Satellites are one of the greatest achievements of mankind. They have been used for various applications like communication, military application, weather forecasting and so on. They play a big role in the case of television channels and other entertainment networks. One of the latest applications of satellites is the satellite radio. Satellite radio is a subscriber based radio service that broadcast directly from satellites. It is an advanced form of mobile radio service where one can receive compact disc quality music and other entertainment channels. Even if the person is miles away from the radio station, the quality of the program is not affected. The paper deals with the basic structure of the satellite radio and its transmission and reception procedures. For the listener, digital radio will be more than just 'the best sound on the airwaves', it will be an intelligent communications device that will offer more services and conveniences than can be provided by conventional analog technology.For the broadcaster, digital radio is not just a way to stay competitive with other forms of digital sound, but one that offers numerous new business opportunities as well. It is a bright future for listeners and broadcasters alike: a future that truly promises to provide 'the best sound on the airwaves' for the world.