The determinants of digital terrestrial radio aftermarket coverage

Abstract

This article examines 29 national digital terrestrial radio (DTR) markets to identify sources of aftermarket service deployment. Unlike mobile phones, potential revenues from DTR are small. Censored model estimation is intended to inform what is important to regulators in driving deployment when maximum revenue is not the primary goal. Results indicate markets with only public broadcasters have better coverage. Also, public broadcaster trials provide guidance in the regular service delivery. Further, public broadcasters network coverage usually exceeds that for commercial providers. Other significant factors are: technology (regional multiplex numbers), geography (size of covered area) and service type (data, simulcast, exclusivity).

Keywords:

• digital terrestrial radio
• spectrum allocations
• aftermarket service deployment
• consumer welfare

JEL Classification:

• D45
• L96

Notes

¹ Thus, DAB+ offers better quality transmission with lower spectrum use.

² The Federal Communications Commission (in 2002) selected IBOC (in-band on-channel) or HD (Hybrid Digital) radio as the digital standard for the US. Terrestrial Integrated Services Digital Broadcasting (ISDB T) is adopted by Japan for DTR.

³ In several instances rollback occurred.

⁴ Digital Radio FAQs on Australian Communications and Media Authority: http://www.acma.gov.au/Industry/Broadcast/Spectrum-for-broadcasting/Broadcast-planning/digital-radio-1

⁵ International Telecommunication Union Recommendations (ITU-N) indicated DAB+ can transmit using spectrum from either the VHF band III (174–235MHz) or the UHF L-band (1452–1492 MHz).