Washington - Satellite radio firms Sirius and XM said in an SEC filing that they believe that Federal Communications Commission (FCC) rules do not prohibit one company from owning two satellite radio licenses, Reuters reported.

FCC chairman Kevin Martin said at the time the companies' proposed $4.16 billion merger was announced that one obstacle would be an FCC rule that prohibits a single company from owning multiple licenses -- included to encourage satellite radio competition.

"Nowhere does that rule prohibit the ability of a satellite radio licensee to transfer or assign its license in any way," Sirius and XM said.

"Indeed, the commission's 1997 reference to this rule expressly recognizes that the agency's rules contemplate and permit the filing of this application for the transfer of control of both satellite radio licensees to common ownership."

FCC chairman Martin told Reuters that he had not yet reviewed the merger application, submitted on Tuesday.

The Sirius-XM merger must be approved by both the FCC and U.S. Justice Dept.

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