A new study from telecommunications research group The Carmel Group examines the proposed XM/Sirius merger, and concludes that it would result in "less service, less affordability, less diversity and less choice in content and hardware." The Carmel Group was retained by the NAB to review the merger and was instrumental in stopping the 2003 merger between EchoStar and DirecTV.

The study is titled "Higher Prices, Less Content and a Monopoly: Good For The Consumer?," with the subtitle "Its Harmful Impact On Consumers, Content Providers and Performing Artists." In the study, the Carmel Group refutes the arguments raised by Mel Karmazin of the benefits to consumers. The study states that there would be "less choice" in just about every aspect surrounding the companies, that "true supporters of this merger appear to be few in number" and adds that since "neither company is approaching dire financial straights," "this merger proposal amounts to corporate and financial greed by an impatient Sirius and XM."

The Carmel Group calls the satcasters' position that they compete with all forms of audio entertainment "ludicrous" and backs the idea that "the AM and FM broadcasters across the U.S. do not compete in the national market against the national satellite radio broadcasters."

The study also lists a number of "bad precedents" the merger would create, including the allowance of more "merger-to-monopolies" in other industries, such as cable TV and telephone providers. There is also a point-by-point rebuttal of the arguments XM and Sirius have made in favor of their merging, such as lower pricing, more choices for listeners and less confusion.

The Carmel Group wraps up the study with a "ping-pong chart" showing the benefits of competition, where XM and Sirius have played off each other to create more innovation and options for consumers. For example, XM released its first portable radio in December 2002, with Sirius releasing its own just five months later. Sirius announces its deal with the NFL in December 2003 and XM signs up Major League Baseball ten months later. Opie & Anthony join XM in August 2004 and Sirius announces its blockbuster deal with Howard Stern two months afterwards.

The entire, 11-page study can be found here in PDF format.

Sirius has issued a statement in response to the study, saying, "The NAB and its members say one thing when they try to block the Sirius-XM merger but something entirely different when David Rehr speaks to the National Press Club, Clear Channel speaks to its investors, or the HD Radio Alliance boasts about its advantages on its Web site. Broadcasters will do and say anything to block the merger because it will increase competition to terrestrial radio and all one needs to do to see the proof of that is to look at what broadcasters said about competition before the merger was announced."