Boeing Co.'s (BA) largest U.S. radio program was terminated by the Defense Department because of rising costs, Bloomberg reported on its website Friday, citing a letter to Congress from the Pentagon's acting top weapons buyer.

"Based on growth in the unit procurement costs, I am terminating the program," Frank Kendall wrote in the letter, which was obtained by Bloomberg News.

The Defense Department will pursue a development program to buy less-powerful radios to "provide required military capability at less cost," Kendall wrote.

Boeing was developing the Joint Tactical Radio System's Ground Mobile Radios as part of a group that included Northrop Grumman Corp. (NOC), Rockwell Collins Inc. (COL), BAE Systems Plc (BA.LN) and Harris Corp. (HRS).

Full story at http://www.businessweek.com/news/2011-10-14/boeing-army-radio-program-terminated-by-pentagon-as-costs-rise.html

-Dow Jones Newswires; 212-416-2900

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