The ABC ended the service to the Pacific and remote parts of northern Australia yesterday.
It said the technology was outdated and it planned to beef up FM and online services.
Mr Xenophon said the ABC's management had completely underestimated the impact of the change which he described as incredibly stupid.
He said it would not only affect thousands of people in Australia's remote areas but perhaps hundreds of thousands of listeners throughout the region and he said Australia was shrinking away from its obligation as a good neighbour in the Pacific.
