The company had its origins in the 1988 formation of the American Mobile Satellite Corporation (AMSC), a consortium of several organizations originally dedicated to satellite broadcasting of telephone, fax, and data signals.
In 1992, AMSC established a unit called the American Mobile Radio Corporation dedicated to developing a satellite-based digital radio service; this was spun off as XM Satellite Radio Holdings, Inc. The satellite service was officially launched on September 25, 2001. While the satellite receiver radio service was its primary product, XM operated several audio and data services, and advertising.
Further, Sirius XM was sued in federal court by a customer accusing it of deceptively raising prices.
The report also stated that "Sirius, in a statement, said it was cooperating with the investigations and that it believed its 'consumer-related practices comply with all applicable federal and state laws and regulations.'" in addition to a network of ground-based repeaters.
However, citing uncertainty in the satellite radio market, Zipcar announced on May 1, 2007 that all XM radios would be removed from its fleet in the following months.