Sirius XM Files For Permission To Raise Subscription Rates
January 25, 2011

Sirius XM has asked the FCC in a filing for permission for the ability to raise its basic subscription rate, following a price freeze that was negotiated as part of the satcaster merger in 2008. Sirius XM would then be able to raise the basic rate from its current price of $12.95/month.

According to Bloomberg, Sirius XM told the FCC in a January 20 filing that the Commission shouldn't extend the price freeze, but it also didn't specifically say in the filing that it wants to increase its rates.

As a condition of the merger, Sirius XM agreed to keep its basic subscription price for three years after the merger's completion, which would be July 28 of this year. The satcaster asked the FCC in its filing to take "no steps" to extend or modify this plan. Sirius XM said in its filing that it currently faces a "robustly competitive" audio market, between terrestrial and Internet radio options, as well as increasing web connectivity in vehicles.

Bloomberg reports that the FCC is reviewing the request.




 
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Alicia Tyler, PD
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