Sirius and XM Trying to Merge

Beyond all the bells and whistles of the benefits and perks to be expected if the merger passes, the National Association of Broadcasters Executive Vice President, Dennis Wharton adds to the skepticism.

"The history of business in America demonstrates that consumers benefit when there is more competition for a product instead of one provider. Competition means more attention [to the consumer] lower prices, better service, better technology and more attention," said Wharton.

"Without competition there is no incentive to offer the best prices," says Wharton.

However, as Karmazin pointed out today at the NPC, "these are the lowest prices today, out there that we are offering," and that is as Karmazin stated part of competition is and it appeals to the consumers to have more choices.

"It is the elimination of this competition that drives the two to seek the merger. The main reason to support the merger is to ensure that at least one satellite radio service survives without going through bankruptcy. If they do not merge, one or both may end up in bankruptcy," says Danny Adams, a Telecommunications and Antitrust and Trade Regulation lawyer with Kelley, Drye & Warren LLP.

With all the struggles between the FCC and the NAB, about this merger being a monopoly, Karmazin did address the fact that, "both SIRIUS and XM would continue fine separate," but that "if I have any say, it will be passed."

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