NPR survey of stations estimated cost of digital conversion of FM...
NPR survey of stations estimated cost of digital conversion of FM station at $107,000 each. Giving details of Early Adopter Station Enhancement (EASE) survey at Public Radio Conference forum in Washington Thurs., NPR Chief Technology Officer Don Lockett said…
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cost estimate was based on reporting of 135 stations. With 9 AM stations reporting, their average cost was $110,000, he said. Lockett said in- band, on-channel (IBOC) technology developer iBiquity had agreed to flat license fee of less than $4,000 per station for noncommercial and educational broadcasters. In addition to license fee, stations will have to pay iBiquity 3% rebate from revenue generated on data capacity. FCC, which had started notice of proposed rulemaking (NPRM) on standard for digital audio broadcasting, has accumulated “mountain of data,” said Keith Larson, FCC Media Bureau chief engineer. When asked by member of audience whether Commission could allow franchising of proprietary IBOC technology that would require stations to pay license fee, Larson said agency hadn’t yet picked application for DAB, so it couldn’t consider issues such as licenses and patent fees. In NPRM, Commission set forth 2 applications -- IBOC technology and out-of-band applications, he said. IBiquity Pres. Robert Struble said his company had invested $100 million in developing technology and expected costs to go up to $150 million. Licensing fee is needed to recover costs and to operate viable business, he said: “It is not gouging.” Defending decision to collect rebate on data revenue, Struble said idea initially was to sell software to stations, but broadcasters were reluctant to pay upfront for service whose value to listeners was uncertain, he said. That’s why “pay as you go” model was adopted, with stations at liberty to abandon datacasting if it wasn’t viable revenue source. Commercial launch of receivers is scheduled for CES show in Las Vegas in Jan., Struble said. First receivers aren’t expected to have capacity for secondary audio, he said. Receivers with that capacity aren’t expected to hit market until late 2003. Asked if there were potential for FCC mandate on digital audio, Larson said there was fundamental difference between DTV and IBOC application in that new and additional spectrum had been allocated for TV, unlike radio.