Sprint, Broadcasters Reach Deal on FM Chips in Some Smartphones
Sprint Nextel said it will be the first major carrier to activate FM receivers in a “broad array” of smartphones. That’s a victory for broadcasters who have been trying for years to reach such an agreement with a carrier. Certain Android and Windows smartphones on Sprint will soon come with the NextRadio app, which will allow listeners to tune local FM stations (http://xrl.us/bn9yro). The app will also let broadcasters develop new products and ways to engage listeners, said Jeff Smulyan, CEO of Emmis Communications, who has been spearheading broadcast industry efforts to get more wireless phones FM-enabled. The pact drew praise from Washington.
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Broadcasters will pay Sprint an annual fee for three years, under the agreement, Smulyan said. “We think it’s a reasonable fee to make them the first mover,” he said. “We believe the revenues on the back end will ultimately make sense. ... I think this has a chance to be a game changer for the industry, and it’s also something that’s going to matter to the American public."
Broadcasters have had ongoing discussions with carriers for years about the prospect of integrating FM service in the more cellphones, but talks with Sprint were renewed last year after Smulyan contacted Larry Glasscock, a Sprint board member and old friend, Smulyan said. “He was very helpful in getting the a renewed dialog last year.” The wireless, broadcast and consumer electronics industries appeared to be far apart on such a deal over the summer, at an FCC-hosted meeting on the subject (CD July 27 p4).
A few factors led Sprint to make the deal, a spokeswoman said. For one, it involves a consolidated view and participation by radio stations that will make sure there will be a consistent experience delivered across devices, she said. Furthermore, it’s an opportunity to offer new features to consumers, she said: “Finally the technology costs less today because of the rapid growth of smartphone adoption.”
FCC Chairman Julius Genachowski commended Sprint and the radio industry for reaching a deal, he said: “The ability to receive FM broadcasts on mobile phones can give American consumers another way to access critical information during emergencies.” House Communications Subcommittee Chairman Greg Walden, R-Ore., took to Twitter to praise the deal: “Hope other companies take this approach.” NAB CEO Gordon Smith said the deal recognizes the unique strengths of both the wireless and broadcast radio industries.