Sirius says XM acquisition would allow lower prices, more programs

NEW YORK -- Sirius Satellite Radio Inc. is promising more programming choices and lower pricing options as part of an effort to convince federal regulators to approve its proposed acquisition of rival XM Satellite Radio Holdings Inc.

The deal still faces opposition from several consumer groups, however, and what's certain to be a tough regulatory review in Washington by antitrust authorities and the Federal Communications Commission.

In an application submitted to the FCC on Tuesday and disclosed in a regulatory filing Wednesday, Sirius said the combined company would allow subscribers greater flexibility in choosing programming options, including a lower price if they elect to receive fewer channels.

Customers of both Sirius and XM already can block out adult-themed channels such as Playboy, adult humor and urban music, but they don't receive any discount for doing so.

In the FCC filing, the companies said that customers could elect to receive fewer channels for a rate lower than the current monthly fee of $12.95 offered by both companies.

The FCC filing came on the same day Sirius' CEO Mel Karmazin made his third appearance in front of lawmakers to answer questions about the proposed transaction.

On Tuesday, six consumer and advocacy groups asked the Senate panel to call for a tough regulatory review of the transaction, which would eliminate one of the only two competitors in the emerging satellite radio business.