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Given that the US, with 10 times our population, couldn't support 2 standalone satellite services, there is no way Canada could do so. And after the merger in the US, Sirius and XM are equivalant to two different optional pay packages on a cable TV system.

Also, I wouldn't be surprised if the US parent was pressing for a merger so that they could dump half the Can-Con channels, and use them for channels that draw more listeners/subscribers. Or maybe just reduce the overall compression to allow better sound quality.
 
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