In her speech to this week’s Broadcasting Summit conference in Sydney, CRA Chief Executive Joan Warner has updated delegates on the digital radio broadcasting trials.

She covered: Industry developments; the digital broadcasting trials;
How digital radio will change the communications environment; What are the regulation and legislation issues facing radio broadcasters; Can the radio industry sustain new broadcasters and Future challenges and opportunities. She said:

As you know, we have with ABC and SBS, put into place what we believe to be the most comprehensive trial of digital radio ever conducted in the world.

As many of you will know, the trials are

· Testing VHF Band III and L Band

· Testing a range of content and transmission technology.

· Analysing consumer response

· Determining the business case for digital radio

The outcomes of this trial will inform the discussion between the radio industry and Government and therefore are critical to the radio industry’s future.

So let me share briefly some of the substantial outcomes so far, particularly in – interference minimisation; antenna design and coverage planning; robust in building and mobile coverage; evaluation of the transmission and multiplex equipment for national, networked and local broadcasters, & show you some of the program associated content we believe will enrich existing radio brands.

By the way, our listener panels have been very positive on what they have seen of this additional content describing it as – “More info – at a glance”,

However, current receiver design/function limits what we can show them…

We have come a long way in 15 months on air.

We have safely introduced digital radio between analogue television services,
and we are now upgrading the power of all three digital radio ensembles on Channel 9A.

I am pleased to say that so far we have not had a single complaint to our interference hotline.

We have effectively now built the basic infrastructure for digital services in Sydney and I am pleased to report today that we are starting on the preliminary planning tasks to allow a rapid roll out in the major population centres around Australia.

Government policy permitting!!!

Content development is underway with AAP news tickers live on DAB, virtually before any other source gets them.

Stations variously are displaying programme names, current time, temperature and humidity, sponsor’s details, station website and phone number and competition details.

2GB has had stock market information and live sports updates such as 2004 State of Origin and NRL Grand Final as scrolling text information.

In fact , some of our car panellists reported that for these events they were sitting in their driveways so they could listen to 2GB on DAB and see the live score updates on the scrolling text!

Just today 2GB, announced more innovation with a trial of an NRL Score service in March, via its Digital Radio broadcasts. Radio 2GB has reached agreement with Rugby League statistics provider NRL Stats to undertake a season long R&D trial of expanded Text services.

The trial will allow listeners to 2GB on Digital Radio to see scores from games in progress and just completed matches on their screen in real time, along with extra information such as try-scorers, and statistics…

So our top rating AM station is extremely serious about digital radio and value adding for listeners.

Other stations are also rolling out innovations such as Nova broadcasting newsbreaks and the names of the last three songs played; while the ABC is trialling ‘track now playing’ information with Title, Artist and extended track information…

We would like to see the image about the size of a credit card, and the scrolling text display in a block – like on a mobile phone.

Other innovations include 2KY adding an audio sports highlights package called 2KY extra on a sub-channel of 2KY,

We and the stations are developing additional targeted content for each service.

A basic broadcast slideshow has been developed for several services, including station logo, 4-day weather forecast, advertiser logo, traffic map, live traffic pictures from Sydney’s roads, album covers, surf cam graphics and other dynamic images.

And we have also developed a simulated broadcast website which allows the listener to navigate within a “walled garden” of slides and download an electronic coupon, allowing the listener to redeem a 50c reduction on the price of a McDAB, – whatever that may be!!

We now have over 70 panellists testing a wide variety of receivers.

They are incredibly enthusiastic; in fact one has now bought himself 4 digital radios!

As receiver capability improves we will increase the size of the panels, but for now it’s good to hear them describe the “brilliant quality” of digital sound and their pleasure at no longer having to fine tune AM/FM or put up with crackle and hiss.

Younger respondents are particularly enthusiastic about the ability to store, rewind and pause the radio.

From our more general Colmar Brunton omnibus surveys, we know that there is already 46% awareness of digital radio in Australia – not surprising given everything from phones to cameras to television have gone digital over the past few years and the interest in the print media in the development of digital radio.

There is however still so much more for the trial to investigate on the consumer and the transmission side.

We want to:

· test the most efficient way to get robust in-building coverage of the Sydney LAP using (initially) a hybrid LBand/Band III approach

· explore improvements to antenna design and siting to allow us to maximise Band III coverage

· encourage receiver manufacturers to:

o incorporate seamless switching between LBand/Band III

o make receivers which adequately cope with high bit rate audio and have better ability to display scrolling text and graphics

o make additional content easily accessible on a variety of different receivers.

Then we need to –

· specify broadcast parameters for data

· further explore content and transmission of additional programming to provide valuable information and entertainment on demand.

· Further develop the art of “skimming” existing public information from public and station websites and play out systems

· And finally, work with the record industry, Bureau of Meteorology, State Emergency services and any other primary data sources to access broadcast quality information and imagery.

Our consumer research also shows that listeners are interested in DAB modules being added to the following products:

Palm Pilots, MP3 players, iPods, Digital set-top boxes, Mobile phones, MD players, Analogue radios.

We have barely scratched the surface but I think you can see that in Australia broadcasters are taking the digital evolution very seriously indeed and have already started to work towards it.

HOW WILL DIGITAL RADIO CHANGE THE COMMUNICATIONS ENVIRONMENT?

People have more choices now, but in the digital age radio stands to capitalise on its traditional role and change the landscape even more

We all know that as a free, easily accessible, trusted mass medium commercial free to air radio plays an important role in daily lives of 80% of Australians.

If we’re offering what people want – free to air – the majority will then have no need to subscribe to expensive 3G services, or download podcasts and itunes.

Now I know, that maybe some of these services may cost as little as $1 a month to access …..

For example, movie reviews – but we all know how these initial “free” or “low-cost” offerings have a way of creeping up in price if and when a market is established.

In the digital age for radio, Australians will continue to access mass information and entertainment free to air but also will be able to mine for more information or access complementary sub channel offerings – all free to air –
and in accordance with the station’s listener base and needs – all at no cost to receive the broadcast information to the listener.

For some, it will be the ability to check the screen for background on a topic being discussed on air; or for a photo of the traffic blackspot; a news item; or surf or snow conditions.

For others it will be additional details about an album, or the ability to access interviews, news and sports highlights when it suits on a subchannel which may be replaying a range of key items if they’ve missed them live.

While for others it will be the ability to pause and rewind the live program to catch that song title, news item, weather forecast etc.

If a trial currently underway in the UK works, it might even be the ability to legally download a digital quality song directly from the radio onto an integrated MP3 player.

For the community at large, we’ll be enhancing radio’s role in emergencies so, for example, that in an emergency such as the Canberra bushfires people can possibly see either as text or a map the fire front and wind direction and know beforehand which suburbs are being evacuated.

Bottom line is it will still be commercial radio – free, mobile, accessible – and at the very least offering a better, stronger, more reliable signal

As mentioned, the radio industry internationally is exploring a legal download model to allow radio to become the virtual store for people to get the music that they want, in the quality and form that they want, when they want it.

As the distribution path to make live and recorded music more accessible and affordable to all Australians, commercial radio has a huge opportunity to work with record companies to “clip the ticket” on high volume sales – replacing revenue streams from more traditional retail channels.

Whilst radio and record companies stand to gain, the real winners will be the recording artists and radio listeners.

We look forward to working through the issues and making these strategic opportunities work for us all.

LEGISLATIVE AND REGULATORY ISSUES FOR BROADCASTERS

As I’ve already said we are looking to Government to support our industry in moving forward with digital quite quickly…

We believe that a high quality, free to air, broadcast medium which offers value added content to existing services, interactivity, time shifting and the ability for listeners to redeem e-coupons will give radio the competitive edge over some paid, networked services offering similar rich content.

Having said that, I want to make it very clear, radio has no ambition to become datacasters or pseudo-television.

There are other technologies that can deliver mobile TV and datacasting; and they’re not called digital radio!

We are not envisioning people sitting down to watch the radio.

CAN THE RADIO INDUSTRY SUSTAIN NEW BROADCASTERS?

There is currently a moratorium on analogue commercial radio licences for five years – we suggest this be extended to any new analogue licences.

In the digital space there should be no new licences for a significant period of time…

We will work with vehicle manufacturers to ensure that digital radio is on their road map, and that Toyota, Ford, GMH, Mazda, Honda and the rest start planning to integrate this technology into their cars now.

Where we see specific opportunities for radio is to increase the time spent with radio as people gain more choice and more value from the existing services.

Already, our panels tell us that they listen longer to digital radio; free, timely and dynamic information on sub layers and screens will value to the current radio experience.

Integration of DAB chips into different mobile and in home devices will make radio more relevant than ever.

CONCLUSION

I think that you can see, commercial radio is determined to chart a course for the future now

We have taken the first steps, but we are waiting for a suitable framework in which to operate and one that recognises the worth of this industry and the investment made in it to date.

In effect we are waiting for the go-ahead within key parameters to push the start button on digital roll-out.

I hope we won’t still be waiting this time next year!!!