CNN reports on rumors that Apple may be working on a deal with Sirius Satellite Radio to bring satellite radio service to the iPod.Technical hurdles include the difficulty of integrating the Sirius chip set into a device as small as an iPod, but both companies could benefit from such a deal in both publicity and sales.Speculation is that a deal could be announced as soon as the Consumer Electronics Show or at Macworld Expo, both coming up in early January.Sirius, which has been making big moves to try to catch rival XM Satellite Radio, already grabbed headlines by hiring shock-jock Howard Stern and could make waves again by a deal with Apple, the market leader in portable music players.Both Sirius and Apple declined comment.

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