by Kevin Walker
University of California, Berkeley
1991
Introduction
Radio is an important and popular medium, with about 80% of the U.S. population listening every day, on some 500 million radios, to 12,000 radio stations. Network radio revenue totals over $38 million a month, and advertising brings broadcasters almost $1 billion a month.1 But in the last few years, the quality of radio broadcasting, even FM stereo, has been eclipsed by digital consumer audio equipment. Since its introduction in 1985, the compact disc has already achieved 25% penetration into the consumer market, and it continues to grow, making vinyl records quickly obsolete.
The digital principle reaches beyond audio. Proponents say that soon, all forms of telecommunication will be based on the technology, including all aspects of transmitted messages: Aural and visual, numerical and alphabetical. Digital technology is not new. It is based on a broad theory called the General Theory of Information formulated in 1948 by Claude Shannon of Bell Laboratories. It enables analog data as we know it to be broken down into digital bits, which are easily manipulated by machines, with no distortion or loss in the process.
Digital Audio Broadcasting (DAB) is not speculation or a passing trend. While at the beginning of this year the technology appeared to be five or ten years away, now it is already emerging. Both the FCC and the broadcasting industry are already bracing for the impact of DAB, and it is proceeding at full speed. Even those opposed to it may find it hard to suppress.
What is Digital Broadcasting?
In order to understand the benefits of DAB, (or "digicasting", as one company calls it), a brief overview of current broadcasting is in order. Sound waves consist of "peaks and valleys" representing high and low frequencies (numbers of vibrations or cycles per second). When sound is introduced to a microphone, an electromagnetic wave is created that mirrors the actual sound wave. This can then be broadcast on a carrier wave or preserved on magnetic tape or vinyl. With digital technology, a machine measures the incoming sound wave tens of thousands of times each second, and assigns each measurement one of 64,000 wave positions. These measurements are then strung together and can be either laser-engraved on an optical disc or transmitted over the air. In this way, analog and digital systems are similar. But the main advantage of the digital technology is a self-correcting system. While both analog and digital signals contain minor flaws, the digital signal carries a coded "blueprint" of how the audio wave should look. At the receiving end, a computer chip reads both parts and compares them, adjusting any errors. The signal is sent as a series of zeroes and ones, so when it is received, those parts that are above an 0.5 threshold are read as ones and those below, as zeroes.
A present FM signal requires a bandwidth (amount of spectrum space) of about 15 kiloHertz (kHz). But the signal is subject to distortion from various sources, including other signals situated near it on the spectrum. The signal is also degraded as distance from the transmitter increases. In addition, some broadcasters alter their signals -- either equalizing soft and loud portions, or increasing the overall volume and stereo separation in order to attract casual listeners scanning the dial. Under present broadcasting laws, stations must restrict their signal's dynamic range, or difference between loud and soft sounds. Digital sources can accomodate a higher dynamic range -- more than 90 decibels compared with 70 for FM. They also have a greater range of frequencies -- up to 20,000 hertz, (similar to the human ear's range), compared to the present legal limit of 15,000 for FM radio. AM radio is even more limited than FM, except in broadcasting over long distances. Another benifit of DAB is that it eliminates interference and echoes from adjacent channels, since each signal has itw own distinct binary code.
Digital stations need far less power for their signal to reach over noise to the receiver. "A digital station with only 1,000 watts of power, with a power bill of $15 a month, would be able to cover the same area as an FM station transmitting at 50,000 watts, with a power bill of $6,000 a month."2 Digital stations must operate at higher frequencies than FM, but they can operate side-by-side without overlap or distortion. This means the technical quality gap between AM and FM stations would be eliminated were all stations to convert to digital, and each would be "on a level playing field" to enhance its programming. In addition, a single signal can carry several programs; European DAB broadcasters send out 16 programs on one signal, each with its own binary code. A chip in the receiver sorts the programs, and the listener may select any one by pushing a single button. The tuner doesn't display frequency numbers, like conventional radio, but the program types. One drawback to digital stations is that the signal fades suddenly at its coverage limit, compared the the gradual degradation of FM.
Also, with present technology, digital transmission requires a large chunk of the spectrum -- 1.4 megaHertz (MHz) compared with 15 kHz for FM -- and space is in short supply. This is why one of the keys to the technology's success is an effective data compression technique. Data compression is based on the way we hear sounds. Loud sounds tend to mask softer sounds of the same frequency, and hearing sensitivity is biased toward low-frequency sounds. Compression techniques eliminate or reduce the "bit count" of these unheard sounds. One method used by the present European system is to eliminate parts of the signal that cannot be heard because they are too close to other frequencies. This is similar to how FAX machines do not send information from blank or white areas of a page. Another method recently unveiled in the U.S. is faster, can accomodate both radio and TV signals, and allows signals to be utilized to the edge of the available band without interference. Telephone companies have used such compression techniques for years to increase the volume of calls on a digital line. Data compression is not without flaws, however: If compressed data is passed several times, anomalies can occur, and there can be slight (3-5 milisecond) delays in processing and encoding the signals. If several live sources can be combined with coded ones, however, the signals can be synchronized. Listeners cannot tell when signals have been compressed.
There are three main means of delivering DAB: by cable, by satellite, or a combination of satellite and terrestrial transmitters. Each has benefits and drawbacks, which are discussed below. Each section also identifies the companies that are developing the services.
Cable-Based Systems
All cable-based DAB systems are based on the same basic configuration, similar to the way cable television programming is delivered. The audio originates in a central studio facility, which transmits it by satellite to a local cable company, which delivers it to its constituent homes along a coaxial cable. On some systems, the existing cable is capable of carrying the additional audio (using video channel space), while on others, another line must be added to the cable, which splits into two once inside the customer's home, one wire for television and another for the audio. All present systems require a decoder separate from the existing television cable channel decoder, but it is possible that an integrated cable box may be produced. A drawback to cable-based DAB is that cable still does not reach all homes, and even if it did, the majority of radio listeners are in cars or other places outside the home.
An early prototype system was proposed in 1982, three years before compact discs were introduced to the mass market. The Digital Music Company proposed a service called The Home Music Store. Digitally encoded music was to be transmitted by satellite to cable systems and then into homes, but once inside the home, the signal would be converted to analog. Five channels would offer various music styles. Two fully digital channels were to be offered, which would allow subscribers to record record albums at 20-60% less than retail price. Subscribers would pay an $8-10 monthly subscription fee, and call a toll-free number to order the albums for recording. Needless to say, the service, while ambitious, didn't get far due to music industry copyright issues and low demand -- customers either envisioned having to buy sophisticated recording equipment or thought it was just too much of a hassle. At the time, few people even knew the benefits of digital technology, and it would be another three years before the compact disc sparked such an interest. Similar proposals emerged offering sub-digital signals, with similar results.
CD/18
After the CD gave the "digital revolution" its initial spark in the consumer marketplace, research and development on other digital technologies rushed forward. One of the first fully-digital, cable-based DAB systems was unveiled in early 1989 by International Cablecasting Technologies (ICT). Called CD/18, it would use existing cable TV lines and an additional audio decoder. The monthly fee was suggested at about $6, with the tuner to be sold by hi-fi retailers for about $200. The tuner could also be sold to the cable operator at $50-60, then sold or rented to customers. Programming would consist of 18 channels of no-talk, nonstop CD music, with an additional one for "pay per play" selections, like the Home Music Store's proposal. CD/18 would also have a toll-free phone line for music information, or an optional connection to the customer's television for an on-screen display. Unlike the Music Store, CD/18 would carry a digital, CD-quality signal all the way into the home. It also offers 64 data channels for personal computers, enabling customers to use various data-retrieval, electronic mail and conferencing services without using telephone lines -- users could do remote computing without tying up the phone lines. The computer monitor could also used to retrieve music information, instead of the TV. On top of all this is the option of an infrared remote control. ICT skirted the digital recording controversy by building the tuner so that anything recorded -- even on a DAT recorder -- would be converted to analog. Despite this, CD/18 has gained the support of the country's largest cable system, TCI, with 4 million homes. It plans to launch in the next few months.
Digital Cable Radio
DCR plans to launch very soon, with two cost options: 16 formats and 12 cable services for $10-12 a month, or 8 formats for $7 a month. The tuners would cost cable operators about $65 each, and DCR suggests that they provide them free to customers. This system relies on a split cable -- one to the TV and one to the stereo. In ongoing tests in Sacramento and Deland, Florida, DCR has found that the most likely users are audiophiles: 33% of susbscribers owned compact discs, compared to 25% of the general population. But among subscribers, usage was high. The system is already available on a few systems, but it has been forced to play only singles, until an agreement can be reached with record companies. This illustrates a major hindrance to all DAB systems, and it is discussed later.
DRL
Digital Radio Labs plans 20 formats, along with 6 cable services. It is competitively priced at about $7.50 a month, and the tuner costs the cable operator about $85 each. In marketing research, DRL found that 61% of cable subscribers would pay $7.50 for the service, and has been testing in the Los Angeles area.
Digital Planet
This CD-quality service turned on its satellite September 7 in Westchester, CA, and has expanded to two other California cities, with a national rollout planned for early next year. It costs $8 a month and offers 26 channels, with 91planned for next year. 16 of the current channels are commercial-free, six are cable simulcasts and four are radio simulcasts, one of a London station.
The trouble with the above services is that they are incompatible with eachother. The decision of which to choose is made not by the FCC or broadcasters, but by local cable operators. Economic factors most likely govern such a decision.
Satellite-Based Systems
RSC
Radio Satellite Corp. filed a proposal with the FCC in May for a system designed to send 10 national channels of digital broadcasting by satellite. Since it is designed to operate on the same frequencies currently allotted to satellite paging services, data transmissions and car telephone service, the RSC system could be operational long before other systems that use terrestrial transmitters. RSC has not requested any spectrum space because it plans to lease it from American Mobile Satellite Corp., a company already licensed to deliver satellite service to mobile receivers. This system is designed exclusively for autos, and RSC is developing an all-in-one radio, mobile phone, telephone pager and data transmitter/receiver. It expects the unit to arrive in consumer electronics stores in time for Christmas, 1993. The antenna is about 3.5 inches in diameter and is mounted on a car's roof. RSC's way of skirting FCC spectrum allocation may create problems for them. While the commission's approval of AMSC's spectrum request stated that "they would allow any services as long as communications are between a satellite and a car,"3 radio stations may view RSC as competition rather than a business opportunity. The system had no problem soliciting the support of broadcasters, however. Response was overwhelming to an ad placed in an NAB publication (the NAB opposes the system) asking for ten stations to become part of a network. RSC's president said, "Some are extremely excited about the possibilities and others view us as the biggest possible threat."4 Another drawback is the limitation to cars. Although RSC has found a way to reach people out of their homes, in order to expand into homes, RSC would need a more powerful satellite and would have to request more spectrum -- spectrum that is wanted by other DAB systems and other technologies. Also, because mobile communications channels are subject to some interference, the quality is slightly less than that of CDs.
Integrated Systems
The drawback to this system is that while powerful, the Kopernikus satellite is not strong enough to transmit very much, very far. Even though there are only some 50,000 potential listeners in Europe, to receive the DAB signal requires a three-foot satellite dish antenna. A more powerful satellite would proportionately shrink the required dish size, (Europe's TV-Sat 2 requires only a one-foot satellite), and a much more powerful one would be required to serve an area as large as the U.S. Still, the system works well, and a single satellite dish can serve an entire apartment building. The quality of the broadcast matches CD's, and even surpasses them in live broadcasts.
This Summer, Eureka-147 was tested in Canada. In one test, 18 Toronto stations provided programming, which was sent to a digital studio, where the signal was split in two -- one went to an analog FM band and the other to a digital channel set up on the UHF band. Another test involved a steel-structured building. An AM signal was inaudible from inside, but the digital one came through clearly. The Canadian Association of Broadcasters (CAB) was satisfied. Its president said, "The equipment has more than met our expectations delivering technical quality.É At this point, it is the only technology of that caliber that is available anywhere in the world.É The Europeans are at least two to three years ahead of anybody else."5 In later tests in Britain, however, a BBC engineer revealed that the service requires virtual line-of-sight conditions and is very dependent on local clutter.
This is still the most advanced system thus far, but a few U.S. manufacturers believe their technology has the potential to surpass Eureka-147.
CD Radio
Satellite CD Radio, Inc. of Washington proposes a CD-quality system of 100 channels, with national ones delivered by satellite and local ones by terrestrial transmitters. Two attractive features of this system are its sound coding method created by Dolby Laboratories, whose noise-reduction and stereo separation systems are widely used; and a proposed channel dedicated to the Emergency Broadcasting Service. Also, CD Radio offers 34 terrestrial channels to local broadcasters. Its modulation system is simpler than that of Eureka, allowing for an easier transition by analog broadcasters, and it would allow substantial flexibility to stations in choosing their spectrum location and coverage. CD Radio filed a petition with the FCC asking for 70 MHz of spectrum to launch the system. The company recognizes that the available spectrum cannot acccomodate competing systems, and has invited other systems to join in a consortium. The first demonstrations of the system are due to begin early next year.
Reactions to the system have run the gamut. The FCC has indicated that it supports the Satellite CD Radio system, and Strother Communications (below) acknowledged that Satellite CD would be a good complement to its own system. A radio station said the system would be a good opportunity for minority broadcasters. But others such as the Association for Broadcast Engineering Standards attacked the proposal for not enough emphasis on localism, and the NAB doubted that the system would be adopted given the worldwide availablility of the Eureka system.
SCI
Strother Communications, Inc. submitted a full-scale proposal to the FCC in July, including proposed spectrum options for both terrestrial and satellite service, licensing procedures for new or converting analog stations, a cost analysis for operating a DAB station, an analysis of the benefits to the public, and a list of services that could be established on the system. Strother lays out seven different spectrum options, all currently allocated for government or commercial use; one is in the UHF TV area, and another would require the NTIA to release some spectrum it owns. Its system is based on the European Eureka-147 system, and has requested a 1-year experimental license to test a "more sophisticated model" of the system in the U.S. The satellite system would be used for national services, and terrestrial transmitters for local services, with a total of 192 channels spread over 40 MHz. Strother proposes dividing the U.S. into special DAB markets, each assigned common transmission facilities and 4 MHz of spectrum. This would be sufficient to accomodate all existing AM and FM stations, and proposed special services including: A government channel, comparable to C-SPAN but on a local scale; local weather and commuter's channels and a national weather channel; services for the blind, including receivers able to print out information in Braille; classified and employment listing channels; local sports; and public access channels, as on cable-TV systems. All would likely be supported by advertising. Notably absent is commercially-supported entertainment programming. This is to lessen the system's role as a competitor to existing broadcasters, although undoubtedly both systems would be affected. The analog and digital stations would exist side-by-side until a certain level of DAB receiver penetration is reached -- 65% is proposed -- then a two-year transition period would enable analog stations to convert. A "window filing" would determine allocation of existing broadcasters, by "first come/first service" as with current FM rules. With stations sharing transmitters, towers and antennas, operating costs for each station would be drastically lower. In addition to system tests, Strother also plans to organize consumer focus groups to assess listener reaction. This system is funded by private parties, and Strother is soliciting broadcasters as partners.
It should be noted that two weeks after Strother's proposal was filed, the FCC agreed to take up a notice of inquiry about DAB.
One other system that is under development is in in direct opposition to the European system, and has a particulatry American slant. It would enable DAB wo operate within the existing FM spectrum. Not all AM and FM stations could initially be accomodated on the system, so TV channels 2-6 would be shared during the transition. When the technology takes hold, the converted FM stations would be turned off, and those on the TV bands would move back to the FM band. Listeners would be unaware of the moves. The essential difference between this and the European system is that this one would use a coding system claimed to be twice as good as Eureka's, which would also allow the use of the telephone companies' Integrated Services Digital Networks (ISDN), to send digital information over phone lines. Digital signals could be intertwined with FM signals in two ways: By spacing them in between FM bands, or by a technique called "Power Multiplexing" to place digital signals "under" FM ones, since they require less power. Current FM receivers use a "capture effect" to receive only stronger signals, but new ones could be designed to recover the digital signal as well. This system means no new spectrum would be required, and could allow current stations to transmit in both analog and digital, retaining control over both.
Other Applications of DAB
One area that digital broadcasting is useful in is emergency broadcasting. After California's Emergency Broadcast System failed during the 1989 earthquake, the Emergency Digital Information System was developed. It links local governments to the news media by inexpensive digital equipment, and can survive emergencies which sever underground cables or block telephone networks. The system is currently being tested in the Bay Area and Sacramento Valley. Three stations in the area have installed the service, and the Associated Press and a traffic reporting service have expressed interest. The National Weather Service has successfully used the system. The Emergency Broadcast System also broke down during the summer's disastrous fire in Santa Barbara and key emergency information had to be relayed to the public by reporters at a radio station instead of local government officials.
The federal government is also interested in putting DAB to its use. The Office of Space Commerce, a division of the Commerce Department, is looking at developing a satellite-based system to broadcast the Voice of America around the world. It has shown its support for a joint venture between Satellite CD Radio and a Japanese firm, Techno-Venture Co., called Afrispace. This will be the world's first international, commercial digital system, delivering CD-quality news, health information, education and "special" channels to the Mideast and Africa, beginning in 1993. The NAB has taken issue with the government's apparent stress on satellite-delivered systems when it claims impartiality.
The Broadcasting Industry
The broadcasting community is split over the issue of DAB. The National Association of Broadcasters passed a resolution in June stating its opposition to a solely satellite-based system, citing two reasons. First, it believed that a satellite system would not be run by current broadcasters, so would be a potential competitor to broadcasters. Also, it favored a land-based system to preserve the localism of broadcasting. (A satellite system would presumably be national, as it wouldn't be economical to launch a satellite for use in only one city or region.) The NAB expressed interest in an all-terrestrial system, provided that its present constituent broadcasters could easily convert to digital. In general, some broadcasters are wary that DAB poses a threat to their industry. They prefer to leave the system as it is -- a safe policy that requires no new capital investment.
But other broadcasters embrace the technology simply because it will be a competitor -- to inferior analog broadcasting. Instead of stifling DAB, they feel a need to adopt it out of necessity: analog radio won't be competitive in sound quality with digital broadcasters, tapes, compact discs and cable music services. There are many incentives for broadcasters to switch to digital, the main one being that they can operate on far less power to cover the same area.
The NAB created a "DAB task force" in July to advise the association and recommend possible implementation strategies. Its responsibilities also include studying legal, political and technical aspects, monitoring international progress, raising "awareness of the broadcasting industry on the challenges and opportunities of DAB", and promoting industry consensus. Naturally, the task force is made up of broadcasters and retains the NAB perspective. Alan Box, chairman of the task force, said, "I think broadcasting has to be local. I think it would be terrific to be digital, but I don't think it needs to be satellite to be digital." He said national radio services are not needed.6 But a shift in NAB strategy may be detected in their renaming of the task force as the "Digital Audio and Satellite Sound Broadcasting Task Force." Since its creation the task force has authorized a spectrum analysis to determine how much would be needed to accomodate existing stations, and has adopted an engineering advisory group.
Among broadcasters, a few have been particularly vocal in their support of DAB. National Public Radio, for example, would like a certain amount of DAB spectrum specifically allotted for public broadcasting. At a recent Senate hearing, NPR's president, Douglas Bennett, asked that more than 20% of DAB spectrum be used for noncommercial use. He said, "Existing spectrum allocations are not adequate to provide a nationwide public radio system. This set-aside would make up for this deficiency, [and] allow public radio to expand its services to underserved audiencesÉ"7
At its October convention, the NAB reiterated its commitment to localism. One broadcaster warned against costly new satellite systems, saying that since the Eureka developers have "correctly identified every optimum feature of a digital system, is there any point in waiting for someone to develop another system or should we just get on with the next generation of radio?"8 If any convention-goers had doubts about DAB's emergence, they had only to go the exhibit hall, where a wealth of digital compressors, modulators and computer control systems were on display. Broadcast engineers have created their own group, the Digital Radio Commitee, to exchange information on the technology. Currently they are examining the feasibility of a system compatible with existing FM, using the same band. Many of the engineers on the commitee are also affiliated with the NAB's task force, and the two groups have been working together.
Another group, the ad-hoc "Subgroup B" of the Industry Advisory Comitee, which includes the NAB, NPR, Strother, NASA, RSC, and Satellite CD radio. It convened at the NAB's October conference and discussed three DAB scenarios: Integrated satellite and terrestrial ; purely terrestrial; and an international satellite system, possibly using the same satellites as a domestic system.
Meanwhile, some broadcasters are openly accepting the technology even before the details are worked out. The CBS and Capital Cities/ABC radio networks agreed to transmit programming in CD-quality 20 kHz audio to their affiliate stations, which together number more than 3,000. This would be the first link in the digital chain, in preparation for when DAB is ready to go from stations to customers. The hardware, developed by Scientific Atlanta, is compatible with the present system and can accomodate the compression system used by Eureka-147.
Individual stations are preparing for the transition to DAB by converting to CD players and DAT machines, dubbing commericals directly onto digital discs, using mass-storage automation systems, and in some cases, all-digital studios. The introduction of erasable optical discs, expected in the next few years, will speed the transition. Digital signal compression and stereo generation are the next phases. The biggest transition will be administrative -- the sharing of transmitters and antenna systems.
Equipment Manufacturers
Only one company worldwide, Telefunken in Germany, has begun selling digital receivers, retailing for about $1,000. Others are waiting for some of the unknowns to disappear. Manufacturers of transmitters for radio stations are not optimistic. One sales manager said that "because DAB would require a very limited number of transmitters for stations there would be no volume of sales." Another conceded that "there are also certainly things done very well in this industry that are analog."9 In short, both receiever and transmitter manufacturers are waiting for further development, and at the least, spectrum assignments, before they make a commitment. All agree that the technology is feasible to make.
The Music Industry
The recording industry has been strangely silent concerning DAB so far. But without a doubt, once the technology achieves as much visibility as DAT, there are sure to be voices raised. For, potentially, a digital audio tape recorder could be attatched to a DAB tuner, and perfect copies could be made of the music. A brief examination of the DAT controversy is in order at this point.
In the most visible manifestation of the controversy, songwriter Sammy Kahn and four music publishers filed suit against Sony, who began selling the first DAT machines in the U.S. Sony introduced the machines with a feature that allows them to record CD's, but the tapes cannot be copied. The machines were approved by foreign manufacturers, the electronics industry and the Recording Industry Association of America in an international agreement last year. Despite this, the plaintiffs claimed that a royalty system, possibly a fee added to the cost of blank tapes, should be formulated. There is a precedent for the case, and it was set in a case against Sony, when it brought the video recorder to American consumers. The Supreme Court ruled that consumers had the right to tape copyrighted material off the air for their own private use. Sony has said that digital recorders are fundamentally the same as analog ones. The music industry opposes DAT because of its "good-as-original" quality. The DAT case is still pending, and the controversy has hurt the sales of DAT machines.
While music publishers have worked out royalty specifications with broadcasters, it remains to be seen whether the advent of DAB will cause such a fight as with DAT. If Sony's copyrighting system is insufficient in the minds of some in the music industry, a new system may have to be developed for DAB receivers to prevent a similar court battle.
Policy Implications
While the government has, in the past, showed a willingness to "let the market decide" which new technologies or systems are to be adopted, the international aspects of DAB, like high-definition television, make government involvement in the national interest. DAB development closely resembles that of HDTV. As with HDTV, the most important and immediate concerns are in the initial implementation. As one radio consultant said, "The challenge posed by digital audio is how to bring this 'best-yet' radio to the public, tap the vast potential of DAB as an advertising and entertainment medium and a stimulus to the audio receiver marketplace, while protecting the existing investments in AM and FM stations and networks."10
The most important issue to most players is, which standard should be adopted? Should the U.S. adopt the European standard, making worldwide broadcasts possible, or, as with HDTV, should the U.S. develop its own standard to compete with Europe and Japan? This is the main issue to be addressed at the World Administrative RAcio Conference (WARC) in 1992, but the U.S. must have a proposal going into the conference. This means working with all parties involved, plus Canada, who will be affected by any U.S. spectrum allocations.
The issue at the top of broadcasters' minds is their continuing need to serve the public interest. The NAB believes that localism is key in this area, and therefore opposes a national, satellite-based system. But the public interest controversy depends on whether the economic impact on local stations would be outweighed by the benefits of such a national system. A precedent for this issue was set during deliberations over HDTV. As commission Chairman Alfred Sikes said, the FCC "established a clear direction É not to preclude satellite delivery of high-definition television.É As I look at digital audio broadcasting, that is clearly one of the key considerations in my mind."11
One issue that is providing fuel for DAB proponents is America's trade imbalance, and the desire to keep America a technology leader.
Monopoly issues must be addressed. CD Radio, for example, is half owned by a communications consulting business and half by a French entrepreneur. Its board of directors includes a media attourney, an owner of several TV and radio stations, and a developer of DAB receivers. RSC's stockholders include Hughes Communications and LIN Broadcasting. Other consortiums are similarly organized, and many are willing to join with one another.
There are many economic considerations. As for research and development, enough interest has been generated in the technology that DAB developers have had little problem finding sponsors. Implementation is another story. CD Radio, for one, has proposed financing its system by leveraging upon pre-sales contracts with customers.
Concerning regulation, there are two broad areas in which it would apply. First, regarding the impact on existing services, the regulatory question is, Would existing broadcasters be provided a transition period to select from DAB providers? Second, regarding spectrum usage, the issues are: Should DAB services be provided free of charge to listeners; and should broadcast ownership regulations apply to DAB services?
FCC Action
The first formal FCC action taken was a few months after DAB system proposals had been filed with the commission. It formally adopted the issue at its August 1st meeting, and issued a Notice of Inquiry and request for guidance from broadcasters and others on what spectrum could be used and whether a terrestrial or satellite system would best serve the needs of the public. Issues to be addressed included: "Terrestrial versus satellite digital transmission; DAB's potential impact on the current radio service and ways to minimize negative effects; spectrum allocation; licensing procedures; ownership restrictions; and the distribution of facilities among states and communities."12 The commission's ultimate goal is a full series of implementation plans, such as the one submitted by Strother Communications. The commission has indicated that it may give spectrum preference to broadcasters or service providers that have already experimented with DAB. This is called "pioneer preference" and generally applies to all new communications technologies. Judging from comments the FCC received about pioneer preference, it appears that the vast majority of broadcasters accept it.13
The commission released a second Notice of Inquiry in late September offering three different spetrum options. One is in the area of UHF channels 57-66, spectrum that is also wanted for HDTV. (A terrestrial HDTV system is due to be selected in 1993.) This reverses a stand taken last year by the commission, when it explicitly stated that the UHF area was to remain untouched in order to accomodate HDTV. The second area is currently used for aeronautical telemetry, including missile testing and control systems. The third is allocated for industrial, scientific and microwave applications.
Among those responding to the inquiries was an ac-hoc group called the Radio Operators Caucus, "an informal group of radio licensees operating in large markets throughout the United States". This group urged the FCC to proceed with caution on the technology, and said digital radio should not be regarded as a new service, but a new mode of transmission for an existing service. It was the first time the group had spoken out on an issue, it said, and cited as a reason, "they (the FCC proposals) all result in a major restructuring of the radio broadcasting industry."14
While the Notices of Inquiry are minimal, the fact that the FCC is moving on the issue indicates that it seeks to avoid regulatory foot-dragging. The wording indicates that the commission realizes the weight of DAB, refering to it as a "potentially important new medium." Also, in specifically seeking information on accomodating existing broadcasters, the commission realizes that DAB will benefit the sagging broadcasting industry, especially AM. The FCC is also asking, in the inquiry, for ideas on regulating DAB. It realizes that localism may have to be sacrificed somewhat in order to create a "hybrid" classification for the service. This approach would work better in an environment of deregulation. Congress, however, may take issue with this approach, as it has, in the past, strongly believed in localism and the public interest. The sparseness of the inquiries show that the agency is as yet unclear on the path it wants to take with DAB, but that it does want to retain regulatory control, whatever approach is adopted.
Despite its past commitment to localism, the FCC realizes the benefits of satellite-delivered DAB. Commissioner James Quello, one of the agency's strongest proponents of localism, has said that since small communities might not be able to support a local all-news station, "an all-news format offered to several small communities in a region or nationally is likely to be viable."15 On the technical side, the commission's Office of Engineering and Technology has just begun to analyze spectrum options.
Congress
So far, Congress has taken a "no-sides" stance on the issue. The main bill affecting DAB is the Emerging Telecommunications and Technologies Act, which proposes a transfer of up to 200 MHz of spectrum currently allocated to the government, for new technologies such as DAB. On August 2, there was a vigorous debate in the Senate over the bill. (The House has a companion bill.) An administrator from the NTIA said there were no vacant government frequencies, and "the government should not be asked to release free spectrum to entrepreneurs who will make millions in profits while taxpayers foot the bills for agencies to move their radio systems to other frequencies." She said the Bush administration objects to a mandatory shift of spectrum "before the tools are in place" to reallocate. A Pentagon spokesman said that vacating a 175 MHz band would cost over $20 billion, and "displacing a single radar system would cost $350-550 million". The bill will be acted upon by the Senate Commitee on Science, Commerce and Transportation before consideration by the Senate, then it faces reconcilliation with the House bill if passed.16
Other governmental offices have shown no official opinion on the matter . In fact, one Commerce Department official was quite voiciferous about his department's non-commitment. He told broadcasters:
What About Improving Existing Radio?
Even the most ardent supporters of DAB don't expect it to be in wide use until early in the next century. There are present efforts underway to improve analog AM and FM. One proposed change is an expansion of the AM band, to 1705 kHz. This could reduce interference. Another way to accompish this is through improved antenna design, and work is progressing in this area. The FCC would like AM to be "a full-time service with stereo, with a competitive quality sound equivalent to FM, extensive day and night coverage, interference free, using simple antennas."18 For FM, a major change forthcoming is Radio Data Service (RDS). This would allow stations to send alphanumeric data with their signal, to be displayed on a receiver with an LCD module. The technology is already in place in Europe. Since FCC approval is not required, it won't be long before it catches on in the U.S.
Some broadcasters don't understant the irony of the FCC's wanting to improve a system they feel is destined to become extinct, but most accept the present agenda for changes.
Future Plans
In the immediate future, trade and industry groups continue to debate the issue at conventions and meetings. The NAB will have a board meeting in January, and its annual convention is in April.
The major event all parties are looking forward to is WARC in Spain in 1992. The agenda there includes a scheduled allocation of a worldwide DAB satellite band. The FCC, NAB and virtually all other players are holding off on policy making and implementation until WARC. It's expected that directly after the conference, design and implementation will proceed at full speed, and many manufacturers expect to introduce DAB receivers in 1993. If worldwide consensus is reached at WARC, Europe and Canada will probably implement the Eureka system in 1993 and 1994. In the U.S., concerns about localism and other factors will probably delay an adoption of FCC rules until 1995 or 1996, with a system to begin operating the following year. But gauging from the speed at which events have been moving, a sooner launch date would not be a surprise. As DAB develops and becomes more visible (audible, actually), U.S. consumers should not need much prompting. As one broadcaster said, "We're not going to have to generate excitementÉ this is going to generate its own excitement. All you have to do is put on the headphones and listen."
1. Figures for August, 1990, from Broadcasting, Oct. 1, 1990, p. 46(2).
2. Pollack, Andrew. "Next, Digital Radio For a Superior Sound." New York Times, July 11, 1990, p. D1(3).
3. RSC president Gary K. Noreen quoted in "DAB: The Next Generation of Radio Broadcasting?" Broadcasting, Jun. 4, 1990, p. 63(2).
4. Gary K. Noreen quoted in Taylor, Charles. "Stations Seek Satellite Service." Radio World, Oct. 24, 1990, p. 23(1).
5. Michel Tremblay interviewed in "CAB's Tremblay Discusses DAB." Radio World, Aug. 8, 1990, p. 7(1).
6. Quoted in "DAB: Radio's Salvation or Destruction?" Broadcasting, Jul. 16, 1990, p. 79(1).
7. Quoted in "Battle for Spectrum Begins." Radio World, Sept. 12, 1990, p. 1(1).
8. Steven Edwards of Canada's Rogers Communications, quoted in "DAB Draws Radio Show Crowd." Radio World, Oct. 10, 1990, p. 7(1).
9. Jorgen Jensen of Nautel and Bill Hoelzel quoted in Carter, Alan. "Manufacturers Following DAB." Radio World, p. 3(1).
10. Rick Sklar, president of Sklar Communications, quoted in "DAB: The Next Generation of Radio Broadcasting?" Broadcasting, Jun. 4, 1990, p. 62(1).
11. Quoted in "FCC Addresses Digital Audio Broadcasting Issue." Broadcasting, Aug. 6, 1990, p. 30(1).
12. Taylor, Charles. "Inquiry Into Digital Radio Is Launched." Radio World, Aug. 22, 1990, p. 1(1).
13. Taylor, Charles. "Filings Support Pioneer Plan." Radio World, Aug. 8, 1990, p. 9(1).
14. Taylor, Charles. "DAB NOI Prompts Joint Filing." Radio World, Nov. 7, 1990, p. 7(1).
15. Quoted in "Quello Sees Some Pros in National or Regional DAB." Broadcasting, Oct. 1, 1990, p. 61(2).
16. Janice Obuchowski and Lt. Gen. James Cassity, Jr. paraphrased in "Battle for Spectrum Begins." Radio World, Sept. 12, 1990, p. 1(1).
17. Assistant Secretary Designate Wayne Berman, quoted in "Open Mind Policy is Stressed for NAB." Radio World, Oct. 24, 1990, p. 19(1).
18. Larry Eads, chief of the FCC's Audio Service Division, quoted in "Much Ahead For AM, FM." Broadcasting, Oct. 1, 1990, p. 46(1).