After being subjected to some strong lobbying from both sides, the ABA has released a policy on digital radio VHF Band III spectrum trials, which allows Broadcast Australia to conduct trials in Melbourne. The “unprecedented” decision has been vigorously criticized by Commercial Radio Australia.

The policy decision comes in response to a request by Broadcast Australia to conduct a VHF digital radio trail in Melbourne. Commercial Radio Australia, which is currently conducting a similar trial in Sydney, had also applied to test in Melbourne. The policy explains how the ABA will deal with issues such as two or more competing bids for trials in the one area.

Commercial radio broadcasters have strongly criticised the decision, which they say “freezes the industry out of digital
radio trials in Melbourne and is a direct and deliberate challenge to the commercial radio industry in this country.” CRA is concerned that the decision may lead to Australia following the British model for digital radio broadcasting, which would open up the digital band to competing new players.

While confirming the “open” nature of trials, which will not only be restricted to incumbent broadcasters, the policy also “increases the emphasis on the temporary and non-pre-emptive nature of trials” by limiting each trial to 18 months. Continuation of a trial beyond 18 months would only be considered if this is justified by the purpose of the trial.

As a result of the policy decision, the ABA has endorsed the existing Sydney CRA trial and has now also given the go ahead to Broadcast Australia (BA) for Melbourne. The trials will occur on VHF channel 9A in both cities, for a period of up to eighteen months. Other applications from CRA and BA, or applications for extensions of the Sydney or Melbourne trials, “will be considered in accordance with the revised policy framework.”

Commercial Radio Australia CEO Joan Warner says: “The ABA is pre-emptively trying to set Government policy by stealth. It is
shortsighted and deliberately provocative and fails to take into account the billions of dollars of investment by existing broadcasters in free to air radio in Australia. The announcement which grants a digital trial license to Broadcast Australia – a tower operator – establishes a dangerous policy precedent which effectively devalues our licences, destabilises the LAP system and threatens the industry’s future.”

ABA Chairman David Flint says: “The ABA has a general policy encouraging trials of new technologies… The new digital radio policy is intended to provide greater clarity and transparency about how this general policy applies to digital radio trials.”

Facilitation of trials by the commercial radio industry is consistent with the ABA’s general trial policy, but “the entitlement to conduct trials is not limited to commercial radio or indeed to incumbents of the broadcasting services bands. The ABA will consider legitimate requests to trial digital radio systems from any person.” The ABA has also indicated it will also consider requests to trial any digital radio technology – Eureka 147, Digital Radio Mondiale (DRM), In-Band On Channel (IBOC), ISDB-TSB and any other existing or emerging system.

Commercial broadcasters reject this policy announcement because it duplicates the UK model of Broadcast Australia’s former owners ntl. “This will lead to valuable public spectrum being held by an organisation with no public interest or community service obligations, and, to radio stations being charged exorbitant access fees
to the spectrum needed to transmit radio signals to continue broadcasting to their millions of listeners,” says Warner.

Radio broadcasters are seeking “equity of treatment” with television broadcasters in relation to digital broadcasting policy where “a confrontational approach with the TV industry” was not adopted.

“We are sure that neither the PM nor the
Minister would be aware of, nor endorse, the current provocative actions of the
ABA and once again request their intervention.

“This pre-emptive policy is effectively a policy of confrontation with, and
disregard of, the commercial radio industry. We have requested that the
Communications Minister and the Prime Minister intervene immediately to overturn
this decision.

“Millions of Australians listen to commercial radio every day – and it is
listeners who will suffer if the commercial radio industry is denied the
opportunity to effectively and comprehensively test this new technology around
the country. As the major stakeholders in free to air radio we have a right to
have a major voice in our own future,” says Warner.

Commercial broadcasters had formed a consortium with the ABC and SBS to launch a
consumer trial of digital radio services in Sydney from next month. The
consortium had also, on three separate occasions, applied for spectrum to roll
out trials around the country, with a trial in Melbourne planned to start next
year.

To “ensure that the needs of the entire in-band broadcast community were
being considered,” the consortium had also invited the participation of the
industry bodies for community broadcasters and high-powered narrowcasters in all
future trials to be set up by the consortium.

The ABA’s policy says permission to conduct a trial in no way pre-empts or constrains future policy:

· Allocation of BSB spectrum for a trial confers no rights to use of that spectrum other than for the purpose and duration of the trial.

· Allocation of a part of the spectrum for a digital radio trial does not preclude trials of other systems using that spectrum or imply that digital radio will be the preferred user of that spectrum in future.

· Permission to trial a particular digital radio system does not imply the system will be introduced into Australia permanently or, if it is, that it will use the same part of the spectrum as the trial service.

· The fact of participation in a trial does not imply the trial participant will be permitted to operate digital broadcasting services if permanent digital radio services are introduced.

· People who acquire equipment in connection with trials, including retailers or members of the public who purchase digital radio receivers to participate in trials or receive trial services, do so at their own risk that the trial may be discontinued.”

Where appropriate, the ABA will also require that trial broadcasters inform consumers and trial participants of the digital radio trial policy and the temporary nature of the digital radio transmissions. In part this is to ensure that the expectation of consumers is not falsely raised as a consequence of a trial process.