FCC Okays Long-Awaited HD Radio Service Rules, Including Multicasts

The “historic” order helps terrestrial radio compete with online streaming, portable players and satellite radio by offering listeners more content at no cost, Chmn. Martin and colleagues said. Stations can sell subscription channels, in the manner of XM and Sirius.

Comrs. Adelstein and Copps partially dissented because the item lacked enhanced public interest obligations they'd sought. They said the FCC deliberately avoided that subject by vote to issue a further notice of proposed rulemaking (FNPRM) that seeks public comment on broadcaster duties, rather than impose them in the HD Radio order. Talks on the 8th floor of such requirements delayed approval of the order -- it was yanked from the July 2006 meeting agenda -- leading Comr. McDowell to say issuance of the rulemaking was overdue. “Our action today allows the U.S. to catch up to other countries” with standards already in place, he said.

The new rules put digital broadcasts under the same FCC rules as analog transmissions. “Digital radio stations are subject to the same public interest obligations as analog radio,” including mandates to air emergency alerts and follow political ad rules, said Martin. Radio multicasters also come under indecency rules, Media Bureau Chief Monica Desai told us after the meeting: “Whatever rules apply in the analog context would apply to digital.”

Stations can use many analog facilities to multicast digitally, and need no Commission authorization to do so. For instance, FM stations can use existing analog translators to boost digital signal availability, an FCC official told us after the meeting. AM stations get some benefits, too, but industry officials have said technical hurdles generally keep them from multicasting. AM broadcasters can begin nighttime digital operations. Digital stations must broadcast those signals with quality as good as their analog transmissions.

“Digital radio is just in its infancy, but it has much potential,” said Copps, noting that the medium is “free of the static, hiss and pop that sometimes limit our analog system.” Of approximately 13,000 U.S. radio stations, 1,226 simulcast analog broadcasts in digital, said an iBiquity spokeswoman. Among those stations, 554 provide at least one more channel. In the D.C. area, 20 stations are broadcasting 30 channels, said Comr. Tate. Martin likened multicasting’s benefits to those predicted for the DTV transition, except radio stations have no deadline to start digital broadcasts. “Multicasting will enable radio stations to provide a greater amount and greater variety of free programming,” he said.

Republican commissioners defended their decision to leave public interest rules out of the order, with Martin and Tate saying the FNPRM is best way to study new rules for a nascent technology. Adelstein, Copps and some media advocates wanted to require broadcasters to devote a certain amount of airtime to local topics. “The Commission is currently considering a proposal that would modify broadcasters’ disclosure obligations,” Martin said: “I am not comfortable, however, telling broadcasters exactly how much time they must spend on each of these areas… Mandatory minimums too often become ceilings on what broadcasters provide, not floors.”

The FNPRM seeks input on applying public interest rules to radio multicasters, said an FCC release. The FCC wants comment on “appropriate limits to the amount of subscription services that may be offered by radio stations,” it said. Copps wondered aloud if radio stations should pay a 5% tax on subscription revenue. Adelstein flayed GOP colleagues for not doing more to get multicasters to lease excess capacity to minority and female programmers. “It’s not asking a lot for us to simply encourage positive action, but apparently it was too much for a majority of the Commission,” he said. The FNPRM, to be issued later, will seek feedback on an array of public interest and other areas, Desai told us: “It casts a pretty wide net.”

In adopting HD Radio service rules, the FCC decided not to set a hard analog cutoff date, as Congress did with DTV. Neither did it impose an audio flag or other content protection controls on HD Radio to thwart unauthorized Internet redistribution of digital content, as RIAA sought. Media Bureau representatives said the order skirted those actions in light of multi-industry talks seeking a long-term solution to unauthorized copying. Broadcasters had discussions all last year with RIAA on content protection issues, NAB Exec. Vp Dennis Wharton told us. “The talks broke off when RIAA pushed for legislation, which they did not accomplish successfully,” he said. This year, all sides have been waiting as the new Congress got organized and made committee assignments, Wharton said: “We view today’s FCC comments as encouraging in that the Commission recommends a voluntary industry solution as opposed to regulatory/legislative mandate.” RIAA couldn’t be reached for comment.

HD Radio licensor iBiquity Digital predictably hailed the decision. “We're thrilled with the Commission’s action,” iBiquity CEO Bob Struble said: “This is another important milestone in the now rapidly accelerating HD Radio system rollout.” Last month, Struble visited FCC Chmn. Martin to say regulatory delays hurt the HD Radio rollout. NAB lauds the FCC “for taking a significant step today in advancing the already budding HD Radio technology,” said Pres. David Rehr.

CEA similarly was pleased, said Pres. Gary Shapiro: “Today’s FCC ruling will help motivate manufacturers to focus on digital radio. As broadcasters embrace and promote it, consumers are in turn more likely to embrace the next generation of radio broadcasting.”