Sirius CEO Faces Skeptics in Senate

SIRIUS CEO FACES SKEPTICS IN SENATE
[SOURCE: Associated Press, AUTHOR: Matthew Perrone]
Senate Commerce Chairman Daniel Inouye (D-Hawaii) said Tuesday Sirius Satellite Radio has "a steep hill to climb" in showing that its proposed purchase of XM Satellite Radio will not hurt competition in the audio entertainment market. "Given the public interest in promoting competition and maximizing a diversity of media outlets, we should be skeptical of claims that new technologies necessarily 'change the equation' and provide competition sufficient to restrain monopoly power," Sen Inouye said. Sirius Chief Executive Mel Karmazin told members of the Committee a combined satellite radio provider would benefit consumers by letting them access both companies' services for a diminished price. Both companies currently have subscription fees of $12.95. Karmazin said a merged company would be able to provide both companies' programming on one "interoperable" radio for less than the $25.90 it would currently cost to subscribe to both services. Karmazin also said the merged company would offer consumers the option of subscribing to fewer channels for a monthly price lower than $12.95. The combined company would consider offering regulators a guarantee that they would not raise prices in order to complete the merger, Karmazin said.
http://www.latimes.com/technology/ats-ap_technology14apr17,1,6249215.sto...
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* Sirius CEO pitches US lawmakers again on XM merger
http://www.reuters.com/article/technologyNews/idUSN1724611420070417
* Karmazin Commits To Merger Conditions
http://www.broadcastingcable.com/article/CA6434583.html
* Statement of Senator Daniel K. Inouye on XM-Sirius and the Public Interest
http://commerce.senate.gov/public/index.cfm?FuseAction=PressReleases.Det...
* Public Knowledge Testimony
http://feeds.publicknowledge.org/~r/publicknowledge-main/~3/109642088/911