Mobile streaming is too expensive to replace broadcast digital radio any time in the foreseeable future, particularly in regional areas, according to a report commissioned by Commercial Radio Australia (CRA).
The report was conducted by Coutts Communication’s Professor Reg Coutts to analyse the use of mobile communications to deliver free-to-air broadcast radio in Australia. CRA has been proposing a regional roll-out of digital radio services since its submission to the Government's Digital Radio Discussion Paper earlier this year.
This new report found that while the mobile internet revolution has allowed radio streaming to be accessible, the cost and inefficiency of it means it is not a viable replacement for digital radio.
It said that most regional sites, particularly outside of regional centres, are unlikely to be provided with 4G LTE coverage and will be using 3G instead. It said there was “considerable uncertainty as to a plausible business model” to support an upgrade to 4G LTE to cope with streaming radio.
The Coutts report added that it would also mean that listeners would need to pay for radio services they get for free, as streaming requires data usage.
“The report demonstrates that mobile broadband networks generally, and in regional areas particularly, cannot substitute as an alternative platform for broadcast radio delivery by broadcasters,” it said.
“A more spectrum-efficient and cost-effective approach for digital radio is to extend DAB+ Digital Radio spectrum allocations to regional Australia.”
However, the report added that while the market adoption of DAB+ Digital Radio has been rapid, primarily as a result of it being available in new cars, it's currently restricted in use in Australia to urban centres.
In comparison, mobile broadband coverage has not been constrained and “yet in spite of this advantage, has not met the pent up demand for broadcast radio,” it said.
“It is an irony that the regions that have the most to gain from Digital Radio are being currently denied service,” the report read.
The radio industry has rolled out digital radio in five state metropolitan capitals and is looking to continue a phased roll-out to regional areas. In its submission to the Digital Radio Discussion Paper, CRA proposed the Government establish a Digital Radio Planning Group and commit to a timetable for a roll-out of digital radio into regional Australia.
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