FCC likes Sirius-XM plan

Federal Communications Commission Chairman Kevin Martin said he is "pleased" with a plan by Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc. to offer "a la carte" programming if they are allowed to merge.

"It's always good when consumers have more choice," Martin said Tuesday after an FCC meeting in Washington. He also repeated that the merger plan faces a "high hurdle."

Sirius and XM, the only two satellite radio companies in the United States, said last month they will offer programming packages, some at lower prices than their monthly fees of $12.95 for more than 100 channels. The offer addressed Martin's criticism that the companies force customers to pay for channels they don't want.

"This is a favorable development," said Maurice McKenzie, an analyst at Signal Hill Capital in Baltimore who rates both stocks "buy" and doesn't own them. "It's not enough, in our opinion, to get the merger done."

Shares of Sirius gained 10 cents, or 3.4 percent, to $3.01 in Nasdaq Stock Market trading Tuesday. They have lost 19 percent since Feb. 19, when Sirius offered 4.6 shares of its common stock for each XM share. XM, based in Washington, gained 51 cents, or 4.7 percent, to $11.43 Tuesday.

Martin said he is "always pleased" when companies offer more choice to customers. He hasn't read the details of XM's and Sirius's programming offer, he said.

Martin didn't specify when he expects the FCC to make a final decision on New York-based Sirius' proposed purchase of XM. The companies have said they expect to close the deal by year-end.

Among the "a la carte" options presented by the companies on July 23 was an offer of 50 channels for $6.99 a month.

The companies also said they would offer a family-friendly package for $11.95 a month.

Martin has been critical of the adult content aired by media companies, including cable-television providers, during times when children are likely to be watching or listening.