Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Robert Peck.
Robert S. Peck - Bear Stearns
Just a couple of quick questions here, if you don’t mind. First of all, Mel said on their call a couple of days ago that they basically had gone radio silent with the DOJ over the last several weeks. Can you confirm that as well for XM? And when was the last time they requested any information from XM?
Gary M. Parsons
I would never contradict Mel. No, it -- he’s absolutely right. As you know, obviously they run that process on their schedule and on their needs in a professional manner and they communicate with us when they need additional information. It frankly has been a material period of time since they have requested any additional information. There was some that we sent to the FCC more recently but yes, it is a point right now where we are waiting to hear either for any other information requests or a decision.
Robert S. Peck - Bear Stearns
And Gary, as far as the March 1st deadline here, as both boards meet on that, is there anything else that changes along with that decision, besides just the fact of extending that deadline a month, two months, or whatever need be?
Gary M. Parsons
No.
Robert S. Peck - Bear Stearns
Okay, and maybe for Joe, could you go over your fully funded status? First of all, do you see XM fully funded as a standalone company? And if so, how much cushion do you think XM has and what sort of impact are you accounting for there as far as a prolonged recession?
Joseph J. Euteneuer
First off, yes, we are fully funded. Second off, we have not really talked about our 2008 plans yet just because we don’t know whether we’re going to be a standalone entity, so what I would tell you is based on where we are and what we think we are going to do on a going forward basis, we are fully funded and let us come back to you at a later date with more specifics.
Gary M. Parsons
One additional point on here and it’s more just to the last part of your question relative to a prolonged recession or something like that, the one thing that I will have to say has been quite a positive feel for me over -- and this frankly is a result of both satellite radio companies but I know ours specifically, during the time when there has been a drop in consumer confidence, worries about a slowing of consumer discretionary spending, if you’ll notice our churn rate is rock solid, even actually a little improved. Our conversion rate among the new cars that we are seeing sold has been rock solid as well and of course our ARPU is rock solid, so that means we’re not having to discount things to keep people on board.
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