SkyWaves Research Report estimates that XM Satellite Radio’s [Nasdaq: XMSR] total number of subscribers will reach between 490,000 to 500,000 by the end of the first quarter and 1.24 million by the end of the year. The report forecasts XM’s fourth quarter 2002 revenue at $9.3 million, full-year 2002 revenue at $20.5 million, and first quarter 2003 revenue at $14.4 million.

SkyWaves also predicts significantly lower XM subscriber acquisition costs (SAC) throughout 2003. It is expecting the SAC, which last year averaged around $130 per subscriber, to fall between $100 and $110 for the first quarter. This forecast is based on reductions in XM subsidies for the Delphi SkyFi receiver, which is capturing 65 percent of retail XM sales. XM will release subscriber totals, guidance concerning SACs and other data on March 27.