James Delahunty
23 Mar 2007 0:21
Sirius Satellite Radio CEO Mel Karmazin testified to a Senate committee this week to attempt to convince the committee the proposed merger with XM Satellite Radio should not be considered an antitrust issues. Both satellite radio companies have proposed a $13 billion merger but the FCC is reluctant to play along. Karmazin made some promises and let his opinions known to the committee.
"I should point out that XM has the largest digital radio facility of its kind in the country and is headquartered right here in Washington where the combined company will continue to have a significant presence," he said at the beginning of his testimony, reminding the senators of the jobs that the companies have created. He also said he didn't believe this was an anti-trust issue because the combined company would still face a lot of competition.
He listed AM/FM analog radio, Internet Radio, HD Radio, streaming music to mobile phone and even equipment to use MP3 players in cars as competition. It was his belief that the market here is for digital audio and that how it is delivered doesn't really matter; its not just "Satellite Radio" to think about anymore.
The company's 1997 license with the FCC forbids a merger with XM, but Karmazin addressed the issue by saying, "the 1997 market should not guide policy decisions in 2007". He also promised that prices would stay the same so that customers who want the same or similar services from the combined company would pay the same price. Karmazin also revealed plans to provide packages for less than the current offerings.
Also, a very important promise made is that the new company will broadcast in both the XM and Sirius formats for the foreseeable future, making no receivers obsolete.
Source:
Ars Technica