America News: Sirius CEO testifies before Senate re: Sirius-XM merger

Sharon

Sharon Gill

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20th April 2007

Sirius Satellite Radio CEO Mel Karmazin testified this week in a hearing before the Senate Committee on Commerce, Science & Transportation regarding the Sirius-XM merger.

Karmazin highlighted the significant benefits for consumers resulting from the proposed merger and the extensive competition that satellite radio faces from a wide range of players in the audio entertainment market.

Karmazin’s testimony included:

The combined company would offer consumers more choice at lower prices

• The key to gaining more subscribers is not in widening the price gap between free and payable subscriptions, but in offering consumers better value.
• Significant portions of the savings achieved through the merger will be shared with customers, immediately and in the long-term, through lower prices and improved service offerings.

Satellite radio is a small part of a highly competitive and ever-expanding market for audio entertainment

• The combination of Sirius and XM will intensify this competition, expand the choices for consumers, and reduce prices.
• Sirius and XM must compete directly and intensely with a host of other audio providers for consumer attention in the rapidly evolving US market.

The merger will help accelerate deployment of advanced technology

• The combined company will be able to offer consumers access to advanced technology sooner than would otherwise occur.
• The two companies’ combined engineering organisations will ensure better results from each dollar invested in R&D.
• While no radio will become obsolete as a result of the merger, it is expected to stimulate the development of new interoperable, highly portable, low-cost and user-friendly devices.