FCC chief questioning XM-Sirius deal: paper

NEW YORK (Reuters) - Kevin J. Martin, the chairman of the Federal Communications Commission, has privately questioned recent congressional testimony by the architect of a proposed merger of the nation's two satellite radio companies that subscribers would both pay the same monthly rate and receive significantly more programming, The New York Times reported.

As he sought to sell the proposed merger of Sirius Satellite Radio (SIRI.O) and XM Satellite Radio XMSR.O to Congress, Mel Karmazin, the chief executive of Sirius, vowed last Wednesday that prices would not be raised and that listeners would benefit enormously by getting the best programming from both companies.

But in separate conversations with two people after Karmazin's testimony to a House committee, Martin said subscribers may be surprised to learn they may actually have to pay more than the current monthly rate of $12.95 if, for example, they want to receive all the games of Major League Baseball (now available only on XM) as well as all the professional football games (now only on Sirius), the Times reported.

Martin, in an interview on Tuesday, suggested that the details had not been clear from the testimony, the Times said. He emphasized that he was not questioning the motives or candor of Karmazin but that there was "a need for greater clarity" over what was being proposed for fees and programming, the Times reported.

Representatives from XM, Sirius and the FCC were immediately unavailable for comment.