I wanted to ignore this - because it's just so outlandish and completely incorrect - but I've been getting so many emails all day that this post simply needs to be addressed.

A recent post on The Consumerist which features the wonderfully scandalous headline: XM-Sirius Merger Will Double Monthly Prices? is wrong. Pure and simple, wrong.

According to "a customer service rep" (-10 points instantly), a tipster has told the normally-useful blog that XM Radio's prices will "roughly double" by May.

Here's what was supposedly said:

"This is strictly confidential, but all the paperwork is signed and ready to go, and XM has fully acquired Sirius Radio. Come May, there will be a substantial price increase for XM Radio, as it will, in June or so, host all the Sirius channels. It would be best to simply extend your XM plan as we will honor your current contract price per month before we begin hosting the Sirius stations."

How many holes do you see in that statement?

The problem I have is that back in July of last year, Sirius and XM outlined their pricing strategy post-merger. And in front of multiple Congressional hearings, and for countless times throughout the past year or so, we've heard the "more choice, better prices" mantra repeated over and over again. Yet, when a single outsourced customer service rep (if such nonsense even came from this source) says something completely ridiculous like this, everyone perks up and listens.

Just so we're clear:
Everything, and I mean everything, from that quote above is wrong.

[The Consumerist]
Thanks to everyone who sent this in!

Last week's decision by the Department of Justice may have a domino effect for other major satellite players in the coming year, says GigaOM.

They point to satellite operators including Iridium, Globalstar, ICO Global Communications, TerreStar Corp. and Mobile Satellite Venture which are all trying to operate or build out networks. But with a shortage of spectrum for some, these may choose to follow Sirius-XM's lead, and join forces.

Given the spectrum owned and the types of satellites launched, Tim Farrar of TMF Associates feels that the likeliest deals would be between ICO and TerreStar; Inmarsat and MSV; and Globalstar and Iridium.

Does the Sirius-XM deal set off an opportunity for other satellite mergers in 2008? I'm less inclined to think so.

Simply by observing the length of time it took the DOJ analyze the situation, combined with the upcoming possible political shift in power, and you'll realize that Sirius-XM came in just under the wire with this decision. If a less M&A-friendly Democratic administration is elected to office, these types conditionless satellite mergers would likely be put on hold for the near future.

[GigaOM]

Counsel for both Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. met with top officials from the Federal Communications Commission on Wednesday, according to a recent filing with the agency.

The meeting was with FCC Chairman Kevin Martin; Daniel Gonzalez, Chairman Martin's Chief of Staff; and Michelle Carey, Chairman Martin's Senior Legal Advisor.

According to the filing, the meeting was held with the Commission to discuss action on the merger following the decision by the Department of Justice. In addition, the filing included the programming packages and proposed pricing seen here and here.

View the FCC filing after the jump...

A gaggle of state Attorneys General today urged the FCC to impose restrictions on the merger of Sirius Satellite Radio, Inc. and XM Satellite Radio Holdings Inc.

The AGs - coming from 11 states that include Connecticut, Ohio, Missouri, and Iowa - told the Commission that they were "disappointed" by DOJ's decision to let the deal proceed without conditions.

"The combination of these companies will result in a single corporation controlling access to all nationally available satellite radio," the attorneys general said.

And what do they want?

The states are saying that the FCC should consider requiring Sirius and XM to make interoperable radios available to customers (uhm, ok), offer different packages of channels on an a la carte basis (uh huh), and divest some radio spectrum that would allow another competitor into the business (it depends, how much?).

"Our offices stand ready to share with you our thoughts on the potential value of various remedial conditions available, such as mandatory publicly available interoperable receivers, a la carte pricing, and divestiture of spectrum."

I don't think there was ever a question of concessions. Mel Karmazin, during the many hearings on Capitol Hill, clearly stated the companies' willingness to provide concessions so that regulators would deem the merger in the public interest. I'm not exactly sure where these Attorneys General have been, but much of what they're asking for has already been baked into the merger. But that's politics for you...

[via Reuters, RadioInk]

Looks like everyone needs to weigh in on the Department of Justice approving the Sirius-XM merger. Next up to the plate: The RIAA.

Mitch Bainwol, Chairman & CEO of the fan-favorite organization, decided to spin the situation to include the performance royalty argument with terrestrial radio...

"The merger's approval serves as a powerful validation that competitors should play by the same set of rules. On the heels of this decision, the logic for a performance right for terrestrial radio has never been clearer. Terrestrial radio - unlike satellite, Internet and cable radio - continues to reap special interest subsidies in the form of free government spectrum and an outdated exemption from compensating artists and record companies. It's time for that to change and for Congress to provide an economic marketplace where there is parity amongst all delivery platforms."

And while I disagree my blogging colleague Mark Ramsey on the whole issue of performance royalties for all forms of radio, I do agree with his feelings that these two issues are completely unrelated.

Photo courtesy of icanhascheezburger.com

This episode of "Fool Video," features The Motley Fool's Chris Hill with senior analyst Seth Jayson talking about the post-merger future of XM and Sirius. It's an interesting watch. I especially enjoyed the Braveheart reference.

(Side note: There's a certain level of personal amusement to see that "radiating dog" graphic showing up everywhere, especially since I created it before the merger was even announced. Funny stuff.)

[Fool Video]

UPDATE: I just want to point out that the AP story has been updated to be somewhat less misleading. Previously it read "More Choice in Satellite Radio Years Off" but now the article, written by Christopher S. Rugaber, reads: "'A La Carte' Satellite Radio a Year Away."

Also, there's a bit of confusion surrounding the timing. Understand that the "3 years" cited here is based off of Barrington Research's estimates for OEM radios (due to the lag time that automakers tend to require) that does not mean Retail radios will suffer the same slowness in getting to market. Sirius and XM have said, from the beginning, that the A La Carte receivers will be available to customers within one-year after the merger is complete. I just wanted to make sure this was clear.

Following the merger of Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc., it could take up to three years before new cars would feature both services in "a la carte" packages.

That's the prediction of media analyst Jim Goss at Barrington Research, who told the Associated Press that automakers require lead times of several years to update dashboards with new products. As a result, cars with interoperable radios likely wouldn't be on dealer lots for up to three years.

That's not to say that both Sirius and XM won't be providing "best of" programming (see: will my radio still work?), which essentially is simulcasting of certain content from one service to another. We don't know exactly what big-name programming will be available yet - those content agreements all need to be worked out once the deal is finalized.

Still, analysts seem to think that few current subscribers will pony up for the new receivers.

Perhaps 5% to 10% of current subscribers "might go through the trouble" of buying new radios for the "a la carte" option, Stifel Nicolaus analyst Kit Spring wrote in a recent note to clients.

So here's a question:
Since most of you are current Sirius or XM subscribers - would you buy a new receiver when the "a la carte" enable radios come out?

The National Black Chamber of Commerce (NBCC) today called the decision by the DOJ a "monumental step in providing increased access to diverse programming."

The NBCC also contends that throughout the process, the group has maintained precisely what the DOJ ultimately found: that there are "efficiencies likely to flow from the transaction that could benefit consumers." As a result, NBCC feels that the merger would be the first step towards more diverse programming.

The NBCC urged the FCC to approve the merger without "onerous merger conditions" so that all merger efficiencies can be realized.

Edwin Meese, the seventy-fifth U.S. Attorney General under Ronald Reagan, and Senior Research Fellow in Regulatory Policy James Gattuso, weighed in on the DOJ's Sirius-XM decision in a joint statement:

"Yesterday's decision by the Department of Justice not to oppose the merger of Sirius and XM was a victory for consumers. Kudos to the DOJ for recognizing that antitrust laws should not look only at narrow, formalistic, definitions the market, but instead at the realities of the marketplace. As our research has shown, the radio market is highly competitive - with satellite radio only one among many competing options for listeners. And by allowing satellite radio to become more efficient, this merger promises to increase that competition. Now it's up to the FCC to complete this year-long process by granting its own approval. It should do so expeditiously, without conditions."

[Heritage.org]

I am questioned constantly (nearly everyday even) from satellite radio subscribers concerned about their existing radios. Since the DOJ approved the merger, these questions have bombarded my inbox even more: Will my Inno work after the merger? Do I need to buy a new Stiletto after Sirius and XM merge? I just bought a new car, will my new satellite radio still work? You get the idea.

Here's the facts:
From day one Sirius and XM have promised that no existing radio will be made obsolete by the merger. (Afterall, that would be silly from a business sense wouldn't it?) The reality is that you will be able to get the "best of both" Sirius and XM on any of today's satellite radio devices with one monthly subscription.

• If you're an XM subscriber:
  You'll continue to receive your existing XM service, and gain the ability to receive certain Sirius programming.
  
  
• If you're a Sirius subscriber:
  Sirius customers would continue to receive their existing Sirius service, and be able to obtain certain XM programming.

There are eight different packages that the companies have announced they will offer following the merger. Prices for each will range from $6.99/month to $16.99/month. If you don't want anything to change, it won't - the "Everything" packages will cost the same as what you currently pay.

• View the XM channel lineup after the merger
• View the Sirius channel lineup after the merger
  

Can I get MLB on my Sirius after the merger? Will I can get NFL on my XM?
The real answer? We don't know for sure. If you read through those post-merger channel lineups, you'll notice that there are "top selections" made available for both sides. Obviously, like anything else in this world, contracts will need to be negotiated to iron out all the details. We will find all that out after the merger is finalized.

First-ever A La Carte packages
Of those eight packages, two will be "a la carte" packages. These will be the first ever a la carte options in subscription media. Ever. You will have the choice of either a 50 channel package (starting at $6.99) or a 100 channel package ($14.99), and then choose from a selection of channels to your liking. "Premium" content will cost more, but this will be the first time that you can pick and choose what channels you want on your radio. (Hint: if you mostly want the commercial-free music, with a smattering of news/talk, then the a la carte packages will be perfect for you.)

There's one caveat: A la carte programming will only be available for subscribers using new radios.

These new a la carte capable radios are currently in development and will be brought to market following final approval of the merger. Sirius and XM originally estimated it would take one-year to bring them to market, but since the merger process has dragged on much longer than anyone expected, it's hard to know the exact timeline now.

If you have any questions, as always, feel free to email me at ryans@orbitcast.com and I'll help out as best as I can.