The British Government’s proposal for the completion of the radio industry’s digital migration by 2015 has been applauded by Frontier Silicon, which expects a three fold increase in sales of its digital radio chips as a result of the plan.
Frontier Silicon, which supplies the technology for the majority of digital radios sold in Britain, anticipates a three-fold business increase in annual shipments or sales over the next three years as a result of the proposals contained in a report released this week.
The report favours DAB as the preferred platform for future radio broadcasting in the UK and calls for a commitment from the car industry to facilitate digital switchover. In-car adaptors alone have increased the in-car digital radio market by 300% to date, so full standard installation of digital radios in cars will surge usage ahead even further.
Continuing technology investment over the years has allowed Frontier Silicon to contribute towards a reduction in the price of digital radios and the Government’s stipulation that the cost of the cheapest DAB radio falls below £20 is a challenge that Frontier Silicon says it “looks forward to meeting.”
The Digital Britain report also deals with a number of actions to ensure that the current Public Broadcasting system can survive past digital TV switchover in 2012, it supports the need to release spectrum as soon as possible and encourages media literacy.
In another recommendation of the report, by 2012 all of Britain will be able to access a broadband connection with a minimum speed of 2Mbps through a universal service commitment. It will be funded mostly from £200 million of public funding, but will be supplemented by wider mobile coverage obligations on mobile operators.
Commenting on Radio, the Digital Britain report says:
“Being a flexible medium, radio’s appeal to the listener is that it is
more than simply a stream of audio: it is an intimate, portable and ambient
medium; and it is a very personal medium: the pictures that it forms inside our
heads are different for every listener. To remain true to that breadth of appeal
to listeners, we argue that radio needs a future on its own, dedicated, digital
platform – DAB – alongside the many other digital paths over which it can be
carried…
“In economic terms the radio industry is relatively small. The total sector value
in the UK is £1.1bn a year. But radio is a disproportionately important part of the UK’s cultural landscape. More than 90% of the population consume in
excess of 1 billion listening hours a week. However, radio’s special position is by
no means assured in the future. Radio is not, and cannot be, immune to change…
“Digital offers a number of possibilities for radio to grow. The
delivery of new content and functionality, such as scrolling text, one-to-one
traffic information and listen again, can connect listeners and radio in new
ways, provide gateways to online businesses and open up new revenue streams
to the commercial market. A dedicated digital platform for radio will require greater investment, both
public and private, in new and existing infrastructures, digital-only content and
marketing.”
The full final report, released this week, can be found at the link below.
OfCom’s response to the report is also an interesting indicator of how the UK Regulator will go about implementing the report’s recommendations if they are accepted. It can be found at www.ofcom.org.uk/media/features/digfinal