Suit against XM Radio dropped

The National Assn. of Broadcasters has withdrawn its petition to the U.S. Federal Communications Commission to stop XM Satellite Radio Holdings Inc. from providing local traffic and weather channels, a spokesman for the trade group said Tuesday.

XM Radio had announced in January that it would launch an instant traffic and weather service, prompting established U.S. radio broadcasters to denounce the move as a “back-door attempt” to skirt regulations.

XM Radio rolled out the traffic and weather channels March 1 in 15 major cities, in a move similar to one by New York-based rival Sirius Satellite Radio Inc. XM Radio says on its website that it now provides the channels in 21 major U.S. metropolitan markets in addition to several interstate corridors nationwide.

“This is a complete vindication of our position that XM has complied and continues to comply with FCC rules,” the company said in a statement, referring to the NAB’s withdrawal of its petition.

In the NAB’s motion to dismiss its petition, the trade group said: “NAB will continue to monitor the evolution of satellite radio and we intend to bring the matter before [the FCC] when a fuller picture has developed.”