Radio Deal Could Face Technical Difficulties; XM, Sirius Systems Already Strained

To hear officials of XM and Sirius satellite radio tell it, a merger of their companies would make almost everything bigger and better.

"The merger will allow XM to provide more programming choices for our subscribers," said Nate Davis, president and chief operating officer of District-based XM Satellite Radio Holdings. "We will be able to add popular content from Sirius to the XM lineup."

Instead of offering a one-price, all-or-nothing lineup for $12.95 a month -- as both companies do now -- they would offer smaller packages at a lower price and bigger packages at a higher price, company executives said. And shareholders would benefit, they said, because a merger would result in savings by eliminating duplications in programming, marketing and other operations. …