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XM, which is headquartered in Washington, D.C., will compete with New York-based Sirius Radio for subscribers. The two services employ similar technology to beam their music and talk channels to drivers. Though Sirius depends on three satellites to XM's two, there should be little or no difference in performance.

Motorists can buy satellite-ready car radios -- from Alpine, Kenwood, Pioneer, Sony, and other manufacturers -- for installation in existing vehicles. Expect prices to start at around $350, with another $300 in installation costs. Moreover, carmakers such as GM are already building satellite radios into their newest models (Cadillacs will be among the first to have them).

For now, satellite radios will be capable of receiving only one of the two services (in addition to AM and FM). But XM and Sirius are working toward technical compatibility, so in the future, hardware that can receive both services should become available.