveillance-broadcast, as well as on new data communications andinformation management systems, which would let pilots in passengerjets communicate better with one another and with control towers."

If the bid succeeds, XM's satellites will also track weather formations via a video map in the cockpit.