Yesterday, XM and Sirius, the two and only two satellite radio companies, announced their plans to merge the two outfits into one $13 billion dollar company. While the press release assures shareholders that it will be a win-win situation (XM Shareholders will receive 4.6 shares of SIRIUS for each share of XM they own) the press release answers very little of the questions that the typical consumer of satellite radio might have at this point.

Guess what: I’m a typical satellite radio consumer and I have some questions.

Three years ago, I decided that I really wanted to get a satellite radio. We were living in an area of the country that was, um, let’s say, lacking in terrestrial radio choices. In fact, they were terrible. The city we were in had weak signals and it was difficult to find nationally syndicated shows that we enjoyed listening to. So I went about learning everything I could about Sirius and XM Radio.

In the end, I chose XM over Sirius.

I liked the XM exclusive content like MLB (Sirius has NFL), Talk Radio, as well as XM Confidential and I liked the XM playlists for their music channels. At the time XM had a great selection of receivers than Sirius. However now both companies offer a greater number of high quality and visually pleasing receivers. Finally, the decision came down to usability. I found XM to be the most user friendly satellite radio company out there. I purchased a receiver and was up and running in a matter of minutes.

I enjoy my XM radio very, very much. I love listening to the Starbucks channel, Glen Beck, Theme Time Radio Hour with Bob Dylan, Deep Tracks, Buried Treasure with Tom Petty and The Message CCM channel. Every one of those programs and channels are exclusive to XM. Am I going to lose my favorite channels and shows because of this merger? I feel a little confident that I might get to keep my channels because it seems that XM will absorb Sirius. XM closed at $15.50 yesterday while Sirius closed at $3.93. XM has been that more financially sound of the two.

The press release did not speak to this but only created more questions.

Greater Programming and Content Choices — The combined company is committed to consumer choice, including offering consumers the ability to pick and choose the channels and content they want on a more a la carte basis.

Ug. This sounds like I’ll have to pick and choose my channels and content. It also sounds like there will be a price structure on a sliding scale instead of one flat fee. Satellite radio will be the new cable television. Great.

Accelerated Technological Innovation — The merger will enable the combined company to develop and introduce a wider range of lower cost, easy-to-use, and multi-functional devices through efficiencies in chip set and radio design and procurement. Such innovation is essential to remaining competitive in the consumer electronics-driven world of audio entertainment.

Will the player that I have now be able to connect with the new company or will I have to purchase a new, more expensive reciever with this new “chip set?” My cynical side already knows the answer to this question.

Enhanced Financial Performance — This transaction will enhance the long-term financial success of satellite radio by allowing the combined company to better manage its costs through sales and marketing and subscriber acquisition efficiencies, satellite fleet synergies, combined R&D and other benefits from economies of scale. Wall Street equit analysts have published estimates of the present value of cost synergies ranging from $3 billion to $7 billion.

More Competitive Audio Entertainment Provider — The combination of an enhanced programming lineup with improved technology, distribution and financials will better position satellite radio to compete for consumers’ attention and entertainment dollars against a host of products and services in the highly competitive and rapidly evolving audio entertainment marketplace. In addition to existing competition from free “over-the-air” AM and FM radio as well as iPods and mobile phone streaming, satellite radio will face new challenges from the rapid growth of HD Radio, Internet radio and next generation wireless technologies.

This is merely a positive short term analysis. Without competition economic growth will slow and customer care will wane. Look back at cable television. You can argue that cable tv faces opposition from movie theaters, DVD, satellite tv, as well as iPods, computers, and game consoles. Yet, rather than meet these challenges head on with great programing, awesome customer service, and revolutionary technology cable tv providers treat consumers with no respect. They act as electronic Don Corleones making us lose-lose offers that we can’t refuse. They control content and only allow us a peak at it with high costs and sliding price structures that change at their whim.

I hate having to chose channels and wade through my cable bill. I’m afraid that the fate of satellite radio will closely resemble this antiquated enterprise.

Of course all of this merger business will be in the hands of the SEC. They are not big fans of consolidation so the merger isn’t a lock by any stretch of the imagination.

I just hope that I won’t lose one of my favorite gadgets. If I do, I guess that I’ll just have an extra 13 dollars a month. That and a receiver that will stand as a monument to a great invention that was marred by corporate greed and bad ideas.