Enter multiple symbols separated by commas

XM-Sirius Defends Proposed Cost of Merged Service

The price of satellite radio offered by a merged Sirius Satellite Radio and XM Satellite Radio would be less than subscribing separately to both services, Sirius' chief executive Mel Karmazin said on Wednesday.

"If our merger is approved, we will offer consumers a much more attractive choice -- the best of each service on one radio at a price well below the cost of the two services today," Karmazin said in prepared remarks for a House telecommunications subcommittee hearing.

Karmazin's prepared remarks about Sirius' acquisition of XM did not elaborate about what the new price would be. XM and Sirius each charge subscribers $12.95 monthly.

One week ago, Karmazin told a House Judiciary Committee antitrust task force that that he was ready to make concessions in order to get the deal approved, such as capping prices.

"Those who want to take advantage of new services, like the best of both program line-ups, will be able to do so for less than this would cost today, -- all with their current radio," he said in remarks prepared for Wednesday.

Earlier on Wednesday, the New York Times reported that Federal Communications Commission Chairman Kevin Martin wanted more clarity about what the combined service would cost, if government regulators agreed to let Sirius buy XM.

Consumer groups have criticized the proposed deal, saying it could mean higher prices and obsolete equipment for some subscribers.

The proposed deal needs to be approved by the Justice Department's antitrust office as well as the FCC. The FCC issued the satellite radio licenses in 1997 on the condition that the two companies would never merge.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video

  • Wall Street awaits Fed, snaps losing streak

    The stock market has broken its five-session losing streak, but the fate of today's trading will likely rest in the hands of the Fed, which releases its post-meeting policy statement this afternoon.

  • Delivering Alpha unfiltered: Global Opportunity

    Complete video of Andrew Ross Sorkin's panel on how to navigate the wide array of global investment challenges that investors face featuring Chris Ailman, Mary Callahan Erdoes, Eric Mindich and Richard Perry.

  • Cramer: Signs point to another rally

    Mad Money host Jim Cramer shares his view of the market rally in Tuesday's trading session. Finally we have a good setup, he says.