XM Yanks Two Radios After FCC Ruling

By Geoff Duncan May 31, 2006

XM Satellite Radio has voluntarily halted sales of two satellite radio receivers following a ruling from the Federal Communications Commission that the signal strength of the units’ wireless transmission exceed regulatory limits and could potentially interfere with nearby FM radios and other devices using similar frequencies. According to XM, the suspensions do not involve any health or safety issues.

The two suspended devices are the Audiovox Xpress XMCK10 radio and Delphi’s XM SKYFi2. The FCC’s warning about the Audiovox unit went on sale in late 2005 (and the FCC’s warning to AudioVox was previously covered here in DT); the Delphi unit has been on sale for more than a year. No consumer recalls have been announced at this time, although analysts speculate pulling the units from sale may impact XM’s subscriber growth. XM was forecasting it would reach 9 million subscribers by the end of 2006, but revised its estimate to 8.5 million.

Speculation has the FCC examining additional XM units, including the Sports Caster and Roady XT, as well as examining receivers from rival Sirius. XM has said it is working proactively with unnamed radios to bring them in to compliance with FCC guidelines.

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