• Mediaweek, Friday, March 9, 2007 9:45 AM

Mel Karmazin, the head of Sirius Satellite Radio, claims that a merger between his company and XM Satellite Radio would not mean higher prices for consumers. Speaking to a congressional committee investigating the possible combination, he says the most anyone would have to pay is $25.95, if they choose to receive all of the programming available on both services. "Prices will not go up," says Karmazin. "The only increase in pricing would be if you take content from both companies and their price comparison is $25.95, and the price will drop significantly from that."

But Karmazin had left the House Judiciary Committee with the impression that the combined service would cost consumers no more than the current $12.95 customers pay for one service. If $25.95 would be the maximum for the immediate future, some customers could pay less than subscription for a single service package that didn't include all the programming. For instance, a music lover who didn't want any sports could opt for a package that would cost less than $12.95.

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