[Federal Register Volume 69, Number 95 (Monday, May 17, 2004)]
[Proposed Rules]
[Pages 27874-27885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11118]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 2, 73, and 74

[MM Docket No. 99-325; FCC 04-99]


Digital Audio Broadcasting Systems and Their Impact on the 
Terrestrial Radio Broadcast Service

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this document, the Commission seeks comment on policies it 
may adopt to encourage broadcasters to convert from an analog-only 
radio service to a hybrid analog/digital radio service, and eventually, 
to an all-digital radio service. The Commission seeks comment on what 
changes and amendments to its technical rules are necessary to further 
the introduction of digital audio broadcasting (``DAB''). The 
Commission seeks specific comment on proposals to allow AM nighttime 
digital service. The Commission asks whether a radio station should be 
allowed to offer a high definition service, a multiplexed service, a 
datacasting service, or a combination of all of these possibilities. 
The Commission also seeks comment on which of its existing programming 
and operational rules should be applied to DAB.

DATES: Comments due June 16, 2004; reply comments are due July 16, 
2004.

[[Page 27875]]


ADDRESSES: Federal Communications Commission, 445 12th Street, SW., 
Washington, DC 20554. For further filing information, see SUPPLEMENTARY 
INFORMATION.

FOR FURTHER INFORMATION CONTACT: Ben Golant, 202-418-7111 or 
[email protected].

SUPPLEMENTARY INFORMATION: This is a synopsis of the Further Notice of 
Proposed Rulemaking portion of the Commission's Further Notice of 
Proposed Rulemaking (``FNPRM'') and Notice of Inquiry, FCC 04-99, 
adopted April 15, 2004 and released April 20, 2004. The full text of 
the Commission's FNPRM is available for inspection and copying during 
normal business hours in the FCC Reference Center (Room CY-A257) at its 
headquarters, 445 12th Street, SW., Washington, DC 20554, or may be 
purchased from the Commission's copy contractor, Qualex International, 
(202) 863-2893, Portals II, Room CY-B402, 445 12th St., SW., 
Washington, DC 20554, or may be reviewed via Internet at http://www.fcc.gov/mb.

Synopsis of the Further Notice of Proposed Rulemaking

    1. In the Digital Audio Broadcasting Report and Order (``DAB 
R&O''), 67 FR 78193-01 (Dec. 23, 2002) we selected in-band, on-channel 
(``IBOC'') as the technology enabling AM and FM radio broadcast 
stations to commence digital operations. We announced notification 
procedures that will allow operating AM and FM radio stations to begin 
digital transmissions immediately on an interim basis using the IBOC 
system developed by iBiquity Digital Corporation (``iBiquity''). We 
concluded that the adoption of a single IBOC transmission standard will 
facilitate the development of digital services for terrestrial 
broadcasters. We also stated that the dramatic improvement in digital 
audio quality would outweigh any limits on analog operations and those 
broadcasters concerned about the loss of bandwidth may nevertheless 
continue to operate in an analog-only mode. We, however, deferred 
consideration of final operational requirements and related broadcast 
licensing and service rule changes to a future date. In this Further 
Notice of Proposed Rule Making (``FNPRM''), we seek comment on what 
rule changes are necessary due to the advent of digital audio 
broadcasting (``DAB''). Through this proceeding, we seek to foster the 
development of a vibrant terrestrial digital radio service for the 
public and seek to ensure that radio broadcasters will successfully 
implement DAB.
    2. iBiquity's IBOC DAB technology provides for enhanced sound 
fidelity, improved reception, and new data services. IBOC is a method 
of transmitting near-CD quality audio signals to radio receivers along 
with new data services such as station, song and artist identification, 
stock and news information, as well as local traffic and weather 
bulletins. This technology allows broadcasters to use their current 
radio spectrum to transmit AM and FM analog signals simultaneously with 
new higher quality digital signals. These digital signals eliminate the 
static, hiss, pops, and fades associated with the current analog radio 
system. IBOC was designed to bring the benefits of digital audio 
broadcasting to analog radio while preventing interference to the host 
analog station and stations on the same channel and adjacent channels. 
IBOC technology makes use of the existing AM and FM bands (In-Band) by 
adding digital carriers to a radio station's analog signal, allowing 
broadcasters to transmit digitally on their existing channel 
assignments (On-Channel). iBiquity IBOC technology will also allow for 
radios to be ``backward and forward'' compatible, allowing them to 
receive traditional analog broadcasts from stations that have yet to 
convert and digital broadcasts from stations that have converted. 
Current analog radios will continue to receive the analog portions of 
the broadcast.
    3. The iBiquity IBOC systems evaluated by the DAB Subcommittee of 
the National Radio Systems Committee (``NRSC'') are ``hybrids'' in that 
they permit the transmission of both the analog and digital signals 
within the spectral emission mask of a single AM or FM channel. In the 
hybrid mode, the iBiquity system places digital information on 
frequencies immediately adjacent to the analog signal. The digital 
signals are transmitted using orthogonal frequency division 
multiplexing (``OFDM''). The FM IBOC system has an extended hybrid 
mode, with greater digital capacity than the hybrid mode. However, 
neither the extended hybrid FM system nor the all-digital systems have 
been tested by the NRSC.
    4. The digital system uses perceptual coding to discard information 
that the human ear cannot hear. This reduces the amount of digital 
information, and therefore the frequency bandwidth, required to 
transmit a high-quality digital audio signal. In addition, the iBiquity 
hybrid system is designed to blend to FM analog when digital reception 
fails. This blending feature eliminates a digital ``cliff effect,'' 
that would otherwise result in the complete and abrupt loss of 
reception at locations where the digital signal fails.
    5. In 1990, the Commission first considered the feasibility of 
terrestrial and satellite digital radio services. As to the former, the 
Commission concluded that the digital terrestrial systems then under 
consideration were undeveloped and that it was premature to engage in 
discussions regarding DAB standards, testing, licensing, and policy 
issues. In 1999, the Commission, recognizing that the appropriate 
technology had matured, commenced this proceeding to foster the further 
development of IBOC systems and develop a record regarding the issues 
raised by the introduction of DAB. In the DAB NPRM, the Commission, 
inter alia, proposed criteria for the evaluation of DAB models and 
systems and considered certain DAB system testing, evaluation, and 
standard selection issues.
    6. Meanwhile, the DAB Subcommittee of the NRSC conducted extensive 
laboratory tests of several DAB systems. The report of the DAB 
subcommittee of the NRSC, released on December 3, 2001, evaluated 
comprehensive field and laboratory tests of the FM IBOC system. The 
NRSC FM report concluded ``that the iBiquity FM IBOC system as tested 
by the NRSC should be authorized by the FCC as an enhancement to FM 
broadcasting in the U.S., charting the course for an efficient 
transition to digital broadcasting with minimal impact on existing 
analog FM reception and no new spectrum requirements.'' The Commission 
sought comment on the NRSC FM report and its conclusions with respect 
to the Commission's stated DAB policy goals and selection criteria. 
Thereafter, on April 16, 2002, the NRSC filed its evaluation of 
iBiquity's AM hybrid system, on which the Commission sought comment in 
a subsequent public notice. The NRSC AM report concluded that iBiquity 
``has developed an attractive solution to improve AM listening based on 
the best of today's available technology.'' NRSC recommended that 
iBiquity IBOC should be authorized as a daytime-only enhancement to AM 
broadcasting, pending further study of AM IBOC performance under 
nighttime propagation conditions. Based on the record developed in this 
proceeding at that time, iBiquity and others urged the Commission to 
permit broadcasters to initiate IBOC transmission on an interim basis 
prior to the adoption of new licensing rules and procedures.
    7. In the DAB R&O, we selected the hybrid AM and FM IBOC systems 
tested by the NRSC as de facto standards for interim digital operation. 
As of the

[[Page 27876]]

effective date of the DAB R&O, we stated we would no longer entertain 
any proposal for digital radio broadcasting other than IBOC. We stated 
that IBOC was the best way to advance our DAB policy goals. We found 
that this technology was supported in the broadcast industry and was 
the only approach that could be implemented in the near future. We also 
found that the iBiquity IBOC system was spectrum-efficient in that it 
can accommodate digital operations for all existing AM and FM radio 
stations with no additional allocation of spectrum. The NRSC tests, as 
explained in the DAB R&O, showed that both AM and FM IBOC systems offer 
enhanced audio fidelity and increased robustness to interference and 
other signal impairments. The tests also indicated that coverage for 
both systems would be at least comparable to analog coverage. We stated 
that audio fidelity and robustness will greatly improve when radio 
stations move to digital operations.
    8. AM radio has presented certain challenges and concerns in this 
proceeding. In the DAB R&O, we held that AM stations must transmit IBOC 
signals during daytime hours only, pending a favorable evaluation of AM 
IBOC under nighttime propagation conditions. Moreover, AM stations 
implementing IBOC digital transmissions may not simultaneously transmit 
analog C-QUAM AM stereo. We stated that while we were concerned about 
the loss of the ``legacy'' AM analog service, each broadcaster had the 
voluntary option of implementing IBOC. We found that the technical 
limitations of the analog technology, including narrow bandwidth and 
susceptibility to manmade and natural noise, continued to undermine its 
viability. Additionally, we found that the record in this proceeding 
presented compelling evidence that AM IBOC had the potential to 
revitalize AM broadcasting and substantially enhance radio service for 
the listening public.
    9. As of December 31, 2003, there were 11,011 commercial radio 
stations, as well as 2,552 FM educational radio stations in the United 
States. Of the commercial stations, 6,217 were FM stations and 4,794 
were AM stations. There were also 3,834 FM translator and booster 
stations. As of March 2004, there were 3,285 owners of commercial radio 
stations across the nation. Also on that date, there were 56 radio 
station owners with 20 or more stations.
    10. Currently, 108 million U.S. households, or 98% of all U.S. 
households, have a radio device. We estimate that there are, on 
average, 5 radios per household or about 500 million receivers. We also 
estimate that by the end of 2003, there were about 225 million motor 
vehicles on the road with radios. There are also millions of radios in 
use in other vehicles, such as commercial trucks and watercraft, as 
well as commercial establishments such as restaurants and hotels. All 
in all, we estimate that there are nearly 800 million radio sets in use 
in the United States.
    11. Terrestrial radio broadcast service competes against new 
digital audio technologies offering consumers enhanced sound fidelity 
and other services, including satellite digital audio radio service. 
For example, Sirius Satellite Radio Inc. (``Sirius'') and XM Satellite 
Radio Holdings (``XM'') have built subscription radio services that 
provide national programming, delivering up to 100 channels of digital 
music, news, and entertainment directly from satellites to vehicles, 
homes, and portable radios in the United States. Each company holds one 
of the two licenses issued by the Commission to build, launch, and 
operate a national satellite radio system. Both companies launched 
their services in 2001. XM has about 1,680,000 subscribers and Sirius 
has over 260,000 subscribers.
    12. As of October 1, 2003, over 280 radio stations encompassing 
more than 100 markets have licensed iBiquity's technology and have 
begun digital audio broadcasting or are in the process of converting. 
Cumulatively, these markets include over 145 million listeners or 
nearly two-thirds of the Arbitron-ranked, listening public. Within each 
of the six cities--New York, Los Angeles, Chicago, San Francisco, Miami 
and Seattle `` previously identified by iBiquity as launch markets for 
DAB, a minimum of ten stations and up to 18 stations have already 
licensed iBiquity's technology. Stations in 35 states as well as the 
District of Columbia and Puerto Rico have demonstrated their commitment 
to digital audio broadcasting as well. Radio manufacturers have slowly 
begun selling digital radio receivers directly to the public this year.
    13. According to iBiquity, the estimated costs for a station to 
implement its hybrid IBOC system range from $30,000 to $200,000, with 
an average cost of $75,000. Conversion costs vary depending on the age 
and other characteristics of a station's transmitter plant and studio 
equipment. For example, most new broadcast transmitters are IBOC-
compatible. In contrast, some stations may need to replace older 
transmitters, studio-transmitter links, or studio equipment in order to 
transmit IBOC. Radio broadcasters can implement IBOC using their 
existing towers, antennas, and transmission lines, making the 
technology inherently less costly than, for example, the digital 
television conversion. In addition, broadcasters may begin interim IBOC 
operations on a voluntary basis, deferring costs as they deem 
appropriate.
    14. iBiquity submitted test results for both AM and FM all-digital 
modes. The all-digital tests were not performed under the auspices of 
the NRSC, unlike the tests on iBiquity's hybrid IBOC systems. iBiquity 
requested that the Commission endorse its all-digital systems as well 
as the hybrid systems. In the DAB R&O, we recognized that although a 
fully digital terrestrial radio service is the ultimate goal, it was 
premature to endorse systems that have not been subject to 
comprehensive and impartial testing. We also stated that the adoption 
of an all-digital standard requires the consideration of novel and 
complex technical and policy issues that arise only when the 
constraints of ``designing around'' the legacy analog transmission 
standard are eliminated, and we therefore deferred any action on these 
matters. We recognize that the standard setting bodies have much work 
to do on an all-digital radio system and we have no standard to 
evaluate or seek comment upon. Instead, we seek comment on the pace of 
the analog to hybrid radio conversion and the possibility of an all-
digital terrestrial radio system in the future.
    15. Congress codified December 31, 2006, as the analog television 
termination date, but also adopted certain exceptions to that deadline. 
There is no analogous Congressional mandate for the termination of 
analog radio broadcasting. We have not considered a date certain when 
radio stations should commence digital broadcast operations because 
radio stations are not using additional spectrum to provide digital 
service, as is the case with digital television, and band-clearing is 
not required by statute. Based on these factors, we see no immediate 
need to consider mandatory transition policies of the type contemplated 
with respect to DTV. However, we recognize the spectrum efficiencies 
and related new service opportunities inherent in the IBOC system. We 
also want to enable terrestrial radio broadcasters to better compete 
with satellite radio services now in operation. As such, we seek 
comment on what changes in our rules would likely encourage radio 
stations to convert to a hybrid or an all-digital format.

[[Page 27877]]

    16. We ask whether the government, the marketplace, or both, should 
determine the speed of conversion from analog to hybrid, and 
eventually, to digital radio service, at this time. We understand that 
the interests of radio listeners are paramount and we do not want to 
disadvantage any member of the public by forcing the purchase of new 
radios. In many ways, the move to DAB is similar to the transition from 
black and white to color television in the 1950s and 1960s, where 
consumers could continue to receive local television signals even 
though they may not have had a color television to receive programming 
in color. In the color television transition, marketplace forces 
stimulated the introduction of color sets. As a result, television 
producers eventually ended program production in a black and white 
format. Here, we anticipate that the more DAB receivers sold, the more 
radio stations will have an incentive to convert to DAB, and the cycle 
will repeat itself until all consumers have DAB receivers. We intend to 
rely on the marketplace to the greatest extent feasible. However, if 
the marketplace falters, we seek comment on other means to advance the 
introduction of DAB. In this context, we ask whether we should conduct 
periodic reviews, in terms of DAB receivers on the market and the 
number of DAB stations on-the-air, to help us decide what is in the 
best interests of the public and the broadcasting industry. If so, how 
frequently should we initiate such reviews?
    17. The DAB system provides broadcasters with new flexibility and 
new capabilities. For example, DAB allows a radio station to scale the 
digital portion of its hybrid FM broadcast from 96 kbps to lower rates 
in order to set aside capacity for other associated services. The FM 
system can be scaled from 96 kbps to 84 kbps or 64 kbps to obtain 12 to 
32 kbps for other services. The system also allows broadcasters to use 
the ``extended hybrid modes'' whereby the digital sidebands are 
extended closer to the analog signal. This allows the broadcaster to 
obtain 12.5 to 50 kbps of capacity for other services. Broadcasters 
will be capable of providing through DAB not only a vastly improved 
high definition audio signal, but also multiple streams of digital 
audio programming. In addition, the system is capable of non-broadcast 
uses that are non-audio and/or subscription-based in nature. A flexible 
DAB service policy would likely increase the ability of broadcasters to 
compete in an increasingly competitive marketplace, and would allow 
them to serve the public with new and innovative services. Flexibility 
could also allow for a more rapid conversion to digital radio. While we 
tentatively find that a flexible service policy is in the public 
interest, we seek comment on the following issues before making a final 
determination.
    18. High Definition Digital Audio Broadcasting. We seek comment on 
whether or not we should require broadcasters to provide a minimum 
amount of high definition audio and, if so, what minimum amount should 
be required. The public may be served by such a policy because radio 
stations would provide a free programming alternative to satellite 
radio and compact discs. We also seek comment on the amount of capacity 
necessary to allow radio stations to broadcast a high quality digital 
signal and permit the introduction of new datacasting and supplemental 
audio services. If we adopt a high definition service requirement, 
should we have separate rules for AM and FM stations?
    19. Digital Audio Multicasting. The DAB system permits a radio 
station to broadcast multiple audio programming services within its 
assigned channel. National Public Radio in fact, is now testing such a 
broadcasting model under the auspices of its ``Tomorrow Radio 
Project.'' DAB makes it possible for hybrid and digital radio stations 
to air not only more music programming, but also public safety services 
(e.g., national security announcements), assisted living services 
(e.g., radio reading services), non-English language programming, and 
news services to underserved populations. We seek comment on how many 
audio streams a radio station can transmit using IBOC without causing 
interference or degrading audio quality. Will the availability of 
additional audio streams spur public demand for digital audio 
receivers? We seek comment on the ways broadcasters can use this 
technology to provide greater access to radio for all people. How can 
the availability of additional audio streams further our diversity 
goals, particularly for people with disabilities and minority or 
underserved segments of the community? We tentatively conclude that 
adopting DAB service rules that encourage more audio streams would 
promote program diversity, and that, once the Commission adopts a 
policy in this area, radio stations will no longer need to obtain 
experimental authority to broadcast multiplexed digital programming.
    20. We seek comment on to what extent we should permit radio 
stations to lease unused or excess airtime to unaffiliated audio 
programmers. In this context, an unaffiliated entity would schedule the 
programming output of a particular digital audio stream for a period of 
time under a contract with the licensee. Radio stations may benefit 
from leasing unused or excess airtime because they would have 
additional funds to invest into new programming, which in turn, would 
benefit the public. We seek comment on whether our diversity goals will 
be furthered if we allow independent programmers to lease excess 
capacity from broadcast licensees? How should current regulations, such 
as our sponsorship identification rules, be applied in this situation? 
Should the licensee be responsible for ensuring the fulfillment of all 
regulatory obligations, as is the case for digital television stations? 
How does section 310(d) of the Act, regarding transfers of control, 
apply in this situation? Moreover, how would the Commission's broadcast 
ownership limits and attribution rules be affected if an unaffiliated 
programmer, that is also the licensee of another station in the same 
market, leases one of the additional audio streams? Should there be an 
overall limit to the amount of programming time a particular radio 
station can lease to others?
    21. Section 73.277 of the Commission's rules pertains to the 
permissible transmissions of an FM licensee. Under our rules, an FM 
broadcast licensee or permittee cannot enter into any agreement to 
supply on its main channel background music or other subscription 
service (including storecasting) for reception in the place of business 
of any subscriber. We seek comment on how this rule should apply to 
digital audio multicasting. Specifically, should this rule be applied 
to any additional audio services that may be broadcast or should such 
additional audio channels be exempt from the rule?
    22. Datacasting. All FM analog stations are authorized to transmit 
secondary services via an automatic subsidiary communications 
authorization (``SCA'') under Sec.  73.295 of the Commission's rules. 
Subsidiary communication services are those transmitted on a subcarrier 
within the FM baseband signal, not including services that enhance the 
main program broadcast service or exclusively relate to station 
operations. Subsidiary communications include, but are not limited to, 
services such as functional music, specialized language programs, radio 
reading services, utility load management, market and financial data 
and news, paging and calling, traffic control signal switching, 
bilingual television audio, and point to point or

[[Page 27878]]

multipoint messages. Some FM broadcasters currently provide emergency 
alert system notifications and paging functions.
    23. Section 73.593 of the Commission's rules pertains to subsidiary 
communications services broadcast by noncommercial educational FM radio 
stations. Under our rules, the licensee of a noncommercial educational 
FM station is not required to use its subcarrier capacity, but if it 
chooses to do so, it is governed by the SCA rules for commercial FM 
stations regarding the types of permissible subcarrier uses and the 
manner in which subcarrier operations are conducted. A significant 
difference from the commercial FM SCA rules, however, is the 
requirement that the remunerative use of a noncommercial educational 
station's subcarrier capacity not be detrimental to the provision of 
existing or potential radio reading services for the blind or otherwise 
inconsistent with its public broadcasting responsibilities.
    24. Section 73.127 of the Commission's rules is analogous to 
Sec. Sec.  73.295 and 73.593 and discusses the use of multiplex 
transmissions by AM stations. Specifically, the licensee of an AM 
broadcast station may use its AM carrier to transmit signals not 
audible on ordinary consumer receivers for both broadcast and non-
broadcast purposes. AM carrier services are of a secondary nature under 
the authority of the AM station authorization, and the authority to 
provide such communications services may not be retained or transferred 
in any manner separate from the station's authorization. The grant or 
renewal of an AM station permit or license is not furthered or promoted 
by proposed or past multiplexed transmission service. The licensee must 
establish that the broadcast operation is in the public interest wholly 
apart from the subsidiary communications services provided. For both AM 
and FM services, the licensee must retain control over all material 
transmitted in a broadcast mode via the station's facilities and has 
the right to reject any material that it deems inappropriate or 
undesirable.
    25. iBiquity, in association with broadcasters and equipment 
manufacturers, has developed first generation IBOC data services. Using 
an established standard ID3 format, information services will provide 
listeners more information on the song, CD title, and artist. In 
addition, information and host profiles will complement audio 
commercials and talk radio formats. In the future, Synchronized 
Multimedia Integration Language (``SMIL''), a protocol used by iBiquity 
as the foundation for Advanced Application Services (``AAS''), will 
provide the foundation for the creation and delivery of innovative DAB 
services. Such advanced services will include commercial applications 
like: (1) Enhanced information services such as breaking news, sports, 
weather, and traffic alerts delivered to DAB receivers as a text and/or 
audio format; (2) listener controlled main audio services providing the 
ability to pause, store, fast-forward, index, and replay audio 
programming via an integrated program guide with simplified and 
standard user interface options; and (3) supplementary data delivery 
that will spur the introduction of in-vehicle telematics, navigation 
and rear-seat entertainment programming.
    26. We seek comment on whether we should adopt a flexible policy 
permitting radio stations to produce and distribute any and all types 
of datacasting services. Alternatively, are there certain types of 
services that a radio station must provide, such as enhanced emergency 
alerts, before it is permitted to offer other data services? Are there 
certain services that should be prohibited? How should Sec. Sec.  
73.127, 73.295, and 73.593 of our rules be amended? How should our 
sponsorship identification rules apply? As for noncommercial radio 
stations, we seek comment on what SCA services would be inconsistent 
with the public broadcasting responsibilities of hybrid or all-digital 
noncommercial educational stations.
    27. DAB interference with analog SCA services has been an issue in 
this proceeding. iBiquity performed field tests which showed that, in 
some circumstances, analog SCA receivers may receive significant new 
interference from IBOC stations operating on second-adjacent channels. 
Following the tests, NPR commissioned a study using average receiver 
performance to estimate the number of listeners potentially affected by 
additional interference from IBOC in the top 16 radio markets. The 
results show that, on average, additional interference from IBOC could 
affect 2.6 percent of eligible receivers within an FM station's service 
area. In the DAB R&O, we raised concerns about this level of 
interference and its potential impact on radio reading services. We now 
seek comment on measures to protect established SCA services from 
interference.
    28. Subscription Services. Radio stations may wish to offer certain 
digital audio or data content under a subscription model. In this 
context, subscription services may be available for a fee or the 
listener may simply need a code to access the service. We seek comment 
on whether to permit such a use of the broadcast spectrum. Should we 
allow for subscription services as long as the licensee provides at 
least one free digital audio stream, as we do for digital television? 
One proposal would be to permit subscription services as long as they 
do not derogate the free services a radio station broadcasts. Section 
336 of the Act requires the Commission to collect fees from digital 
television stations if they use their spectrum to offer subscription 
ancillary and supplementary services. However, there is no analogous 
requirement for digital audio broadcasting. We seek comment on whether 
we should impose spectrum fees for that portion of the spectrum used by 
broadcasters to provide subscription services. Does the Commission have 
the authority to impose such fees? Under what provisions? What interest 
would such a fee serve? What factors should the Commission consider in 
setting the fee level?
    29. Equipment issues. According to iBiquity, its systems provide 
extensibility in that the first generation receivers are designed to 
operate both in the interim hybrid and in all-digital modes. In the DAB 
R&O, we stated that this is an area in which definitive evaluations can 
only be undertaken after we resolve a number of all-digital issues, 
such as issues relating to signal architecture. Recognizing the 
flexibility of the IBOC model, and the possibility of new auxiliary 
services, we stated that we will address receiver issues in more detail 
when a formal standard is considered. We seek comment on whether the 
issues raised, and the policies proposed, in this FNPRM require us to 
address receiver issues at this stage of DAB development. For example, 
how would the adoption of a high definition audio requirement affect 
receiver manufacturers? Would current receiver specifications need to 
be changed if we permit multicasting or subscription services?
    30. It is incumbent upon the Commission to ensure that broadcasters 
serve the ``public interest, convenience and necessity.'' Broadcasters 
are required to air programming responsive to community needs and 
interests and have other service obligations. We remain committed to 
enforcing our statutory mandate to ensure that broadcasters serve the 
public interest. Our current public interest rules, including those 
implementing specific statutory requirements, were developed for 
broadcasters essentially limited by technology to a single, analog 
audio programming service and minor

[[Page 27879]]

ancillary services. The potential for more flexible and dynamic use of 
the radio spectrum, as a result of IBOC, gives rise to important 
questions about the nature of public interest obligations in digital 
broadcasting.
    31. As stated above, our future rules may allow broadcasters to use 
their radio frequencies to provide a high definition audio service, 
multiple standard definition audio services and perhaps other services, 
some of which may be on a subscription basis. Digital broadcast 
licensees have public interest obligations. We seek comment on how to 
apply such obligations to DAB. For example, if a broadcaster chooses to 
provide multiple digital audio streams, how should public interest 
obligations apply? We also seek comment on how certain public interest 
obligations may be applied to subscription-based DAB services.
    32. Community Needs. One of a broadcaster's fundamental public 
interest obligations is to air programming responsive to the needs and 
interests of its community of license. Another well recognized 
obligation is for a broadcast licensee to respond to the public's need 
for emergency information. Digital technology may allow a broadcaster 
to better fulfill these obligations. We seek comment on ways that a 
broadcaster can implement digital technology to better and more fully 
meet the needs of its community of license. How does the ability to 
multicast affect a broadcaster's ability to fulfill these public 
interest obligations?
    33. Local Programming. Localism has been a core requirement of 
broadcast licensees since the inception of the Act 70 years ago. We 
seek comment on how digital technology can be used to promote localism 
in the terrestrial radio service. For example, we seek comment on 
whether to impose a minimum local origination requirement on digital 
radio transmissions. If a radio station multiplexes its signal, should 
each audio stream have a local component? If so, how much? Should that 
local component include some news or other public affairs programming? 
In the alternative, should we allow a radio station to carry national 
programming on one or more of its streams if it devotes one of its 
streams to local programming?
    34. We seek comment on how DAB, and future digital audio services, 
mesh with current statutory requirements, obligations, and 
prohibitions. We ask whether the change to digital audio broadcasting 
justifies changes in the Commission's rules and regulations that 
implement the following provisions and regulations. We also seek 
comment on any other specific statutory provisions or regulations, not 
listed below, that may be affected.
    35. Political Broadcasting. Sections 312 and 315 of the Act contain 
the political advertising rules for broadcast stations. Section 
312(a)(7) of the Act, as amended, requires broadcasters to allow 
legally qualified candidates for federal office reasonable access to 
their facilities. Section 315(a) of the Act, as amended, provides 
candidates with equal opportunities for broadcast time. We seek comment 
on how each of these political broadcasting rules should be applied in 
the DAB context. We also seek comment more generally on whether DAB can 
enhance political discourse and candidate access to radio in other 
ways.
    36. Emergency Alert System. Section 73.1250 of the Commission's 
rules addresses the broadcasting of emergency information. Under our 
rules, and if requested by government officials, a station may, at its 
discretion, and without further FCC authority, transmit emergency 
point-to-point messages for the purpose of requesting or dispatching 
aid and assisting in rescue operations. If the Emergency Alert System 
(``EAS'') is activated for a national emergency while a local area or 
state emergency operation is in progress, the national level EAS 
operation must take precedence. AM stations may, without further FCC 
authority, use their full daytime facilities during nighttime hours to 
broadcast emergency information when necessary to the safety of life 
and property, in dangerous conditions of a general nature, and when 
adequate advance warning cannot be given with the facilities 
authorized. All emergency alerts must be conducted on a noncommercial 
basis, but recorded music may be used to the extent necessary to 
provide program continuity. We tentatively conclude that it is in the 
public interest to apply the rules provided in Sec.  73.1250 to all 
audio streams broadcast by a radio station. The purpose of the rule is 
to fully inform the public of major emergencies and this mandate can 
only be fulfilled if it is broadly applied.
    37. We realize that by requiring AM and FM radio broadcast stations 
to comply with Sec.  73.1250 of our rules for all audio streams (both 
analog and DAB), such stations may have to update and/or replace their 
EAS decoders to accommodate the digital portion of the stream. 
Nevertheless, we believe that access to emergency information is 
critical. We seek comment on the costs and timing involved in such 
compliance. Comments should specifically address the costs to the 
broadcasters relevant to ensuring that the DAB portion of the audio 
stream is compliant with Sec.  73.1250 simultaneous with a station's 
rollout of DAB. Comments should also address the costs to equipment 
vendors relevant to ensuring that all product development and related 
certification by the FCC would be complete in time to allow 
broadcasters to roll out DAB that is compliant with our emergency alert 
rules.
    38. Station Identification. Under Sec.  73.1201 of the Commission's 
rules, broadcast station identification announcements must be made at 
the beginning and end of each time of operation, and as close to the 
hour as feasible, at a natural break in program offerings. Official 
station identification consists of the station's call letters 
immediately followed by the community or communities specified in its 
license as the station's location. The name of the licensee or the 
station's frequency or channel number, or both, as stated on the 
station's license may be inserted between the call letters and station 
location. We seek comment on whether the station identification rules 
would apply to all digital audio content of a radio station. How should 
a station identify audio channels other than the main channel? Should 
there be separate call letters for separate streams? There are special 
rules for simultaneous AM (535-1605 kHz) and (1605-1705 kHz) 
broadcasts. If the same licensee operates an AM broadcast station in 
the 535-1605 kHz band and an AM broadcast station in the 1605-1705 kHz 
band with both stations licensed to the same community and 
simultaneously broadcasts the same programs over the facilities of both 
such stations, station identification announcements may be made jointly 
for both stations for periods of such simultaneous operations. We seek 
comment on how any proposed rule should differ, if at all, for AM radio 
stations.
    39. There are a host of other programming and operational rules 
that are relevant here. These include: (1) Sec. Sec.  73.132 and 
73.232--territorial exclusivity for AM and FM stations; (2) Sec.  
76.1208--broadcast of taped or recorded material; (3) Sec.  73.1740--
minimum hours of operation; (4) Sec.  76.1212--sponsorship 
identification; (5) Sec.  76.4180--payment disclosure; (6) Sec.  
73.4055--cigarette advertising; and (7) Sec.  508 of the Act--
prohibited contest practices. We tentatively conclude that the 
conversion to DAB will not require changes to the content of these 
regulations. However, we seek comment on how the rules should be 
applied to

[[Page 27880]]

multicast services and whether the requirements apply to subscription 
services.
    40. AM Definitions. Section 73.14 of the Commission's rules 
contains the AM broadcast definitions. For example, the definition of 
AM broadcast channel is ``the band of frequencies occupied by the 
carrier and the upper and lower sidebands of an AM broadcast signal 
with the carrier frequency at the center. Channels are designated by 
their assigned carrier frequencies. The 117 carrier frequencies 
assigned to AM broadcast stations begin at 540 kHz and progress in 10 
kHz steps to 1700 kHz.'' Numerous references are also made to amplitude 
modulation in Sec.  73.14. We seek comment on what changes in this 
section are necessary to accommodate the introduction of digital AM 
service.
    41. AM Nighttime Operations. Two characteristics of the AM service 
have posed challenges to the development of AM IBOC. First, the nominal 
audio bandwidth of AM radio is insufficient to pass a full-fidelity 
monaural audio signal. Second, AM propagation characteristics vary 
drastically between day and night, resulting in two completely 
different allocation schemes (and, consequently, different daytime and 
nighttime facilities for most AM stations). During daytime hours, AM 
signals propagate principally via currents conducted through the earth, 
called groundwave propagation. Useful groundwave signals have a range 
of only about 200 miles for the most powerful AM stations, and less 
than 50 miles for many stations. After sunset, changes in the upper 
atmosphere cause the reflection of AM signals back to earth, resulting 
in the transmission of skywave signals over paths that may extend 
thousands of miles. Nighttime skywave propagation results in a much 
greater potential for inter-station interference. With the exception of 
powerful clear channel stations and relatively low-power local 
stations, many AM stations are required to cease operation at sunset. 
Most of those that remain on the air at night must reduce power or use 
directional antenna systems, or both.
    42. In the DAB R&O, we noted NRSC's finding that ``[t]he design of 
the AM IBOC system is such that its addition to an AM broadcast signal 
will cause a reduction in the host analog signal-to-noise performance 
[i.e., an increase in background noise, perceived as degradation in 
audio quality] at the receiver.'' The NRSC stated that if the passband 
of the receiver extends beyond 5 kHz, the receiver will detect the 
secondary digital carriers, which extend from approximately 5 kHz to 10 
kHz above and below the AM carrier frequency. The test results 
indicated, however, that audio quality should not be degraded 
sufficiently to impact listening. With regard to the effect on other 
stations, the NRSC concluded that introduction of hybrid AM IBOC should 
not cause additional co-channel interference. Because the IBOC digital 
signal shares spectrum with the analog signal of a first adjacent AM 
station, however, the NRSC concluded that first adjacent channel 
compatibility is a significant issue for AM IBOC. We found that the 
hybrid AM IBOC system proposed by iBiquity had the potential to provide 
the benefits of digital broadcasting within the framework of the 
existing AM allocation scheme. We nevertheless agreed with NRSC that 
significant uncertainty remains with respect to the potential for first 
adjacent channel interference under nighttime skywave propagation 
conditions. We therefore deferred authorizing nighttime use of AM IBOC 
until further testing has been completed.
    43. NAB, through its Radio Board, recently submitted 
recommendations to the Commission concerning nighttime operation of AM 
IBOC. NAB suggests several steps the Commission should take regarding 
AM digital service: (1) The current interim authorization for IBOC 
service should be extended to allow AM IBOC nighttime broadcasts; (2) 
nighttime authorization should extend to all AM stations currently 
authorized for nighttime broadcasts; (3) nighttime authorization should 
be established on a blanket basis for all digital AM stations rather 
than requiring broadcasters to seek a separate nighttime authorization; 
and (4) the Commission should address instances of unexpected levels of 
interference on a case-by-case basis. NAB also suggested that, in the 
event that there are reductions in stations' primary nighttime analog 
service areas, the Commission should take steps to address those 
problems. NAB states that its suggested measures will allow AM stations 
to ``better understand the opportunities and challenges of IBOC'' and 
will provide incentives for receiver manufacturers to market IBOC 
equipment. The staff has issued a Public Notice seeking comment on 
NAB's recommendations and proposing that AM stations who wish to 
implement nighttime IBOC service immediately do so under the 
Commission's STA procedures. We request comment here on expansion of 
interim IBOC procedures to allow all AM stations to implement IBOC 
service at night without prior authority, as NAB proposes. How else can 
we help facilitate improvement in the IBOC standard so that AM digital 
radio service can be received throughout the day and night?
    44. Interference. In the interest of striking a balance between 
interference concerns and the strong interest of maximizing coverage, 
we adopted in the DAB R&O, a three-pronged approach to the issue of 
primary sideband power levels for AM. This approach was designed to 
provide a streamlined process to safeguard current reception of analog 
signals. First, we authorized AM stations to commence operation with 
the hybrid AM IBOC system tested by the NRSC, in accordance with the 
special temporary authorization and notification procedures specified 
in the DAB R&O. Second, when interference problems are anticipated 
prior to commencement of interim IBOC operations, or when actual 
interference occurs, we permit licensees to adjust the power level of 
the primary digital subcarriers downward by as much as 6 dB. Licensees 
are required to notify the Commission of any such power adjustments. 
Third, in cases in which the hybrid AM IBOC operation of one station 
results in complaints of actual interference within another station's 
protected service contour and the respective licensees are unable to 
reach agreement on a voluntary power reduction, we may order power 
reductions for the primary digital carriers or, in extreme cases, 
termination of interim IBOC operation. In such cases, an affected 
station may file an interference complaint with the Commission. This 
complaint must describe any test measures used to identify IBOC-related 
interference and fully document the extent of such interference. The 
Media Bureau is charged with resolving each complaint within ninety 
days. In the event the Bureau fails to issue a decision within ninety 
days of the date on which a complaint is filed, we held that the 
interfering station shall reduce immediately its primary digital 
subcarrier power level by 6 dB. We seek comment on whether this 
complaint process is working, and, if so, whether we should make the 
process permanent when final IBOC standards are adopted. Are there any 
related instances where the Commission may delegate authority to the 
Media Bureau to resolve matters in an expeditious manner?
    45. AM Stereo. Section 73.128 of the Commission's rules sets forth 
the parameters for AM stereophonic broadcasting. Under this rule, an AM 
broadcast station may, without specific authority from the Commission, 
transmit stereophonic programs upon

[[Page 27881]]

installation of type-accepted stereophonic transmitting equipment and 
the necessary measuring equipment to determine that the stereophonic 
transmissions conform to specific modulation characteristics. The 
Commission's existing rules favor stations providing AM stereo. For 
example, stations in the expanded AM band are required to adopt stereo 
broadcasts for various reasons. Because the DAB system is not designed 
to work with AM stereo broadcasts, stations converting to digital must 
discontinue stereo for their analog broadcasts. We seek comment on what 
rule changes are necessary in this context.
    46. FM Definitions. Section 73.310 of the Commission's rules 
contains the technical definitions specific to the FM service. For 
example, an FM broadcast channel is defined as a band of frequencies 
200 kHz wide and designated by its center frequency. Channels for FM 
broadcast stations begin at 88.1 MHz and continue in successive steps 
of 200 kHz to and including 107.9 MHz. We seek comment on which 
definitions, including the definition of FM broadcast channel, need to 
be changed or modified because of the introduction of DAB.
    47. FM Operating Power. Section 73.211 of the Commission's rules 
addresses power and antenna height requirements for FM stations. 
Generally, analog FM stations must operate with a minimum effective 
radiated power (``ERP'') as follows: (1) The minimum ERP for Class A 
stations is 0.1 kW; (2) the ERP for Class B1 stations must exceed 6 kW; 
(3) the ERP for Class B stations must exceed 25 kW; (4) the ERP for 
Class C3 stations must exceed 6 kW; (5) the ERP for Class C2 stations 
must exceed 25 kW; (6) the ERP for Class C1 stations must exceed 50 kW; 
and (7) the minimum ERP for Class C and C0 stations is 100 kW. Class C0 
stations must have an antenna height above average terrain (``HAAT'') 
of at least 300 meters (984 feet). Class C stations must have an 
antenna height above average terrain of at least 451 meters (1480 
feet). Stations of any class except Class A may have an ERP less than 
that specified in Sec.  73.211, provided that the reference distance 
exceeds the distance to the class contour for the next lower class. 
Class A stations may have an ERP less than 100 watts provided that the 
reference distance equals or exceeds 6 kilometers.
    48. Outside of their assigned channels, the emissions of analog FM 
radio signals must be attenuated below the level of the unmodulated 
carrier frequency: (1) By at least 25 dB at any frequency removed from 
the center frequency by 120 kHz up to 240 kHz; (2) by at least 35 dB at 
any frequency removed from the center frequency by 240 kHz up to and 
including 600 kHz; and (3) by at least 43 dB + 10 log (power, in watts) 
dB on any frequency removed by more than 600 kHz from the center 
frequency. This emission mask ensures that FM broadcast emissions are 
reasonably confined within the 200 kHz channel width. The digital 
component of the FM IBOC system operates 20 dB below the level of the 
analog carrier. When there is no analog carrier (i.e., all digital 
operations), it is not possible to set the digital power relative to 
the analog power level. Rather than specifying digital as 20 dB below 
analog, it may be preferable to set an absolute level for digital 
carriers that could be calculated without reference to analog. We seek 
comment on the appropriate means to measure and calculate power levels. 
We also seek comment on the appropriate measurement instruments for 
this exercise. How should any new rule take into account combiner and 
filter loss?
    49. Radio stations with antennas at high elevations operate at 
relatively low power. Because the IBOC signal is transmitted at a 
fraction of analog power (1% in the FM case), the digital signals can 
be extremely low power in certain cases. In some cases, these digital 
signals may fall below the noise floor and become unlistenable. We seek 
comment on how to address this matter. Specifically, should the 
Commission establish a minimum digital power level, even if that would 
exceed 20 dB below the analog signal? Commenters should submit evidence 
to substantiate recommended power levels.
    50. TV Channel 6. Section 73.525 of the Commission's rules 
addresses interference protection for TV Channel 6. An affected TV 
Channel 6 station is a TV broadcast station authorized to operate on 
Channel 6 that is located within certain distances of a noncommercial 
educational FM station operating on Channels 201-220. We seek comment 
on what, if any, rule changes are necessary to protect TV Channel 6 
from interference caused by digital radio operations. We also ask 
whether new rules need to be developed to protect television station 
licensees that have converted to digital operations and are assigned to 
Channel 6 under our DTV Table of Allotments.
    51. Antennas. The initial grant of interim IBOC authority 
restricted stations to use of facilities similar to those evaluated by 
the NRSC. As a result, stations were restricted to transmission systems 
that combine the digital and analog signals into one antenna. When a 
single antenna is used for IBOC, the analog and digital FM signals may 
be combined after amplification (high-level combining), a method which 
results in substantial power losses for the digital signal. Stations 
with lower effective radiated power may combine the analog and digital 
signals before amplification (low-level combining), in which case the 
transmitter efficiency is reduced. Many broadcasters have expressed 
interest in using separate antennas for the analog and digital signals. 
Consequently, the NAB convened an ad hoc technical group to determine 
whether broadcasters could use this approach without causing 
interference to the host station's analog signal or to other FM 
stations. Based on the completed field tests, the NAB report proposed 
that the Commission permit FM stations implementing IBOC operations to 
use separate antennas for digital transmissions provided that certain 
criteria are met. On December 9, 2003, the Media Bureau released a 
Public Notice seeking comments on the test results, conclusions, and 
recommendations in the report of the NAB ad hoc technical committee. 
The Media Bureau authorized the use of a dual antenna system under 
certain conditions earlier this year. While this issue has previously 
been addressed by the staff, we seek further comment on this matter and 
ask what other policies we may adopt that would provide broadcasters 
with the flexibility to make changes in their antenna configurations. 
For example, should we grant delegated authority to the Media Bureau to 
approve certain types of antenna modifications? Should we adopt a 
presumptive approach to antenna modifications by which a station can 
make any changes as long as it clears the change with adjacent 
stations?
    52. Predicted Coverage. Section 73.313 of the Commission's rules 
concerns FM predicted coverage. With the analog FM system, all 
predictions of coverage are made without regard to interference and 
only on the basis of estimated field strengths. We seek comment on 
whether this rule needs to be modified to encompass the different 
nature of digital audio transmissions. If so, what should the rule 
require?
    53. FM Booster and Translator Stations. FM booster and FM 
translator stations provide important service to many mountainous and 
rural areas of the country, where few other radio signals are 
available. By their nature, the translator and booster services present 
unique challenges for IBOC operation. An FM translator station receives 
a signal from its primary FM station and

[[Page 27882]]

converts the signal for re-broadcasting on a different FM frequency. An 
FM booster station relays the primary station's programming on the same 
FM frequency. The implementation of IBOC should not affect the ability 
of translator and booster stations to continue the analog service they 
now provide. The record in this proceeding does not yet clearly 
establish, however, whether booster and translator stations will be 
able to relay the digital portion of IBOC signals. Tests performed by 
iBiquity indicate that an FM booster station will be able to relay the 
primary station's hybrid IBOC signal provided the booster is within 14 
miles of the primary station. We received no test results or comments 
regarding use of IBOC by FM translator stations. Although some 
translator stations may be able to retransmit the digital component of 
an IBOC signal, we expect that many translator stations will need 
equipment modifications to do so. For these reasons, we solicit comment 
on issues relating to FM translator and booster stations. For example, 
should our rules facilitate the establishment of additional digital 
boosters to fill in areas with poor analog coverage? Will stations 
converting their main signal be required to simultaneously convert 
their boosters and/or translators?
    54. Section 74.1231(b) currently restricts commercial FM 
translators not providing ``fill-in'' service from using alternate 
means of signal delivery; that is, such translators must rely on 
direct, over-the-air reception of the primary FM station. However, this 
may not be feasible for IBOC transmission. We seek comment on whether 
this rule should be modified for IBOC operation. How will this affect 
broadcast localism? If translators are allowed to use alternate 
delivery means, should there be some geographic or other limits to the 
delivery of the digital signal to the translator?
    55. Standards. In the DAB R&O, we stated that the adoption of a 
standard will facilitate the rollout of digital audio broadcasting. We 
further stated that the Commission's support of a standard-setting 
process was designed to provide regulatory clarity and to compress the 
timeframe for finalizing the rules and policies that will affect the 
ultimate success of DAB. We solicited the assistance of a broad cross-
section of interested parties in developing a formal AM and FM IBOC 
standard through a public and open standard-setting process. We stated 
that we were encouraged by the action of the NRSC to form an IBOC 
standards development working group, formally initiating a process 
designed to establish AM and FM IBOC standards. We encourage this group 
to provide us with significant input at this stage of the proceeding 
and seek comment from other parties on any such submissions.
    56. Patents. In earlier stages of this proceeding, many parties 
stated that adoption of iBiquity's IBOC system would require the use of 
certain patented technologies. They expressed concern that the 
Commission's endorsement of the iBiquity system will create an 
opportunity for these patent holders to impose excessive licensing fees 
on broadcasters and listeners who have no alternative source for the 
technology. In response, iBiquity agreed to abide by the guidelines 
common to open standards, which require that licenses be available to 
all parties on fair terms. iBiquity also stated that it would adhere to 
the Commission's patent policy. The Commission stated that its decision 
to permit interim operations during the pendency of this proceeding 
provided an opportunity to assess whether iBiquity and other patent 
holders were entering into licensing agreements under reasonable terms 
and conditions that are demonstrably free of unfair discrimination. The 
Commission stated that it would monitor this situation and seek 
additional comment as warranted. We seek comment on iBiquity's conduct 
during the interim period. We also seek comment on whether this matter 
needs to be further addressed now or whether we should wait until radio 
station conversion has progressed to a point at which digital receivers 
have substantially penetrated the market.
    57. Certification. Section 2.907 of the Commission's rules concerns 
the certification of electronic equipment. Certification is an 
equipment authorization issued by the Commission, based on 
representations and test data submitted by the applicant. Certification 
attaches to all units subsequently marketed by the grantee which are 
identical to the sample tested except for permissive changes or other 
variations authorized by the Commission. We seek comment on what, if 
any, rules in part 2 of our regulations must be modified to allow 
manufacturers to obtain certification of digital exciters and digital-
compatible transmitters. How should these rule changes be coordinated 
with other service rule changes possible in this proceeding?
    58. Licensing. Under Sec.  73.1695 of the Commission's rules, the 
Commission considers the question of whether a proposed change or 
modification of a transmission standard for a broadcast station would 
be in the public interest. Sections 73.3571 and 73.3573 of the 
Commission's rules discuss the processing of AM and FM broadcast 
station applications, respectively. We seek comment on what, if 
anything, the Commission should do to amend or replace these rules in 
the context of DAB.
    59. Forms. Section 73.3500 of the Commission's rules lists the 
applications and report forms that must be filed by an actual or 
potential broadcast licensee in certain circumstances. We seek comment 
on which forms and applications must be modified because of DAB. The 
following forms may be at issue: (1) Form 301--Application for 
Authority To Construct or Make Changes in a Commercial Broadcast 
Station; (2) Form 302-AM--Application for AM Broadcast Station License; 
(3) Form 302-FM--Application for FM Broadcast Station License; (4) Form 
313--Application for Authorization in the Auxiliary Broadcast Services; 
(5) Form 340--Application for Authority To Construct or Make Changes in 
a Noncommercial Educational Broadcast Station; (6) Form 349--
Application for Authority To Construct or Make Changes in an FM 
Translator or FM Booster Station; and (7) Form 350--Application for an 
FM Translator or FM Booster Station License. We seek comment on any 
specific changes to these forms.
    60. Noncommercial Radio. Noncommercial radio broadcasters face 
unique opportunities and challenges as they move to implement DAB. The 
Act defines a ``noncommercial educational broadcast station'' and 
``public broadcast station'' as a television or radio broadcast station 
that is eligible under the Commission's rules to be licensed as ``a 
noncommercial educational radio or television broadcast station which 
is owned and operated by a public agency or nonprofit private 
foundation, cooperation, or association'' or ``is owned and operated by 
a municipality and which transmits only noncommercial programs for 
educational purposes.'' In 1981, Congress amended the Act to give 
public broadcasters more flexibility to generate funds for their 
operations. As amended, section 399B of the Act permits public stations 
to provide facilities and services in exchange for remuneration as long 
as those uses do not interfere with the stations' provision of public 
telecommunications services. Section 399B, however, does not permit 
public broadcast stations to make their facilities ``available to any 
person for the broadcasting of any advertisement.'' In addition, under 
Sec.  73.621 of the Commission's rules, public television

[[Page 27883]]

stations are required to furnish primarily an educational as well as a 
nonprofit and noncommercial broadcast service.
    61. In 2001, the Commission concluded that noncommercial 
educational television licensees (``NCEs'') must use their entire 
digital television capacity primarily for nonprofit, noncommercial, 
educational broadcast services. In addition, the Commission held that 
the statutory prohibition against broadcasting of advertising on NCE 
television stations applies only to broadcast programming streams 
provided by NCE licensees, but does not apply to any ancillary or 
supplementary services presented on their excess DTV channels that do 
not constitute broadcasting. Like commercial DTV stations, NCE 
licensees must pay a fee of five percent of gross revenues generated by 
ancillary or supplementary services provided on their DTV service. In 
Office of Communication, Inc. of United Church of Christ v. F.C.C. 
(``UCC''), the U.S. Court of Appeals for the District of Columbia 
Circuit upheld our DTV NCE A&S Order, 67 FR 3622-01 (Jan. 25, 2002).
    62. We seek comment on what, if any, special rules or 
considerations should apply to noncommercial radio stations in light of 
our DTV NCE A&S policy and the DC Circuit's UCC decision. Should we 
adopt the same approach for noncommercial radio stations as we adopted 
for NCE television licensees? Are there any differences between DTV and 
DAB that require special consideration in deciding this issue? 
Specifically, we ask whether a noncommercial radio station should be 
able to use excess digital audio spectrum capacity to generate revenue 
through the provision of supplementary services, such as fee-based 
services. Are there other ways of allowing a noncommercial radio 
station to exercise greater flexibility with its digital capacity? We 
also seek comment on how we can ensure noncommercial radio stations 
remain noncommercial in nature as the radio industry converts to DAB.
    63. Low Power FM. In 2000, the Commission authorized the licensing 
of two new classes of FM radio stations, one operating at a maximum 
power of 100 watts and one operating at a maximum power of 10 watts. 
Both types of stations, known as low power FM stations (``LPFM''), were 
authorized in a manner that protects existing FM service. A 100 watt 
LPFM station can serve an area with a radius of approximately 3.5 
miles. The Commission stated that LPFM stations would be operated on a 
noncommercial educational basis by entities that do not hold an 
attributable interest in any other broadcast station or other media 
subject to our ownership rules. The Commission established the new LPFM 
service to create new broadcasting opportunities for locally-based 
organizations to serve their communities.
    64. In December 2000, Congress passed the Government of the 
District of Columbia Appropriations Act, FY 2001 (``DCAA''). That 
legislation required the Commission to prescribe third-adjacent channel 
spacing requirements for LPFM stations, and invalidate any existing 
licenses that did not comply with the new separation criteria. Congress 
instructed the Commission to conduct an experimental program to test 
whether LPFM stations would interfere with existing FM stations, if 
LPFM stations were not subject to third-adjacent channel spacing 
requirements. Congress also instructed that such tests determine 
whether LPFM will interfere with full power stations' digital audio 
broadcasting efforts. The DCAA directed the Commission to select an 
independent entity to conduct field tests and to ``publish the results 
of the experimental program and field tests and afford an opportunity 
for the public to comment on such results.'' The Commission selected 
the MITRE Corporation as the independent entity that would conduct the 
testing. On June 30, 2003, MITRE submitted its Final Report (``LPFM 
Report'') to the Commission. The Report describes the field measurement 
data collected and analyzes it with regard to the levels of harmful 
interference experienced. The LPFM Report also contains theoretical 
analysis, conclusions, and recommendations to the Commission. Pertinent 
to the discussion here, the Report found that LPFM will not interfere 
with DAB service provided by full power radio stations. On July 11, 
2003, the Media Bureau issued a Public Notice seeking comment on the 
LPFM Report. On February 19, 2004, a Report to Congress on the LPFM 
interference testing program was issued in accordance with the DCAA. 
That Report reiterated the finding that third-adjacent channel LPFM 
stations will have little or no effect on terrestrial digital radio 
since third-adjacent channel LPFM interference to digital receivers is 
unlikely to occur beyond 130 meters from the LPFM transmitter. We do 
not seek further comment on the LPFM Report in this proceeding. 
Instead, we seek comment on the conversion of LPFM stations to digital 
operation, and the potential impact of such a conversion on other 
stations.
    65. Ex Parte Rules. This proceeding will be treated as a ``permit-
but-disclose'' proceeding subject to the ``permit-but-disclose'' 
requirements under Sec.  1.1206(b) of the Commission's rules. Ex parte 
presentations are permissible if disclosed in accordance with 
Commission rules, except during the Sunshine Agenda period when 
presentations, ex parte or otherwise, are generally prohibited. Persons 
making oral ex parte presentations are reminded that a memorandum 
summarizing a presentation must contain a summary of the substance of 
the presentation and not merely a listing of the subjects discussed. 
More than a one-or two-sentence description of the views and arguments 
presented is generally required. Additional rules pertaining to oral 
and written presentations are set forth in Sec.  1.1206(b).
    66. Comments and Reply Comments. Pursuant to Sec. Sec.  1.415 and 
1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested 
parties must file comments on or before June 16, 2004 and reply 
comments on or before July 16, 2004. Comments may be filed using the 
Commission's Electronic Comment Filing System (``ECFS'') or by filing 
paper copies. See Electronic Filing of Documents in Rulemaking 
Proceedings, 63 FR 24121 (1998). Accessible formats (computer 
diskettes, large print, audio recording, and Braille) are available to 
persons with disabilities by contacting Brian Millin, of the Consumer & 
Governmental Affairs Bureau, at (202) 418-7426, TTY (202) 418-7365, or 
at [email protected].
    67. Comments filed through the ECFS can be sent as an electronic 
file via the Internet to http://www.fcc.gov/e-file/ecfs.html. 
Generally, only one copy of an electronic submission must be filed. In 
completing the transmittal screen, commenters should include their full 
name, U.S. Postal Service mailing address, and the applicable docket or 
rulemaking number. Parties may also submit an electronic comment by 
Internet e-mail. To get filing instructions for e-mail comments, 
commenters should send an e-mail to [email protected], and should include 
the following words in the body of the message, ``get form .'' A sample form and directions will be sent in reply.
    68. Parties who choose to file by paper must file an original and 
four copies of each filing. Filings can be sent by hand or messenger 
delivery, by commercial overnight courier, or by first-class or 
overnight U.S. Postal Service (although we continue to experience 
delays in receiving U.S.

[[Page 27884]]

Postal Service mail). The Commission's contractor, Natek, Inc., will 
receive hand-delivered or messenger-delivered paper filings for the 
Commission's Secretary at 236 Massachusetts Avenue, NE., Suite 110, 
Washington, DC 20002. The filing hours at this location are 8 a.m. to 7 
p.m. All hand deliveries must be held together with rubber bands or 
fasteners. Any envelopes must be disposed of before entering the 
building. Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class mail, 
Express Mail, and Priority Mail, should be addressed to 445 12th 
Street, SW., Washington, DC 20554. All filings must be addressed to the 
Commission's Secretary, Office of the Secretary, Federal Communications 
Commission. For additional information on this proceeding, contact Ben 
Golant, [email protected], of the Media Bureau, Policy Division, (202) 
418-7111.
    69. The Regulatory Flexibility Act of 1980, as amended (``RFA''), 
requires that a regulatory flexibility analysis be prepared for notice 
and comment rule making proceedings, unless the agency certifies that 
``the rule will not, if promulgated, have a significant economic impact 
on a substantial number of small entities.'' The RFA generally defines 
the term ``small entity'' as having the same meaning as the terms 
``small business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) Is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).
    70. As required by the RFA, an Initial Regulatory Flexibility 
Analysis (``IRFA'') was incorporated in the NPRM in MM Docket No. 99-
325. The Commission sought written public comments on the proposals in 
the NPRM including comments on the IRFA. The Office of Advocacy, U.S. 
Small Business Administration (SBA) filed comments asserting that the 
Commission, in the IRFA, failed to adequately consider the potential 
impact of DAB on small businesses and did not discuss alternatives 
designed to minimize regulatory burdens on small entities. In the DAB 
R&O, the Commission promised to issue a FNPRM proposing final rules for 
digital audio broadcasting and stated it would consider the impact of 
any final rules on small entities in connection with that further 
proceeding. By the issuance of this FNPRM, we seek comment on the 
impact our suggested proposals would have on small business entities.
    71. The Commission will send a copy of the FNPRM, including a copy 
of the Initial Regulatory Flexibility Act analysis, in a Report to 
Congress pursuant to the Congressional Review Act. In addition, a copy 
of the FNPRM will be sent to the Chief Counsel for Advocacy of the SBA, 
and will be published in the Federal Register.
    72. This document is available in alternative formats (computer 
diskette, large print, audio record, and Braille). Persons with 
disabilities who need documents in these formats may contact Brian 
Millin at (202) 418-7426 (voice), (202) 418-7365 (TTY), or via e-mail 
at [email protected].
    73. This FNPRM may lead to a Report and Order that would contain 
information collection(s) subject to the Paperwork Reduction Act of 
1995 (``PRA''), Public Law 104-13. This FNPRM will be submitted to the 
Office of Management and Budget (``OMB'') for review under the PRA. 
OMB, the general public and other Federal agencies are invited to 
comment on the possible information collections, such as FCC form 
revisions, contained in this proceeding. Comments should address: (a) 
Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Commission, including 
whether the information shall have practical utility; (b) the accuracy 
of the Commission's burden estimates; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of information on the 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    74. Written comments on possible new and modified information 
collections must be submitted on or before 60 days after date of 
publication the Federal Register. In addition to filing comments with 
the Secretary, a copy of any Paperwork Reduction Act comments on the 
information collection(s) contained herein should be submitted to 
Leslie Smith, Federal Communications Commission, Room 1-A804, 445 12th 
Street, SW., Washington, DC 20554, or via the Internet to Leslie 
[email protected], and to Kristy L. LaLonde, OMB Desk Officer, Room 10234 
NEOB, 725 17th Street, NW., Washington, DC 20503 via the Internet to 
[email protected] or by fax to 202-395-5167. For additional 
information concerning the information collection(s) contained in this 
document, contact Leslie Smith at 202-418-0217, or via the Internet at 
[email protected]">Leslie.[email protected].

Initial Regulatory Flexibility Analysis

    75. As required by the Regulatory Flexibility Act of 1980, as 
amended, the Commission has prepared this Initial Regulatory 
Flexibility Analysis of the possible significant economic impact on a 
substantial number of small entities by the policies and rules proposed 
in the FNPRM. Written public comments are requested on this IRFA. 
Comments must be identified as responses to the IRFA and must be filed 
by the deadlines for comments on the FNPRM provided above. The 
Commission will send a copy of this entire FNPRM, including this IRFA, 
to the Chief Counsel for Advocacy of the Small Business Administration 
(``SBA''). In addition, the FNPRM and the IRFA (or summaries thereof) 
will be published in the Federal Register.
    76. Need For, and Objectives of, the Proposed Rules. This 
rulemaking proceeding is initiated to obtain comments concerning the 
Commission's proposals to foster the development and implementation of 
terrestrial digital audio broadcasting. In the FNPRM the Commission (1) 
reaffirms its commitment to providing radio broadcasters with the 
opportunity to take advantage of DAB technology; (2) identifies 
Commission public policy objectives resulting from the introduction of 
DAB service, such as more diverse programming serving local and 
community needs; (3) explores avenues for encouraging the adoption of 
DAB by providing radio stations with the ability to offer datacasting 
and subscription services; and (4) proposes technical service rules for 
DAB, such as the authority to commence AM nighttime service and 
permitting efficient equipment authorization.
    77. Legal Basis. The authority for this proposed rulemaking is 
contained in Sections 1, 2, 4(i), 303, 307, 312(a)(7), 315, 317, 507, 
and 508 of the Communications Act of 1934, 47 U.S.C. 151, 152, 154(i), 
303, 307, 312(a)(7), 315, 317, 508, and 509.
    78. Description and Estimate of the Number of Small Entities to 
Which the Proposed Rules Will Apply. The RFA directs the Commission to 
provide a description of and, where feasible, an estimate of the number 
of small entities that will be affected by the proposed rules. The RFA 
generally defines the term ``small entity'' as encompassing the terms 
``small business,'' ``small

[[Page 27885]]

organization,'' and ``small governmental entity.'' In addition, the 
term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. A small business 
concern is one which: (1) Is independently owned and operated; (2) is 
not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the Small Business Administration 
(``SBA'').
    79. Radio Stations. The proposed rules and policies potentially 
will apply to all AM and FM radio broadcasting licensees and potential 
licensees. The SBA defines a radio broadcasting station that has no 
more than $6 million in annual receipts as a small business. A radio 
broadcasting station is an establishment primarily engaged in 
broadcasting aural programs by radio to the public. Included in this 
industry are commercial, religious, educational, and other radio 
stations. Radio broadcasting stations which primarily are engaged in 
radio broadcasting and which produce radio program materials are 
similarly included. However, radio stations which are separate 
establishments and are primarily engaged in producing radio program 
material are classified under another SIC number. As of December 31, 
2003, official Commission records indicate that 11,011 commercial radio 
stations were operating, of which 4,794 were AM stations. Thus, the 
proposed rules will affect over 11,000 radio stations.
    80. Electronics Equipment Manufacturers. Rules adopted in this 
proceeding could apply to manufacturers of DAB receiving equipment and 
other types of consumer electronics equipment. The SBA has developed 
definitions of small entity for manufacturers of audio and video 
equipment as well as radio and television broadcasting and wireless 
communications equipment. The former category includes companies 
employing 750 or fewer employees, the latter category includes 
companies employing 1000 or fewer employees. The Commission has not 
developed a definition of small entities applicable to manufacturers of 
electronic equipment used by consumers, as compared to industrial use 
by television licensees and related businesses. Therefore, we will use 
the SBA definitions applicable to manufacturers of audio and visual 
equipment and radio and television broadcasting and wireless 
communications equipment, since these are the two closest NAICS Codes 
applicable to the consumer electronics equipment manufacturing 
industry. However, these NAICS categories are broad and specific 
figures are not available as to how many of these establishments 
manufacture consumer equipment. According to the SBA's regulations, an 
audio and visual equipment manufacturer must have 750 or fewer 
employees in order to qualify as a small business concern. Census 
Bureau data indicates that there are 554 U.S. establishments that 
manufacture audio and visual equipment, and that 542 of these 
establishments have fewer than 500 employees and would be classified as 
small entities. The remaining 12 establishments have 500 or more 
employees; however, we are unable to determine how many of those have 
fewer than 750 employees and therefore, also qualify as small entities 
under the SBA definition. Under the SBA's regulations, a radio and 
television broadcasting and wireless communications equipment 
manufacturer must also have 750 or fewer employees in order to qualify 
as a small business concern. Census Bureau data indicates that there 
1,215 U.S. establishments that manufacture radio and television 
broadcasting and wireless communications equipment, and that 1,150 of 
these establishments have fewer than 500 employees and would be 
classified as small entities. The remaining 65 establishments have 500 
or more employees; however, we are unable to determine how many of 
those have fewer than 750 employees and therefore, also qualify as 
small entities under the SBA definition. We therefore conclude that 
there are no more than 542 small manufacturers of audio and visual 
electronics equipment and no more than 1,150 small manufacturers of 
radio and television broadcasting and wireless communications equipment 
for consumer/household use.
    81. Description of Projected Reporting, Recordkeeping and Other 
Compliance Requirements. The proposed rules may impose additional 
reporting or recordkeeping requirements on existing radio stations, 
depending upon how the Commission chooses to update its forms in 
response to comments filed in this proceeding. We seek comment on the 
possible burden these requirements would place on small entities. Also, 
we seek comment on whether a special approach toward any possible 
compliance burdens on small entities might be appropriate.
    82. Steps Taken To Minimize Significant Impact on Small Entities, 
and Significant Alternatives Considered. The RFA requires an agency to 
describe any significant alternatives that it has considered in 
reaching its proposed approach, which may include the following four 
alternatives (among others): (1) The establishment of differing 
compliance or reporting requirements or timetables that take into 
account the resources available to small entities; (2) the 
clarification, consolidation, or simplification of compliance or 
reporting requirements under the rule for small entities; (3) the use 
of performance, rather than design, standards; and (4) an exemption 
from coverage of the rule, or any part thereof, for small entities.
    83. In the First R&O in this proceeding, the Commission considered 
alternative standards for digital audio broadcasting. The Commission, 
after careful study and consideration, chose iBiquity's in-band on-
channel technology over the competing Eureka 147 standard. In this 
FNPRM, the Commission seeks comment on what rules changes are in the 
public interest to reflect the advent of digital audio broadcasting 
using iBiquity's standard. The Commission proposes a flexible use 
policy for DAB, allowing radio stations to transmit high quality 
digital audio, multiplexed digital audio streams, and datacasting. At 
the same time, the Commission proposes to apply existing public 
interest requirements and operational rules to DAB. The Commission 
seeks comment on how to apply such requirements, understanding the 
burdens such regulation may impose on small as well as large entities 
affected by the rules we will adopt. In addition, rather than require 
all radio stations to convert to a digital format by a date certain, 
the Commission proposes to allow marketplace forces to dictate the 
conversion process.
    84. Federal Rules Which Duplicate, Overlap, or Conflict With, the 
Commission's Proposals. None.

List of Subjects

47 CFR Part 2

    Communications equipment.

47 CFR Part 73

    Political candidates, Radio.

47 CFR Part 74

    Communications equipment, Radio.

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 04-11118 Filed 5-14-04; 8:45 am]
BILLING CODE 6712-01-P