AER POSITION ON DIGITAL SWITCHOVER

Brussels-based AER (the Association of European Radios) represents the interests of 11 national private radio associations in nine EU Member States and Switzerland, whose combined membership is approximately 4,500 private/commercial radio stations.

AER welcomes the initiative of the European Commission’s DG Information Society to carry out a study on “Digital Switchover in Broadcasting”. In this context, while recognising that plans for digital switch-over might encourage manufacturing confidence, AER wants to draw attention to a number of other important points regarding the introduction of digital radio in Europe.

Digital radio services are being launched in the European Union and other countries by using the DAB – Digital Audio Broadcasting – technology. Private radios have historically supported the testing and development of DAB in several European countries, being aware of the consumer content, new service and accessibility benefits and the potential commercial opportunities. However, for AER, there are still some points of uncertainty that need to be resolved before the successful launch of DAB transmissions at European level apart from digital switch-over.

The timing of the introduction of commercial digital radio services remains highly uncertain. The regulatory and legislative differences between European countries are tending to play havoc with the creation of a European critical digital radio mass, which will be important if consumers and manufacturers are to give their support.

European States are at different stages of digital radio development. Thus it is currently not realistic to decide on a “digital switchover” date for radio at the European level. However, this should not prevent the European Union and Member States from supporting aspects of licensing and regulatory policy that would contribute to digital radio’s success.

If the European commercial radio industry is to be able to afford the scale of investment required to make digital radio a success, then it will be important to ensure that the regulatory framework offers an environment that is conducive to the success of the medium.

What can European legislators and regulators do for the development of digital radio?

• Standards: AER believes that the Eureka 147 DAB system is the natural successor to FM. It is the only digital radio transmission method that has proved to work efficiently in Europe. Thus we believe European governments and institutions should recommend it as the common European standard for terrestrial digital radio
• Assistance in funding: Tax breaks, reductions in licence fees or shares in any public funding being considered by European Governments
• Licence periods: Digital radio licences will not reward shareholders for many years (some existing business plans for digital radio only stations assume “year 7” as the break-even point). Therefore, digital licences should be automatically rolled provided licence conditions are met or at least for long periods of time – say 15 years. Furthermore, for those private stations simulcasting FM/digital for several years, FM licences should be automatically renewed.
• Sufficient spectrum: All European private/commercial radio services should be able to at least consider joining the development of digital radio within a reasonable time-span – say over the next five years. Consideration should be given to the early release of additional spectrum where necessary should early digital radio services prove successful.
  The relevant international spectrum conference is in 2005 and, in AER’s view, digital radio licensing and regulatory arrangements need to be in place throughout Europe by then if commercial funded digital radio is to be a success.
• Sufficient capacity for the provision of additional data services: New services must include those that make the most of digital radio’s data capabilities especially given the considerable competition for provision of mobile data services which will come from services ranging from mobile telephony to digital television.

In AER’s view, these measures would encourage the take up of digital radio in Europe. Once they are in place and terrestrially transmitted digital radio is duly launched, then it will be for each Member State to consider the desirability, necessary circumstances and time-table for any switch-over. The circumstances might include: ·

• The number of sets owned by citizens
• The geographical coverage of terrestrially transmitted digital radio
• The availability of all analogue services via digital transmission in the region/area where switch-over is to take place
• The digital radio listening’s share of all radio listening, and
• The costs and ubiquity of listening to radio services by other means.

ENDS
18/05/01

NOTES: 1. The AER is a Europe-wide trade body representing the interests of private commercial radio operators in France, Germany, Greece, Italy, Portugal, The Netherlands, Spain, Sweden, Switzerland and the UK.