Sirius Satellite Radio CEO Mel Karmazin testified Wednesday before the House Judiciary Committee in a review of the proposed merger between XM and Sirius. In his testimony, Karmazin vowed not to raise subscription fees, but rather to lower them, which at least one member of the committee found unbelievable. From The Wall Street Journal:Rep. John Conyers (D., Mich.), chairman of both the Judiciary Committee and the task force, was skeptical. "We don't have too good a record of satellite companies keeping their promises," Mr. Conyers said. "'Trust me' isn't going to work here, not just today, but in the longer-term examinations you will be going through."
Other members thought the deal might receive approval, but only if Sirius and XM agree to:
- allow customers to choose stations on a channel-by-channel basis or a tiered format similar to cable TV.
- make 5% of the channel capacity available for noncommercial, educational purposes.
- freeze prices for at least three years.
Karmazin did not seem to think that it would be possible to allow channel-by-channel or tiered subscriptions, and was noncommittal on how long rates could be frozen, suggesting a possible maximum of four years.
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