(Associated Press via NewsEdge) Among the chief selling points for consumers if the nation's only two satellite radio companies are permitted to merge has been that the combined company would offer a much larger selection of programming without increasing prices.
Sirius Satellite Radio CEO Mel Karmazin dashed those hopes, however, in testimony before a House subcommittee. Admitting 'there was some confusion' over pricing following his appearance before the House Judiciary Committee the week before, Karmazin said if customers want to get programming from both Sirius and competitor XM Satellite Radio, they will pay more than the usual monthly fee of $12.95.
Exactly how much more, he did not say.
Karmazin, who would run both companies, was making his second appearance on Capitol Hill in an attempt to rally congressional support for the proposed merger. It will be a tough sell; when the Federal Communications Commission created the satellite radio industry in 1997, it did so on the condition that the two licensees would not merge.
Karmazin said if a customer today subscribes to both XM and Sirius, it would cost him $25.90 a month, in addition to the cost of the two different satellite radio receivers. If the merger were allowed to go through, customers would be able to get programming from both services on their existing radios for less.
The hearing was largely an academic exercise, as was a similar session at the House Judiciary Committee last week. The panels have little authority over the transaction at this stage. It requires approval by the Department of Justice and the Federal Communications Commission. Sirius hopes to complete the process within six to nine months.
© 2007 The Associated Press
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