Convergence of satellite radio and cell phones?

Yes, according to Hugh Panero CEO of XM Satellite Radio:

"Obviously, our core base is people who listen to radio in the home and car and now in the mobile market," Panero said, "and I think that as other distribution points present themselves, whether it be cell phones or other mobile devices, we obviously can have a place in that."

XM has had discussions with other service providers and hardware manufacturers, Panero said. "They clearly have a need to efficiently provide content that will help motivate people to buy their hardware, and we're a natural place to go as we have become a more important player in content," he said.

Panero cited greater interest now that XM--the satellite market leader against No. 2 rival Sirius Satellite Radio--draws near 3 million subscribers.

"When you first start out, you knock on a lot of doors. But when you wind up getting nearly 3 million subscribers...the deal flow moves to you," he said.

Watch out for this trend.