Washington - The potential consumer impact of a proposed merger between XM Satellite Radio and rival Sirius is in need of "greater clarity," FCC Chairman Kevin Martin told The New York Times in an article on Wednesday.

Despite assurances from Sirius CEO Mel Karmazin that subscribers would not see price increases, Martin -- whose FCC must approve the $13 billion deal -- said that key parts of the plan remain unclear.

"The commission will need to determine the benefits to consumers of this deal, and in doing that, we will need to carefully look at what price will be frozen and what consumers will be getting for that price," Martin told The Times.

"When they talk about freezing rates and lowering rates, are they talking about it in terms of the current rate of $12.95 for each service, or are they referring to the combined rate of $25.90?"

Karmazin told the paper that he meant to say that subscribers wishing to keep their existing service wouldn't face a price increase, although those wanting a combination of XM and Sirius would likely pay more.

Related Links:

Analysis: Sirius and XM Should and Get Out Of Satellite Radio, listen to Tom Petty

http://www.nytimes.com/2007/03/07/business/media/07radio.html

http://www.fcc.gov/commissioners/martin

Poll: Will Consumers Benefit From The Proposed Sirius and XM Merger?