Cost Question Orbits Sirius Satellite

As Sirius Satellite Radio (SIRI Quote) debates the launch of another satellite, investors mull the costs.

Already burning through piles of cash to fund its money-losing subscription radio business, Sirius now faces a big capital spending decision. The New York-based pay radio shop is considering what to do with its fourth satellite, which currently sits on the ground serving as a backup in the event of trouble with any of its three orbiting satellites.

The company is weighing whether or not to launch the satellite early in an effort to boost its signal coverage, Bear Stearns analyst Bob Peck said in a research note Wednesday. ...