Sirius XM & AT&T Collaborate To Deliver 4G LTE Connectivity

Sirius XM (NASDAQ:SIRI) recently announced that its subsidiary, Sirius XM Connected Vehicle Services, has joined forces with AT&T Inc. (NYSE:T) to provide 4G LTE connectivity. The service will support SiriusXM Guardian – an in-vehicle package of SiriusXM. This package offers safety, security and convenience to certain 2017 model year FCA US LLC vehicles. It is worth mentioning that AT&T is well known in the connected car industry.

SiriusXM has been steadily expanding its portfolio with a wide range of products and services. We believe that the company is poised for growth despite competition from peers like Central European Media Enterprises Ltd. (NYSE:T) and NTN Buzztime Inc.

Details of the Product

SiriusXM Guardian includes services, such as Roadside Assist Call, Remote Vehicle Start and Door Lock/Unlock along with Remote Horn and Lights. The product also offers an SOS service that allows users to contact a SiriusXM response specialist simply by pressing on a button to send details about the location. Other features include Theft Alarm Notification, Stolen Vehicle Assistance and a Vehicle Finder feature through mobile phones. The company’s package also has a “Send and Go” feature, which enables mobile phones to send location details directly to the vehicle’s navigation system. All these features are expected to significantly improve the in-car experience of vehicle users.

The latest product service is available on vehicles such as the 2017 model year Chrysler 300, Dodge Challenger and Dodge Charger. These vehicles require the 8.4-inch the Unconnect system to use this product. Notably, vehicle users will also get a one-year subscription to Sirius XM. This will be included in the purchase or lease price.

Company Update

We note that shares of SIRIUS XM have performed well lately having outperformed the Zacks-categorized Broadcasting- Radio-TV industry over the last three months. The stock increased 5.13% compared with the industry, which has increased only 3.98% over the same period. The deal with a major player like AT&T is a further positive for the company.

Per some media reports, SIRIUS XM is planning to acquire Pandora Inc. (NYSE:P) . However, there is no confirmation yet from the company.

Zacks Rank

SiriusXM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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