XM, Sirius Address Customer Concerns

Hoping to quell customer unease over its planned merger, both Sirius and XM issued open letters to their customers, assuring them that all radios will continue to work well after the merger, and that current customers will not see their monthly fee raised.

In the weeks following the proposed merger announcement, both analysts and customers of either company began to speculate that rates would increase and that newer radio models compatible with the merged company's programming will replace current ones.

While the statements seem to leave the door open for rate increases on new customers, as well as newer radios that may offer enhanced functionality, it appears, at least for the time being, that the two companies do not have any plans to make major changes.

"Sirius has millions of radios in the market, including many that are built into the vehicles manufactured by its automakers," that company said in a statement. "Following the merger, XM expects that the existing radios will be able to receive a mix of programming from both services," XM added in its own letter.

XM published its open letter to customers in the Monday edition of USA Today, while Sirius is beginning a new national print and retail initiative called the "Sirius Guarantee" to drive home the two companies' positions.

Following the merger, Sirius said it expected that the traditional $12.95 USD monthly fee would likely be replaced by a more flexible structure allowing customers to select which programming they would like to receive.

Both sides hope to close the merger by the end of this year, pending regulatory approvals.