Mel Karmazin, the present CEO of Sirius Satellite Radio - and slated to become the CEO of a merged Sirius-XM, if approved by regulators - agreed to an interview with Orbitcast to discuss the pending satellite radio merger.

Knowing that Orbitcast readers include subscribers, investors and industry watchers alike, Karmazin went into great detail about the state of competition, the proposed a la carte pricing, and the overall prospects of the merger.

"More choices, better pricing." This has been the mantra throughout the merger process. What would prevent you from raising prices after the merger is approved?

Here's how we came up with that. When I had the Board meeting to discuss what we had to accomplish to get the merger approved, number one we had to demonstrate that it was not anti-competitive. And we believe clearly that satellite radio competes with all kinds of other audio entertainment devices, especially terrestrial radio. The fact that the NAB has been so aggressive in this - and thank goodness for them - has really proved our point. That we do compete with them.

Sirius has taken the wraps off of the new Sirius Stiletto 2, something that we all knew was going to happen less that two weeks ago.

Here's the breakdown of the features and highlights:

• Store 100 hours of content
• The Stiletto 2 is smaller (1.9" x 4.3" x 0.6") and lighter (4.3 oz)
• Enhanced 802.11 b/g WiFi now supports commercial hotspots (username/password options now available)
• MicroSD slot for expandable MP3 storage
• Support for any Windows Media-based music store
• Sirius Replay, which allows users to pause, rewind and replay 60 minutes of live radio programming
• Radio Replays - stored music broadcasts from your favorite music channels that create "virtual channels" - these are available even when you have no WiFi or Sirius signal (awesome)
• Altec Lansing will supply new antenna headphones (model # AHP202SIR) for the Stiletto 2. Featuring 30mm drivers and an adjustable headband for increased comfort.
• Battery life: 4 hours live satellite, 10 hours WiFi, 20 hours of pre-recorded content
• MSRP: $349.99 (vehicle kit: $49.99; executive system: $149.99)
• The Sirius Stiletto 2 will be available in Fall 2007

Wow, I want one. May I say, the Stiletto 2 looks like it blows the Inno out of the water.

Thanks to everyone who sent this in!

FCC Chairman Kevin Martin said to reporters he was "pleased" with the a la carte proposal submitted by Sirius and XM, calling it an "important proposal."

Though he admitted that he hadn't read the details of the plan put forth by the two satellite radio companies, Martin said he was "pleased any time companies come forward with proposals that would give consumers more control over what they pay for."

The issue of a la carte has been one Martin has long advocated for cable television companies. It was widely seen by analysts that Karmazin was trying to curry favor with Martin with the proposals.

Martin, who was speaking to reporters after the FCC's monthly public meeting, said he could provide no guidance on when the merger might be decided on by commissioners.

Even while the National Association of Broadcasters (NAB) attempts to scuttle the Sirius-XM merger, they still can't resist admitting that they compete directly with satellite radio and other forms of audio media. We're not talking about NAB CEO and President David Rehr's speech at the National Press Club last year (watch the video here) where he lists satellite radio as a competitor. Though that alone is fairly telling. Instead, its now their web site and a promotion of an upcoming session at the annual NAB Radio Show, that admits it all:

"In the AM radio days, perhaps there were a half-dozen radio choices for most consumers. With the advent of FM, the number expanded to perhaps 20 or 30 options. Today, with satellite radio, streaming and pod-casts, the options are nearly infinite. The consumer will soon see an ‘Infinite Dial’, where any kind of radio, for any kind of taste, will be available at any time. How will your station compete in such an environment, where anyone can find anything at any time?"

Indeed. Despite flip-flopping their position, backpedaling claims that satellite is not competition, banner hanging campaigns, and let's not forget the old sow's ear; the NAB still can't resist citing satellite radio as competition. It's one thing to mention it during a speech, but it's another to spell it out on your website. Unless of course... it's the truth. [NAB Radio Show: The Infinite Dial]

During this week's earnings call, Sirius' President of Operations and Sales, Jim Meyer, announced that details on the upcoming Sirius Stiletto 2 and Sportster SP5 would be released soon.

"...we are preparing for the launch of some new after market products, including a new wearable product, Stiletto 2, and a new Sportser SP5. Stay tuned for more details on these exciting new products next month," Meyer said.

"We now believe that Sirius has reached market share parity in the wearable category and we expect to be the leader with the introduction of the new Stiletto 2 this fall."

While there's no info out (...yet) on what the Stiletto 2 will have in store for us, I'd assume a smaller form-factor and increased storage space would be in order. I have a funny feeling we may be learning the full details on the Stiletto 2 sometime within the next two weeks. But that's just idle speculation.

In the meantime, what features would you like to see in the new Stiletto 2? Sound off in the comments.