Broadcast Law Blog

The Commission today adopted a Second Report and Order and Further Notice of Proposed Rule Making regarding Digital Audio Radio or HD Radio.  While the text of the Order has not yet been released, the following details were announced at the Commission’s meeting.  A copy of the News Release issued today is available here.  The Commission stated that its Order is aimed at promoting the ultimate transition of terrestrial radio broadcasting to all-digital, however, it has not imposed a mandatory transition to digital-only operations at this time. 

Importantly, the Order streamlines the process for commencing digital operations and permits the following:

• FM stations may commence digital operations without prior authority from the FCC and may use separate antennas for the digital and analog signals without the need for an STA.
• Stations may operate in extended digital hybrid mode, permitting additional capacity.
• AM stations may operate during nighttime hours.
• FM translators, boosters, and LPFM stations may operate digitally.

With regard to policy issues, the Commission adopted rules for digital radio that are similar to those that exist today for digital television. Specifically:

• Stations that chose to broadcast in digital must provide a free digital stream that simulcasts the programming of the analog channel.
• Stations have the flexibility to provide multiple programming streams, provide data services, or provide the highest quality audio service.
• Stations may lease the unused portion of their radio spectrum to third parties.
• The existing rules, such as EAS, political, sponsorship ID, and station identification, are extended to all the free streams of programming provided by a station.

Again, notably, the Commission has not imposed a mandatory transition to digital operations, nor has it elected to allow digital-only stations. Rather, stations must retain their

analog signal, but can supplement it with one or more free digital streams. The Further NPRM seeks comment on issues such as subscription services and additional public interest obligations for digital streams. The issue of additional public interest obligations was a big one for the Commission, and judging from the comments offered by the commissioners, simply the discussion of additional obligations caused substantial delay and discord among the commissioners. Consistent with their approach to digital television, the Democratic commissioners felt that the FCC should at least look at whether additional public interest obligations should be imposed on digital radio to encourage involvement by minorities and women, increase programming diversity, and emphasis localism.  Commissioner Copps also noted that he will be interested in exploring the effect of digital radio on competition in local markets, and seemed skeptical that multiple ownership restrictions would need to be loosened if stations could multicast multiple streams of programming.  A copy of Commissioner Copps' statement on the item is available here, and Commissioner Adelstein's statement is available here.