Satellite radio CEO faces hostile Senators

The merger of America’s two satellite radio providers is looking less likely following a hearing of the Senate’s antitrust sub-committee on Wednesday Australian time.

The chairman of the body set up to investigate the merger of XM and Sirius Satellite Radio was scathing in his attack of the proposed deal, saying it would create a “business colossus” leading to uncontrolled price increases for listeners.

Democrat Senator Herb Kohl of Wisconsin strongly indicated his feelings that the proposed deal effectively creates a monopoly in pay-radio, “What a business! I might quit this job to go into your business.”

Sirius CEO Mel Karmazin responded that there is already plenty of competition in the radio space, with traditional radio, podcasts and Internet radio all offering free alternatives for listeners.

He also promised not to raise prices for an unspecified period of time and perhaps offer the option to pay only for channels used rather than a complete package.

The issue of graphic programming content was also investigated, in particular sexually explicit programming such as Howard Stern‘s unrestrained breakfast show and “Playboy Radio.”

When pressed, Karmazin said subscription radio providers should not have to comply with indecency standards in place for traditional broadcasters.