CRA Chairman’s urgent letter to PM over Digital Radio

The debate over digital radio policy has heated up, with the commercial radio industry responding angrily to the government’s apparent unwillingness to move on the issue.

Commercial Radio Australia Chairman, Rhys Holleran , wrote to Prime Minister John Howard on 29 June concerning the “urgent matter” of digital radio policy, saying his members are “very nervous” about what the government might do.

radioinfo understands there has been no response to that letter as yet.

At the same time, with the launch of a second digital radio showcase by John Laws last week, a number of high profile radio personalities around the country are believed to be increasing their interest in this issue.

As ministers and backbenchers go on the media campaign trail in the lead up to the election, they may find themselves being asked about the lack of progress on digital policy during radio interviews. Several backbenchers contacted by radioinfo said they would be worried about a backlash from the radio industry on this issue during an election campaign.

In his letter, obtained by radioinfo, Holleran says the industry has asked him to inform the Prime Minister that it is “extremely disappointed at the non-response from the government to broad policy proposals presented to government on digital radio.” He says the policy proposals have been discussed with ministers and the PM’s office over eightmonths.

Commercial radio broadcasters are asking the government to quickly implement a firm policy, that will see a transition to digital radio in Australia, based on the migration of incumbent broadcasters in the broadcasting services bands and a simulcast period of 20 years. CRA is proposing that no new entrants be allowed to the digital spectrum in the first 10 years of simulcast, and that there be regular reviews of this policy as digital take up progresses.

“What the industry is asking of the government is quite simple – equity of treatment with television in the transition to digital technology,” says Holleran’s letter.

The toughening of CRA’s stance appears to have been caused after a meeting between the Prime Minister’s staff and representatives of Commercial Radio, where other “totally unacceptable” policy positions were floated.

It is thought the government might once again send the digital radio issue back into the bureaucracy, where the newly merged regulator ACMA (Australian Commuinications and Media Authority) would spend time considering it further.

Holleran’s letter says what the CRA representatives heard in the meeting was “little more than motherhood statements designed to, in our view, delay making any decision on this matter. In fact, if released as the government’s public position, these statements put the future of the entire industry at risk.

Commercial radio broadcasters are understandably nervous about a policy which disadvantages them, after the significant investments they have made in the development and provision of high quality free to air radio services across Australia. CRA feels the government “appears unwilling to recognise this investment or the importance of free to air commercial radio in this country.”

“We do not understand this reluctance,” says Holleran.

The industry is seeking a definitive approach which will “provide assurance for both the government’s support for incumbent commercial radio broadcasters and some surety for the future of the radio industry.”

The Board of CRA has requested a meeting with the Prime Minister about the issue before commercial radio stations around the country “become active… in raising awareness of what appears to be government inaction in ensuring the future for local radio stations.”

The industry’s resolve appears strong. Commercial stations consider digital radio policy to be “the most important strategic issue” facing them at this time because it impacts on the current and future business prospects for every commercial station in the country.

If you want to hear what all the fuss is about, you could win the EVOKE-1 radio, the third generation DAB from PURE Digital. You could also win a bonus prize of a pair of Ultrasone studio headphones worth $365 from East Coast Audio.

All you have to do is pick the order in which stations will finish the Nielsen Media Research Survey Five in Sydney. The results are out on 22 June.

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