He listed AM/FM analog radio, Internet Radio, HD Radio, streaming music to mobile phone and even equipment to use MP3 players in cars as competition. It was his belief that the market here is for digital audio and that how it is delivered doesn't really matter; its not just "Satellite Radio" to think about anymore.
The company's 1997 license with the FCC forbids a merger with XM, but Karmazin addressed the issue by saying, "the 1997 market should not guide policy decisions in 2007". He also promised that prices would stay the same so that customers who want the same or similar services from the combined company would pay the same price. Karmazin also revealed plans to provide packages for less than the current offerings.
Also, a very important promise made is that the new company will broadcast in both the XM and Sirius formats for the foreseeable future, making no receivers obsolete.
Source:
Ars Technica