As the Sirius and XM satellite radio services continue to seek U.S. government approval for that much-discussed merger, the companies tossed out a few details of the proposed marriage in a document filed with the feds. As Sirius CEO Mel Karmazin (pictured in car above) told a House judiciary committee antitrust task force a few weeks ago, subscribers would have a choice of tiers of service, but not the ability to pick and choose exactly which stations they'd like included in their subscription. In the document, Sirius wrote,
"After the merger, customers may elect to receive fewer channels at a monthly price lower than $12.95; substantially similar programming at the existing $12.95 price; or more channels ... at a modest premium to the cost of one service, and considerably less than the cost of subscribing to both services."
When challenged about pricing, Karmazin made a promise to the suits in the Senate:
Those antitrust hearings are still going on, where Wisconsin Senator Herb Kohl called out the Sirius CEO, saying the merger would result in "a fabulous monopoly" and "a real bad deal for consumers."
Karmazin tried to put out that fire by assuring the senator and his colleagues that the combined company's not going to raise prices. Sure, he says that now. Just like the kid says to daddy when he's begging for the Corvette keys, "I promise not to speed, really."
Sirius, XM to offer reduced price plan after deal [Reuters, via Yahoo News]