Merger Of Satellite Radio Companies Will Increase Competition

The proposed merger of Sirius satellite radio and XM will offer more choice and will "make choice cheaper", the boss of Sirius has claimed.

Mel Karmazin wrote an open letter in the Washington Times, appealing to the Federal Communications Commission to accept the deal to merge Sirius with its rival XM Satellite Radio.

The proposal, which is to be considered by the commission this week, would see the creation of "a la carte" programming, enabling consumers to pick and choose what radio they listen to, for a subscription fee. This is aimed to counter criticism from the National Association of Broadcasters that the merger would limit competition and be counterproductive.

Mr Karmazin said: "Have you ever heard of a product or service that hurt competition by lowering prices and increasing choice? I don't think so. In fact, it seems to me the NAB isn't afraid the merger will foster too little competition. It's afraid it will foster too much." Sirius has a number of high-profile shows on its airwaves, including shock-jock Howard Stern and the BBC's Radio One, while XM is home to Oprah Winfrey's Oprah and Friends.