XM says FCC contacted it about changes

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NEW YORK -- XM Satellite Radio Holdings Inc. on Thursday said it has been contacted by federal regulators about signal repeaters whose characteristics are different from plans XM had originally laid out.

XM, which earlier this week announced its intention to merge with rival Sirius Satellite Radio, said in a filing that it has had talks with FCC about the issue and that the issue may result in XM paying a penalty or making "adverse changes" to its network of repeaters, or transmission towers.

XM said it has filed for special authority to continue to operate the network, which helps boost its satellite signals in areas with poor coverage, such as big cities.
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