Digital radio via mobile networks to get too costly - study

Distributing radio via mobile networks will result in expensive costs for radio broadcasters and service providers, according to a report released by French broadcast network provider TDF. The study aimed to establish a realistic projection of the costs involved in the migration of radio from radio broadcasters to mobile networks. In 2009, average radio listening in France reached 179 minutes per day. This number is projected to remain the same in 2018, but of these 179 minutes, the average listening via mobile networks such as 3G and LTE will increase to 39 minutes per day. At present, 80 percent of all French radio listeners connect to 20 stations owned by four groups, namely Radio France, RTL, NRJ and Lagardre. The projected costs for supporting these 20 stations on the mobile network is expected to be EUR 74 million. This equates to a cost of EUR 3.7 million per station. If this figure were passed by mobile operators onto broadcasters, it would make the radio business radio unprofitable. TDF goes on to show that each extra minute of listening to radio will cost each station EUR 260 per day. TDF says its study is a clear indicator that mobile networks cannot compete against a dedicated broadcast transmission system such as the DAB family of standards. The study was published before France's roll-out of DMB radio. The initial deployment is due to start in Paris, Marseille and Nice in December.