XM Satellite Radio has announced the termination of a prior agreement to acquire WCS Wireless, a private entity. XM had been seeking additional wireless spectrum WCS Wireless held in certain geographic areas throughout the United States. The deal, previously announced on July 13th, 2005, would have seen XM acquire WCS wireless for 5.5 million shares of XM Common Stock.

At the time of the acquisition agreement between XM and WCS Wireless the parties had expected to close their transaction by this time, with the timing dependent on receipt of necessary government approvals.

Neither XM or WCS has been able to obtain approval for the new use of the spectrum held by WCS. Accordingly, XM and WCS Wireless have agreed to terminate the acquisition agreement in order to free WCS Wireless to pursue other alternatives for its spectrum licenses.

XM had at one point hoped to use the additional bandwidth to provide "a variety of multimedia subscription services, including innovative video and data offerings" in areas covering 160 million people throughout the United States and including 15 of 20 top metro markets.

In commenting on the termination, Gary Parsons, Chairman of XM, stated, "With the inability to obtain the necessary government approval for this transaction in a timely manner, WCS Wireless needed to pursue alternatives for its spectrum with greater certainty of regulatory approval."