Legislation would force all new US radios to include digital 'HD'

More digital radios, especially those installed with new automobiles, include the capability to pick up digital "HD Radio" broadcasts over the air. But should the government mandate that satellite radio sets include HD Radio capability?

Demonstrating that there actually were at least a few spare minutes for Congress after all, during the debate over the financial bailout plan, House Telecommunications Subcommittee Chairman Ed Markey (D - Mass.) introduced a bipartisan bill that will require all future AM/FM radios or satellite radio receivers made or sold in the US to also receive digital HD broadcasts.

HD Radio, though not necessarily "high-definition," refers to digital broadcasts in the "sidebands" that many US radio stations utilize to provide extra channels of programming. The effect is similar to new supplemental digital television channels, which enable alternate programs that can be picked up over the air. Currently, there's no requirement that HD Radio be built into new radio equipment, though more and more sets -- particularly in automobiles -- is including it.

The big change, therefore, would be for Sirius XM Satellite Radio, whose plans for now are to continue producing some radios for Sirius subscribers and other radios for XM subscribers. This bill wouldn't force satellite functionality to be interchangeable, though it would force the nation's sole satellite radio provider to open up alternate channels for commercial digital broadcast radio.

The language of the bill is very simple: It would amend the Communications Act of 1934 to "require that apparatus shipped in interstate commerce or manufactured in the United States that is designed to receive signals broadcast in both the satellite digital audio radio service and the terrestrial AM or FM radio broadcast service be equipped with technology that is capable of receiving and playing digital radio signals as transmitted by terrestrial AM or FM stations."

In a statement over the weekend, Rep. Markey said his objective was to ensure that future radios are still capable of providing listeners with local news.

"Millions of Americans today rely on local broadcast radio for news, public safety bulletins, sports, weather, traffic and other information," Markey stated. "As the broadcast radio industry migrates to digital broadcasting technology, this legislation will ensure that consumers are able to readily receive free service through consumer electronics systems that are otherwise receiving satellite digital audio radio and traditional AM or FM stations. Further, the recent merger of the only two satellite radio providers, XM and Sirius satellite radio, has underscored the importance of ensuring consumer access to a diversity of sources for digital radio content, in particular content originating in their local communities. My bill therefore simultaneously seeks to address the long-term competitive health of local radio while ensuring that their local, digital services are readily received by radio consumers."

As anticipated, the National Association of Broadcasters voiced its support for the bill. In a statement this afternoon, NAB President and CEO David K. Rehr said, "In addition to providing 235 million weekly listeners with entertainment and music programming, free local radio stations have a long tradition of serving as a lifeline during times of crisis. This legislation will extend and enhance these services as radio stations embrace our digital future."

Spokespersons for Sirius XM declined a direct comment on the matter, but instead pointed us to an article elsewhere that cites the fact that the Federal Communications Commission continues to study the possible impact of any HD Radio requirement on competition.

Last month, the FCC opened up a 90-day comment period for the public to comment on whether it believes competition may be affected by the onset of more federal regulation. That comment period remains open, even though Markey's bill was introduced right in the middle of it.

"As an initial matter, we seek comment on the extent to which the market is already making multi-functional radio receivers available to the public that include two or more of the following capabilities: SDARS, HD Radio, iPod/MP3, Internet, or any other technologies capable of providing audio entertainment services," reads the FCC's August 25 Notice of Inquiry (PDF available here). "How many of each type of multi-functional radio receivers are available today, including factory-installed receivers in automobiles and receivers later installed in vehicles in the so-called 'aftermarket?' How many multi-functional radio receivers are expected to be available in the near future without a Commission requirement? To the extent that multi-functional radio receivers are not available today and are not expected to be available in the near term, is this because of a lack of consumer demand for such receivers or some other reason? How does any lack of multifunctional radio receivers impact competition among SDARS, HD Radio, iPod/MP3, Internet, or any other technologies capable of providing audio entertainment services?"

After the FCC issued an order approving the transfer of assets from XM to Sirius, Commissioner Jonathan Adelstein issued a statement dissenting from that order, which included a warning about the HD Radio issue.

"While some proposed that we require HD radio technology be incorporated into all new satellite receiver models capable of receiving analog terrestrial radio, I proposed we require it only in subsidized models. That way, if there were truly an open market for devices, as an independent process for certification would have ensured, the market would determine whether to integrate HD radio into the devices," Adelstein wrote (PDF available here). "Where the merged company sought to alter market dynamics through subsidies or other mechanisms, it would be prevented from discriminating against competing HD radio technology. Instead, the Order allows the merged company to avoid subsidizing models that include HD radio, thus using their market power to thwart the very competition the Applicants [XM and Sirius] cited as justifying the merger."