[FOR IMMEDIATE RELEASE]{.underline}: News Media contact:

November 1, 1999 David Fiske: (202) 418-0500

**FCC COMMENCES RULEMAKING**

**TO CONSIDER TERRESTRIAL DIGITAL AUDIO BROADCASTING**

Washington D.C. -- November 1: The FCC today began a rulemaking
proceeding to consider methods for introducing digital audio
broadcasting (DAB) to the public.

In a Notice of Proposed Rulemaking issued today, the Commission (1)
reaffirmed its commitment to provide radio broadcasters with the
opportunity to take advantage of DAB technology, (2) identified
Commission public policy objectives for the introduction of DAB service,
(3) proposed criteria for the evaluation of DAB models and systems, (4)
stated its intention to evaluate models for providing DAB; (5) inquired
as to whether or not there is a need for a mandatory DAB transmission
standard, and (6) asked for comments on certain DAB system testing,
evaluation and standard selection issues.

The Commission said that digital audio broadcasting has the potential to
provide enhanced sound quality, greater robustness against interference
and other impairments to the transmitted signal, and an array of new
auxiliary services. DAB technology utilizes new and efficient audio
compression techniques that reduce the amount of bandwidth required to
transmit a high-quality audio signal.

In this Notice, the Commission proposed several goals for the
proceeding: realizing the superior technical performance capabilities of
DAB technology; creating DAB opportunities for existing radio
broadcasters; ensuring that introduction of DAB does not weaken the
vitality of free over-the-air broadcast service; approving DAB systems
that are spectrally efficient; and fostering a rapid and non-disruptive
transition to DAB for broadcasters and listeners.

The Commission described two alternative DAB system models that it
wanted to evaluate in the proceeding: (1) the In-Band On Channel (IBOC)
systems, currently under development by 3 companies, that would be
designed to simultaneously broadcast both analog and digital radio
signals on broadcasters' existing AM and FM frequencies without
disrupting existing analog service, and (2) models based on allocating
new radio spectrum on different frequency bands for terrestrial DAB.

According to the system proponents, IBOC technology would provide near
CD-quality sound on FM channels and FM-quality on AM channels.
Proponents envision a "hybrid" mode of operation during which radio
stations could transmit analog and digital signals on their assigned
frequencies, eventually followed by an all-digital mode of operations.

1

Regarding the new spectrum model, the Commission specifically requested
comment on a proposal to reallocate TV channel 6 (82-88 MHz) to DAB
service at the close of the transition to digital TV. It noted that
because of existing analog television stations on Channel 6, all of
which are scheduled to cease operation after 2006 or at the end of the
Digital Television (DTV) transition period, if later, DAB service on
this spectrum would be delayed. The FCC invited comment on suggestions
for alternative DAB channel plans.

In the DAB NPRM, the Commission asked for comments on utilizing 10
specific "tentative selection criteria:" (1) enhanced audio fidelity;
(2) robustness to interference and other signal impairments; (3)
compatibility with existing analog service; (4) spectrum efficiency; (5)
flexibility; (6) auxiliary capability; (7) extensibility to future
technological advances; (8) accommodation for existing AM and FM
broadcasters; (9) coverage; and (10) implementation costs and
affordability of equipment, including costs to consumers of digital
receivers and trade-offs between receiver performance and cost.

The Commission noted that both the IBOC model and new-spectrum model
have specific benefits and drawbacks with regard to these criteria, and
that some of the criteria would conflict in certain respects. The FCC
said that it is seeking to identify the DAB model or models that best
serve the public interest, and that it would be required to balance
competing interests in makings its judgments and evaluations.

The Notice also seeks comment on the compatibility of IBOC systems and
the proposed low power FM service.

The FCC began considering the authorization of terrestrial and satellite
digital radio services in 1990. When it established rules for a
satellite digital audio radio service (DARS), it stated that it would
consider a terrestrial DAB service once it was apparent that a viable
system had been developed. In issuing today's NPRM, the Commission said
that industry proponents of DAB systems assert that their development of
IBOC DAB systems are nearing final development. The Commission said that
it is initiating this new proceeding at this time to determine whether
an IBOC model and/or a model utilizing new radio spectrum would be the
best means of promptly introducing DAB service in the United States, and
to help foster the further development of DAB systems.

Action by the Commission November 1, 1999, Notice of Proposed Rulemaking
(FCC 99-327) Chairman Kennard, Commissioners Ness, Furchtgott-Roth,
Powell and Tristani.

MM Docket No. 99-325

‑ FCC -

Mass Media Bureau Contacts: Peter Doyle 202-418-2780; William Scher
202-418-2780

Keith Larson 202-418-2600

Office of Engineering and Technology Contacts: Bruce Franca and Alan
Stillwell 202-418-2470