Lounge0101 offers news, information and discussion forums, including North American Digital Satellite Services such as Directv, Dish Network, as well as Canadian Bell Expressvu and Starchoice in addition to XM Radio and Sirius Radio

RiseStar · November 16th, 2007, 10:44 PM

Earlier this week Sirius Radio shareholders approved the $5 Billion deal to acquire XM Satellite Radio Holdings Inc. The proposed merger of the XM Satellite Radio and Sirius Radio companies would create a single national entity with over 15 million subscribers.

The merger is still before the U.S. Department of Justice and Federal Communications Commission (FCC), which both need to approve it in order for it to proceed. The regulatory hurdle is always by far the most difficult to overcome as many factors need to be weighed in as it would create a monopoly situation which could potentially be taken advantage of at the expense of consumers. A big part of the decision will hinge on whether or not XM and Sirius have made their case that the merger will strongly benefit consumers. Lower subscription costs, increased choice and flexibility are among those topping the list.

The FCC had previously ruled that the 2 satellite companies could not combine, however XM Radio and Sirius Radio have argued that increased competition from digital media, such as online music, the iPod and streaming music over cell phones should be a basis for reconsideration.

Currently, both XM and Sirius offer programming at a flat rate of $12.95 per month which include channels of music, talk, sports and specialty programming. The proposed merger would allow programming packages starting at $6.99 for a 50 channel service on either XM or Sirius as well as a dual service package for $16.99 for all channels on one service as well as a selection of channels on the other service. If, for example you love your XM service but would really love to have your Howard Stern or Martha Stewart, this would be possible, as would sports fans that can get MLB on XM, but need to subscribe to Sirius in order to get NFL.

As both XM and Sirius use distinctly different broadcast technologies, a dual service antenna and tuners would be required, making a hardware upgrade necessary for existing customers wishing to receive both services. Some tuners, such as the portable units may not be dual service compatible as they contain integrated antennas and tuners.

Both the FCC and the Department of Justice are expected to make their decision by the end of the year.

makotonine · November 24th, 2009, 01:10 PM

Sirius and XM currently use two different billing systems. I would imagine at some point they will use the same system and all this, but its anyones guess as to when. It took about a year after the Sprint-Nextel merger was approved for the new billing system to be put into place.