Federal Communications Commission FCC 90-281

5 FCC Red No. 17 Federal Communications Commission FCC 90-281

states that these two allocations would provide 34 chan- Before the nels of local radio service and 66 channels of satellite Federal Communications Commission service. Washington, D.C. 20554 4. Second, on May 22, 1990, Radio Satellite Corpora- tion (RSC) filed an application to construct and operate an earth station that would provide digital audio programming along with other mobile services through the mobile GEN Docket No. 90-357 satellite system licensed to the American Mobile Satellite Corporation. RSC proposes to resell satellite capacity on a In the Matter of non-common carrier basis to common carrier and broadcast entities who would provide the services. Amendment of the Commission's Rules 5. Third, on July 27, 1990, Strother Communications, with regard to the Establishment Inc. (SCI) filed a petition for rule making requesting the and Regulation of New Digital Audio Commission to allocate spectrum and adopt rules for a terrestrial digital audio broadcasting system (DAB). In Radio Services SCI's proposal, DAB channels would first be made available to existing AM and FM broadcasters. The remaining channels would be allocated using an ajpIication filing NOTICE OF INQUIRY window, and, in the case of mutually exclusive applications, either lotteries or comparative hearings would de- Adopted: August 1, 1990; Released: August 21, 1990 termine the licensee. SCI proposes that a primary allocation of 48 MHz be made available for DAB in the By the Commission: Commissioner Duggan issuing a 225-2700 MHz range, with the preferred allocation as statement. close to 225 MHz as possible. Sd States that 48 MHz of spectrum would provide 192 DAB channels of 250 kHz 1. By this action, the Commission commences an initial each. inquiry into the development and implementation of new 6. In Europe, efforts are now underway to develop digital audio radio services. The Commission seeks in- technical standards for digital radio. The European Broad- formation that will assist it in developing technical stan- casting Union (EBU) and the European Eureka "Digital dards and regulatory policies for the possible introduction Audio Broadcasting" research and development project of such new digital radio services. have been studying approaches to provide high quality sound service and have developed an advanced digital approach for both satellite and terrestrial sound broadcast- ? BACKGROUND ing.4 2. Digital audio radio services encompass a wide range of technologies and techniques used to provide sound quality much higher than can now be provided by exist- DISCUSSION ing AM and FM broadcasting services. In general, it refers 7. Given these recent developments, and the variety of to the use of digital modulation techniques to provide proposals for digital audio radio services presented to the "compact disk" quality audio; improved stereo separation, Commission,5 we believe that it is appropriate to begin a even in mobile environments; greater dynamic range; bet- broad inquiry into all aspects of digital audio radio ser- ter signal-to-noise and interference performance; and, vice. It is our intention in this proceeding to begin to elimination or reduction of muitipath and fading prob- focus public attention on this potentially important new lems. A number of parties both in the United States and medium so that the Commission will be in a position to Europe are exploring the prospect for transmitting audio act in an expeditious and reasoned manner to facilitate programming using digital modulation techniques. the emergence of digital radio as appropriate. The expedi- 3. The Commission has received three filings requesting ency of this proceeding assumes even greater importance, authorization to provide digital audio broadcasting ser- as we are in the process of formulating the United State's vices) First, on May 18, 1990. Satellite CD Radio. Inc. frequency allocation proposals for the 1992 World Ad- (Satellite CD Radio) filed a petition for rule making to ministrative Radio Conference (1992 WARC),6 allocate frequencies for a new CD-quality radio service.2 8. While digital radio service promises to offer signifi- According to Satellite CD radio, this new service would cant quality and performance improvements, it also raises be provided in part by satellites and in part by terrestrial a number of important regulatory issues. One is the im- transmitters. For the satellite portion, it proposes to sell pact digital radio would have on existing audio services. A transponder capacity on a non-commort carrier basis to second issue, and perhaps the most difficult, is how to both existing AM and FM broadcasters seeking accommodate the spectrum needs of digital audio service. "superstation" status and new entities desiring to provide We also should consider the regulatory structure or struc- nationwide radio programming to subscription customers. tures needed to ensure that the public benefits of digital The terrestrial portion of the system would be made avail- radio are most efficiently realized. Another issue, given able to existing AM and FM broadcasters. Satellite CD the variety of frequencies proposed for use in the pending Radio proposes a primary allocation for terrestrial oper- applications, is whether one set of governing policies ations in the 1460-1470 MHz band. in addition, it pro- should be adopted for the service regardless of the fre- poses a primary allocation for digital satellite radio service quencies used or whether policies unique to each pro- in the 1470-1530 MHz band. This band is presently used posed band and service offering should be adopted. For for aeronautical telemetry operations. Satellite CD Radio example, should terrestrial digital audio radio service be

5237 FCC 90.281 Federal Communications Commission Record s FCC Rcd No. 17 regulated as a broadcasting service, or a private service, vices, should satellite digital audio radio' service be pro- while satellite digital audio radio is regulated as a com- vided as part of the mobile satellite service (MSS), as RSC mon carrier? proposes, or should it be designated as a new satellite 9. Potential for Improved Quality and Service. Digital service? radio offers the potential for significant improvements in 12. Accommodating Digital Audio. While we wish to the sound quality of audio programming. We seek com- encourage technical innovation and the development of ment on the ramifications of these potential improve- new services, such as digital audio, we must weigh these ments on both broadcasters and the listening public. For factors against competing demands for the use of the example, has the wide consumer acceptance of compact spectrum. We must judge the benefits of digital radio disk players made the quality of existing AM and FM service against the needs of other existing and proposed radio services less satisfactory to consumers? If it has, how new services. Accordingly, we seek comment on the hs this dissatisfaction been manifested and is it likely to amount of spectrum required for a digital radio service, increase over time? To what extent would consumers be potential frequency bands where such service(s) could be willing to pay extra for new equipment, capable of receiv- accommodated, and the impact that such digital radio ing digital audio, broadcasts, for an incremental increase allocation(s) may have on the availability of spectrum for in sound quality? If some improvement in quality is other services. In this regard, we ask comnienters particu- desireable, should performance benchmarks be used to larly to address the issue of whether the existing UHF judge audio quality? Can these be quantified? To what television allocation can, or should, be used to provide extent should inultipath and fading performance be a digital audio services in Light of the need for this spec- factor? Digital audio systems are now being developed for trum to accommodate ATV.8 As previously noted, the advanced television (ATV) systems.7 To what extent could proposal of RSC does not involve a frequency ATV be used for the provision of radio audio services? reallocation. We seek comment on the feasibility and Conversely, would developments in digital radio be of desirability of permitting digital audio radio service in any value to ATV? bands generally allocated for the mobile satellite service. 10. We also request information on other issues relating Also, we ask commenters to discuss how the development to implementation of digital radio broadcasting by provid- of this service might lead to future spectrum efficiencies. ers of the service, such as cost and coverage area. What 13. If a new frequency allocation is provided for digital would be the service provider's cost to provide digital audio service, should provision be made for both satellite radio? We note that digital radio services can be provided and terrestrial operations within the same band? Such an by satellite and terrestrial based transmitters. A satellite- approach could expand the potential international market based system would appear to offer the benefits of wide- for digital audio receivers, since both terrestrial and sat- coverage area and would appear most conducive to ellite services would be able to use the same receivers. providing regional or national digital audio services. Such Should separate bands be reserved soley for terrestrial a service could offer important public benefits of bringing broadcasting and for satellite-based digital radio service? If new audio services to underserved areas and providing the so, how large should such allocations be? If digital audio availability of reliable, Continuous service over major is provided on a terrestrial basis, how many digital radio highway routes between distant cities. Terrestrial-based channels should be provided in various markets? If digital systems offer the advantage of local stations providing audio is provided by satellite, should several systems be programming responsive to local needs. We request com- accommodated? If enough spectrum to accommodate sev- ment on the benefits of terrestrial-based and satellite-based eral system is not available, should a consortium ap- digital radio systems, including hybrid systems combining proach, as suggested by Satellite CD Radio be adopted? both. Would it be desireabie to authorize separate terres- Further, if provided by satellite, should the Commission's trial and satellite services? What regulatory structure traditional open skies policy be applied to this new ser- should be applied? vice? Such an approach would allow satellite licensees the 11. Impact on Existing Radio Services. The United States flexibility to determine how the service would best be has a strong, competitive radio broadcast service. There offered to their targeted markets. We also seek comment are presently about 5000 AM radio stations and over 4300 on the possibility of providing digital audio programming commercial FM stations now providing service to listen- in the existing FM radio broadcasting allocation. We note ers. Noncommercial public radio also plays an important that while it does not appear likely that existing AM radio role in providing service to the public through its 1400 channels could be converted to digital modulation, im- stations. The addition of a new radio service might have a provements in digital compression techniques make the significant impact on these existing services. We request possibility of providing digital audio signals within an comment on whether a negative impact is likely and, if existing 200 kHz FM radio band perhaps technically and so, the magnitude of that impact, whether certain classes economically feasible. We seek comment on the costs and of stations might be disproportionately affected, and how benefits of such an approach to providing digital radio any such affects could be minimized. Conversely, we ask service. In our ATV proceedings, we noted the early work whether converting to a more spectrum efficient, higher on satellite delivered ATV, but then choose to move sound quality digital radio service might work to the agressively toward a terrestrial technology that would eventual benefit of existing radio broadcasters? We also compliment our existing TV service without precluding request comment on how we should permit existing sat- satellite delivered ATV. Is this approach possible in the ellite and terrestrial service providers to participate in the digital audio broadcasting area? provision of new digital services. For example, should we 14. Regulatory Issues. We believe that it is appropriate provide existing terrestrial audio broadcasters with a mi- to begin the process of inquiring into regulatory policies gration or transition priority in a new digital audio ser- to ensure that a digital radio service, if permitted, will vice? Should there be a priority or "set aside" for best serve the public interest. We request public comment noncommercial operations? With respect to other ser- on what regulatory stucture or structures should apply to

5238 5 FCC Rcd No. 17 Federal Communications Commission FCC 90-28 1 digital audio. The present proposals, for example, suggest nications Commission, Washington. D.C. 20554. Com- providing digital radio services on both a non-broadcast ments and reply comments will be available for public subscription basis and on a more traditional broadcast inspection during regular business hours in the Dockets service basis. Comment is requested on the merits of each Reference Room (Room 239) of the Federal Communica- of these approaches. We also request comment on wheth- tions Commission, 1919 M Street N.W., Washington, D.C. er traditional broadcast ownership restrictions should ap- 20554. For further information concerning this Notice of ply to providers of digital radio services. What ownership Inquiry, contact Bruce A. Franca, Office of Engineering restrictions, if any, should apply to satellite delivered digi- and Technology, Federal Communications Commission, tal audio services given the fact that it is likely such Washington, D.C. 20554, services would be supplied on a regional or national basis? How can the provisions of Section 307(b) of the FEDERAL COMMUNICATIONS COMMISSION Communications Act regarding the distribution of facili- ties among states and communities, e.g., localism, best be taken into account in the provision of digital audio services? What other existing broadcast rules and policies must be considered, and perhaps modified, in instituting Donna R. Searcy satellite or terrestrial digital radio services? We also request comment on whether this service would be analo- Secretary gous to the situation in the domestic fixed-satellite industry, where fixed satellites are used to transmit "superstations" and other video programming on either a FOOTNOTES subscription or free-of-charge basis. If so. would similar Additionally, in the Notice of Inquiry in GEN Docket No. regulation of digital radio service providers be appro- 89-554, addressing preparation for the 1992 World Administra- priate. tive Radio Conference, the Commission requested comment on 15. We note that several proposals for digital radio the need for a satellite sound broadcasting allocation in the suggest that several channels be made available at each United States. More specifically, that Notice of Inquiry requested transmitter location. For example, the Eureka system comment on the need for a satellite sound broadcasting service would permit 12 to 16 channels of programming on a 4 in the 500-3000 MHz range and whether the service should have to 6 MHz channel. How should such a service be licensed an exclusive allocation. 4 FCC Rcd 8546 (1989). In comments, and what regulatory structure should apply? Should each The Voice of America, National Public Radio, and Adventist program provider be licensed or only the operator of the Broadcasting Service expressed support for an exclusive alloca- transmitting facility? What method should be used for tion for such a service. selecting licensees to provide digital radio services? Fur- 2 See Petition for Rule Making filed by Satellite CD Radio, ther, how should we choose among competing systems? Inc. (RM-7400). This petition was placed on public notice and 16. U.S. Competitiveness. Digital sound broadcasting is comments were requested on its merits. The due dates for now being actively investigated in many parts of the comments and replies to Satellite CD Radio's petition have been world. As indicated previously, this technology is being extended and are now August 20, 1990 and September 4, 1990/ actively developed and tested in Europe. Canada and the respectively. To the extent they are relevant, comments filed n Soviet Union are also actively investigating the possibility response to Satellite CD Radio's petiton will also be considered of implementing digital radio. To what extent would U.S. in this proceeding. interest be disadvantaged if we do not participate in the Prior to filing its Petition for Rule Making, on May 23, 1990, development of this new technology? Is the development SC! tiled an application for experimental authority to construct of digital audio radio simply one aspect of an overall and operate a digital audio transmission system in Boston, Mas- move towards digitization of telecommunications? Would sachusetts and Washington. D.C. SCI has proposed the use of the encouragement of digital audio contribute to U.S. channel 14 or 59 in the Washington area and channel 59 in the efforts to remain competitive in telecommunications and Boston area to provide 14 digital audio program channels on information processing? each UI-IF television channel using the European developed Eureka- 147 digital audio broadcast system. See e.g., EBUIDAB Studies for a New Digital Sound Radio PROCEDURAL MATTERS Broadcasting Systeni - CD Quality for Mobiles by C. Dosh, F. 17. This Notice of Inquiry is issued pursuant to author- Kozamernik, E. Meler-Engelen, D. Pommier, P.A. Ratliff. ity contained in Sections 4(1), 303 and 403 of Commu- In addition, we note that three companies, International nications Act of 1934, as amended. Pursuant to applicable Cablecasting, Technologies Inc., General Instrument Inc., and procedures set forth in Sections 1.415 and 1.419 of the Digital Radio Labs. Inc. have already begun to offer cable digital Commission's Rules, 47 CFR Sections 1.415 and 1.419, radio services. In these systems, program material is delivered to interest parties may file comments on or before October consumers in digital format on a cable system's unused trunk 12, 1990 and reply comments on or before November 13, space. The digital information is then converted to analog for- 1990. All relevant and timely comments will be consid- mat by a component that connects to the consumer's audio ered by the Commission before taking further action in system. From thirty to ninety-six CD quality digital channels this proceeding. To file formally in this proceeding, par- will be available, depending on which of the three systems is in ticipants must file an original and four copies of all use. Currently, non-CD quality cable mu5ic services reach ap- comments, reply comments, and supporting documents. If proximately 11 million subscribers. participants want each Commissioner to receive a per- sonal copy of their comments, an original and nine copies must be filed. Comments and reply comments should be sent to the Office of the the Secretary, Federal Commu-

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