WASHINGTON, Feb. 28 (UPI) -- The nation's two satellite radio companies told a U.S. congressional panel Wednesday they wouldn't raise prices -- at least for a while -- if they merge.
Mel Karmazin, chief executive of Sirius Satellite Radio, told the House Judiciary Committee's antitrust task force that consumers would benefit if the government approved his company's merger with XM Satellite Radio Holdings, the Washington Post said.
"We are committed to not raising prices, and we are committed to lowering prices," said Karmazin, who would be chief executive of the new company.
But lawmakers were skeptical.
"How do we enforce promises?" panel chairman Rep. John Conyers, D-Mich., asked. "'Trust me' isn't going to work here."
The Justice Department and Federal Communications Commission will determine whether Washington-based XM and New York-based Sirius can merge, but the hearing provides a venue to voice arguments for and against the proposal.
A decision may take a year.
In 1997, the FCC granted licenses to XM and Sirius on the condition that no one owner control both companies. FCC Chairman Kevin J. Martin has said the companies had a high hurdle to clear to persuade the commission to change the rule.
