Hughes Space and Communications International, Inc., now Boeing Satellite Systems, Inc., and XM Satellite Radio Inc. signed a contract 23 March 1998, for two BSS-702 model satellites, named XM 1 and XM 2 (nicknamed "Rock" and "Roll"). These satellites are designed to provide state-of-the-art digital audio radio programming directly to cars, homes and portable radios coast to coast. The contract, amended in June 1998, calls for Boeing to deliver the high-power satellites in geosynchronous orbit, using the Sea Launch vehicle. XM also has ordered long-lead parts for a spare satellite.

Together, the two XM spacecraft will deliver up to 100 channels of crystal-clear, digital-quality music, news and information to cars, homes and other listening environments equipped with a small antenna. XM-capable radios and audio systems will be marketed by Alpine Electronics, Inc., Delphi Delco, Pioneer Electronics Corporation and the Sharp Corporation.