174/04
20 December 2004

Introducing digital radio to Australia

A consultation process for the development of a policy and regulatory framework for the introduction of digital radio in Australia was announced today by the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan.

"Digital radio presents an opportunity to substantially improve the quality and range of services enjoyed daily by millions of Australian radio listeners," Senator Coonan said.

"Digital transmission systems offer a range of potential improvements over their analog counterparts, including better audio quality and the provision of a more diverse range of new enhanced radio services."

Further work is required on a range of technical and other issues before the full policy framework for digital implementation can be determined, but the Government expects to be in a position to elaborate on the framework within 12 months.

The Government has agreed to a moratorium on new Licence Area Planned (LAP) commercial digital radio licences for an initial period of five years. The moratorium will commence once technology and spectrum issues are resolved and a timetable for roll out of digital services determined.

"The moratorium recognises the important contribution incumbent commercial broadcasters will make in the digital future and provide them some stability in the early stages of the introduction of digital radio," Senator Coonan said.

The Government has released the report of the Digital Radio Study Group (DRSG) and an issues paper inviting submissions from interested parties on specific issues associated with the introduction of digital radio. The Government has also adopted a set of broad policy principles (see attached) to guide its consideration of digital radio issues.

At the same time further work will be undertaken by the Australian Broadcasting Authority (ABA) and the Australian Communications Authority (ACA) on the availability of VHF and L-Band spectrum, including in major metropolitan areas. This will allow a more detailed understanding of the number and characteristics of the digital services that could be made available in the short to medium term.

The ABA and ACA will also conduct additional technical research, in consultation with the radio industry, on:

•  a hybrid VHF/L-Band model for spectrum planning, which would involve the latter band being used for infill or town-only purposes; and

•  L-Band propagation and building penetration characteristics and transmission site requirements.

"Data emerging from the current industry trials of digital radio technology in Sydney and Melbourne , and future trials to be undertaken in regional markets, will provide valuable input to these issues and I look forward to the progressive release of information by trial operators," Senator Coonan said.

Those with an interest in digital radio are strongly encouraged to make submissions on the policy issues associated with the introduction of digital radio in Australia .

The DRSG report, an issues paper to guide submissions and further information on the consultation process are available online at www.dcita.gov.au/broad/consultation .

Submissions should be made by 20 April 2005.

Media Contact:   Jane McMillan  0438 690 305

www.minister.dcita.gov.au

DIGITAL RADIO IN AUSTRALIA

PRINCIPLES

• Digital radio services can offer a range of consumer benefits not available through analog radio. Digital radio should promote enhanced quality and diversity of services currently enjoyed in Australia .
• The Government is committed to ensuring that all Australians, regardless of where they live, have access to the best radio services possible. In choosing suitable digital radio technology, the ability to serve metropolitan, regional and rural areas in a viable fashion is an important factor to be considered.
• The introduction of digital radio in Australia is an important policy question for Government and industry.
• There are lessons to be learnt from digital radio trials, including trials in regional and remote Australia .
• Final decisions concerning technology and allocation of spectrum are central to settling policy details on the introduction of digital radio.
• There will be a substantial period during which analog and digital radio platforms will co-exist. Digital radio may never be a complete replacement for analog radio.
• The Government recognises the interests of, and substantial investment made by, the incumbent national, commercial and community radio broadcasters and the valuable and important role they can play in the introduction of digital radio.
• Digital technology offers the promise of a range of new and innovative services to radio audiences. It is important that the development of new services is encouraged.
• Spectrum is a valuable and limited public resource. The Government has asked the ABA and ACA to commence a detailed investigation of spectrum issues associated with the introduction of digital radio, in consultation with industry.