Just a month ago when XM and Sirius were ready to ink a deal, they knew there would be problems with the FCC approving what could potentially become a monopoly. They’re still fighting that battle, but so far what has come out of it is a promise of lower prices.
They’ve promised lawmakers who are fighting the deal that prices would be lowered and that no monopoly would come of it should a merge take place. Currently the monthly price for service is $12.95. After the merge, customers would be offered a lower monthly price, but with fewer channels. They’d also offer a more expensive option that would include more channels. Essentially there would be different tiers of service and pricing.
XM and Sirius really haven’t come across smooth water yet, especially with the recent lawsuit they are both facing for patent infringement. Keystone Autonics filed the lawsuit saying that both XM and Sirius are using technology that is protected under a patent that they filed just this year in January of 2007.
For now, XM and Sirius are left to battle it out with lawmakers over the merger that would save them an estimated $7 billion per year, as well as a judge over patent infringement. Not a good start to 2007 for satellite radio!
Source: Rueters via [Yahoo]