[Federal Register Volume 67, Number 246 (Monday, December 23, 2002)]
[Rules and Regulations]
[Pages 78193-78195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32212]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 73

[MM Docket No. 99-325; FCC 02-286]


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

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this proceeding the Commission selects in-band, on-channel 
(IBOC) as the sole digital technology for the terrestrial radio 
broadcast service. The Commission announces notification procedures 
that will allow AM and FM broadcasters to begin interim digital 
operations immediately using the IBOC systems developed by iBiquity 
Digital Corporation. Finally, the Commission concludes that adoption of 
a single IBOC transmission standard would be beneficial, and solicits 
industry assistance in the development of a formal standard.

DATES: Effective January 22, 2003.

FOR FURTHER INFORMATION CONTACT: Peter H. Doyle, Audio Services 
Division, Mass Media Bureau (202) 418-2700.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's First 
Report and Order in MM. Docket No. 99-325, adopted October 10, 2002, 
and released October 11, 2002. The complete text of this First Report 
and Order is available for inspection and copying during normal 
business hours in the FCC Reference Center (Room CY-A257), 445 12th 
Street, SW., Washington, DC, and may also be purchased from the 
Commission's copy contractor, Qualex International, (202) 863-2893, 445 
12th Street, SW., Room CY-B402, Washington, DC 20554. The complete text 
is also available on the Internet at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-02-286A1.pdf.

Synopsis of First Report and Order

1. Introduction

    The Commission initiated this proceeding in November 1999 to 
advance the development of digital audio broadcasting (DAB) in the 
terrestrial radio service. The Notice of Proposed Rulemaking (NPRM; 64 
FR 61054, November 9, 1999) sought comment on alternatives for 
introducing DAB to the American public. The NPRM cited the promising 
preliminary results of several IBOC systems under development at the 
time. IBOC systems, designed to allow the simultaneous transmission of 
analog and digital signals within the existing AM and FM bands, had the 
potential to offer a seamless transition to digital technology without 
the need for allocation of additional spectrum. The NPRM noted, 
however, that IBOC technology was still unproven at the time. 
Therefore, the NPRM also sought comment on the use of other DAB 
technologies designed to operate in new spectrum.
    IBOC developers made significant progress in the years following 
the NPRM. Two IBOC developers, Lucent Digital Radio, Inc. and USA 
Digital Radio, Inc., merged to form iBiquity Digital Corporation--the 
only remaining IBOC proponent. iBiquity has continued to develop its 
IBOC technology and to cooperate in an extensive independent testing 
program. In contrast, out-of-band DAB options do not appear viable in 
the near term. No new spectrum is available for an out-of-band 
technology, and comments in this proceeding show no broadcast industry 
proponent for an approach other than IBOC.

2. National Radio Systems Committee Test Program

    The NPRM solicited the assistance of the private sector in 
evaluating candidate DAB systems. The National Radio Systems Committee 
(NRSC) responded with a comprehensive DAB test program. The only DAB 
systems submitted to the NRSC for evaluation were the iBiquity AM and 
FM ``hybrid'' IBOC systems. The term ``hybrid'' describes an IBOC 
system designed to transmit both analog and digital signals within the 
spectral emission mask of a single AM or FM channel. After an 
exhaustive testing and evaluation process, the NRSC strongly endorsed 
iBiquity's AM and FM IBOC systems, with AM IBOC initially limited to 
daytime use subject to additional testing under nighttime propagation 
conditions.

3. FM IBOC Test Results

    The NRSC judged the audio quality of the iBiquity hybrid FM IBOC 
system as superior to that of analog FM. Furthermore, the NRSC reports 
that the hybrid digital signal is more robust than analog FM in the 
face of impairments such as multipath interference, co- and adjacent 
channel interference, and noise. Test reports cited a small increase in 
potential interference to the reception of first-adjacent analog 
signals, mainly outside normally protected FM coverage contours. The 
Commission agreed with the NRSC and the majority of commenters that the 
small increase in potential interference is an acceptable tradeoff in 
view of the benefits inherent in digital technology.

[[Page 78194]]

    The NRSC's test program included an assessment of the effects of 
IBOC on FM subcarriers, secondary services normally used for GPS data, 
utility load management, foreign language programming, and radio 
reading services. The NRSC's report concluded that the most common 
digital subcarrier services, such as the Radio Broadcast Data System, 
would not be affected by IBOC. The NRSC recommended further testing of 
the effect of IBOC on analog subcarrier services such as reading for 
the blind. Additional tests showed that, in some circumstances, analog 
subcarrier receivers may receive significant new interference from IBOC 
operations on the second adjacent FM channel. The Commission 
acknowledges the importance of services such as reading for the blind, 
and directs broadcasters who implement IBOC to work closely with the 
providers of these services to resolve complaints of interference. The 
First Report and Order cautions broadcasters that interim IBOC 
authority may be rescinded if legitimate interference complaints cannot 
be resolved.

4. AM IBOC Test Results

    The iBiquity AM IBOC system offers a dramatic improvement in audio 
quality compared with analog AM, which is limited by its inherently 
poor fidelity and susceptibility to noise. This improvement comes at 
the cost of a bandwidth reduction for the analog portion of a hybrid 
IBOC AM signal, and of possible new interference from the digital AM 
IBOC system. The NRSC tests show that introduction of the digital IBOC 
signal will decrease the signal-to-noise performance of receivers tuned 
to the host analog signal. The change would not be objectionable to 
most listeners, according to subjective tests. The addition of the 
digital IBOC signal may cause interference to the reception of first-
adjacent signals; in some cases, first-adjacent interference may occur 
within the AM station's protected contour. The potential for first-
adjacent interference prompted some commenters to suggest reducing the 
power of the digital sidebands by 6 dB. Other commenters strongly 
opposed the digital power reduction, citing the necessity of maximizing 
digital coverage. The Commission declined to require a digital AM power 
reduction, opting instead to accept the NRSC's recommendation to 
implement the iBiqiuity AM IBOC system as tested. In situations where 
interference is more likely, AM broadcasters may choose to reduce 
digital carrier power. Furthermore, the Commission may order such a 
power reduction to resolve interference complaints when the parties 
cannot do so. The NRSC did not test the AM IBOC system under nighttime 
propagation conditions, which are vastly different than daytime 
conditions in the AM band. Consequently, the NRSC recommended and the 
Commission agreed that AM IBOC should be limited to daytime use pending 
further testing.

5. Adoption of IBOC Standards

    The NPRM listed the following ten criteria the Commission would use 
to evaluate a candidate digital audio broadcasting system: enhanced 
audio fidelity; robustness to interference and other signal 
impairments; compatibility with existing analog service; spectrum 
efficiency; flexibility; auxiliary capability; extensibility; 
accommodation for existing broadcasters; coverage; and affordability. 
The record in this proceeding demonstrates that the iBiquity IBOC 
systems, evaluated according to the foregoing criteria, offer the best 
way to advance the Commission's policy goals for digital transition. 
The iBiquity systems enjoy strong support from the broadcast industry, 
and are the only systems that could be implemented in the near future. 
Accordingly, the First Report and Order selects IBOC as the sole 
digital transmission technology for terrestrial broadcasters. The First 
Report and Order agrees with the majority of commenters that 
designation of a single IBOC standard would facilitate the efficient 
and orderly transition to digital radio. The Commission therefore 
solicits the assistance of the public in a formal standard-setting 
process, and notes that the NRSC has already formed an IBOC standards 
development working group.

6. Interim IBOC Operation

    To encourage rapid consumer acceptance of the new IBOC technology, 
the Commission permits AM and FM broadcasters to begin interim IBOC 
operations immediately using the iBiquity technology. Upon approval by 
the Office of Management and Budget, broadcasters who initiate IBOC 
operation shall notify the Commission by letter. The notification 
letter shall include certifications that the effective radiated power 
of the analog signal remains as authorized, and that the station 
remains in compliance with the Commission's rules governing human 
exposure to radiofrequency radiation.

Final Regulatory Flexibility Certification

    The Regulatory Flexibility Act of 1980, as amended (RFA; see 5 
U.S.C. 601-602), 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.'' 5 U.S.C. 601(b). The RFA generally defines the term ``small 
entity'' as having the same meaning as the terms ``small business,'' 
``small organization,'' and ``small governmental jurisdiction.'' 5 
U.S.C. 601(6). In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. 5 U.S.C. 601(3). 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). 15 U.S.C. 632.
    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 filed comments asserting that the Commission, 
in the IRFA, failed to adequately consider the potential impact of 
digital transition on small business and did not discuss alternatives 
designed to minimize regulatory burdens on small entities. 
Specifically, SBA states that ``[B]efore concluding that analog systems 
must sunset, the Commission should provide data on the cost of 
transition and should ensure that DAB will not burden small business.'' 
SBA further states that the Commission should make the results of the 
IBOC tests public to determine viability and compatibility including 
any interference concerns. It suggests that ``* * * a better course of 
action might be to permit stations to install digital systems but only 
if they do not cause interference to analog systems. In this scenario, 
digital and analog systems would operate concurrently.'' According to 
SBA, the Commission ``* * * should issue additional notices of proposed 
rulemaking as it gleans additional information regarding the 
feasibility and desirability of DAB transition.'' Finally, SBA states 
that the Commission failed to discuss alternatives that would minimize 
the regulatory burden on small entities.
    Although, in this First Report and Order the Commission takes two 
actions, neither of which will have a significant impact on small 
entities, our approach to digital implementation is consistent with 
that advocated by SBA. First, the Commission endorses IBOC

[[Page 78195]]

technology for use by AM and FM digital audio broadcasting operations. 
Second, the Commission authorizes interim, voluntary digital 
broadcasting operations for both AM and FM licensees. Only those 
broadcasters wishing to take advantage of this opportunity to begin 
digital broadcasting need comply with any notification or technical 
requirements. Those broadcasters choosing not to initiate such digital 
operations will not be materially affected. The Commission will issue a 
Further NPRM proposing final rules for digital audio broadcasting and 
will consider the impact of any final rules on small entities in 
connection with that further proceeding. We therefore certify that the 
requirements of this First Report and Order will not have a significant 
economic impact on a substantial number of small entities.
    In adopting this approach, we carefully analyzed the results of the 
IBOC tests and we conclude that any minimal interference that might be 
caused is outweighed by the benefits of digital service. Such benefits 
will accrue to small entities as well as large businesses should they 
choose to implement digital operation. In addition, we adopt procedures 
for these voluntary operations to assure that any interference 
complaints are resolved quickly. Under this plan, analog and digital 
systems will operate concurrently, a result advocated by SBA. With 
respect to the potential cost of implementation, preliminary estimates 
indicate that that IBOC costs are not unreasonable and that use of IBOC 
is inherently less costly than other systems. Again, we emphasize that 
the interim operations adopted here are strictly voluntary and thus no 
broadcaster will be compelled to incur any costs. Finally, as SBA 
suggests, we will issue a Further NPRM to solicit comment on any final 
digital transition rules.
    The Commission will send a copy of the First Report and Order, 
including a copy of this Final Regulatory Flexibility Certification, in 
a report to Congress pursuant to the Congressional Review Act. 5 U.S.C. 
801(a)(1)(A). In addition, the First Report and Order and this final 
certification will be sent to the Chief Counsel for Advocacy of the 
SBA. 5 U.S.C. 605(b).
    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].

Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 02-32212 Filed 12-20-02; 8:45 am]
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