4-25-2012Getting an easy-to-use FM chip into every cell phone sold has become a major issue for the radio industry. Emmis CEO Jeff Smulyan has spearheaded the effort, however the NAB is also heavily involved, and iBiquity just became part of the push last week when it unveiled an HD chip in Las Vegas. After an attempt to have the chip mandated was thwarted, broadcasters are now using community safety as their number-one selling proposition. Not everyone's buying the safety pitch
On Tuesday, the issue made it to Florida Congressman Gus Bilirakis, who is the Chairman of the Subcommittee on Emergency Preparedness. Smulyan was joined by NAB CEO Gordon Smith, Clear Channel's Jeff Littlejohn, and others representing broadcasters. AT&T and Verizon were invited but didn't show. Representatives from the International Association for the Wireless Industry (also known as the CTIA) were at the meeting, perhaps only to make sure the word "mandate" didn't pop up again. Jot Carpenter (pictured) is the organization's Vice President of Governmental Affairs. We spoke to Carpenter about the meeting and it's his opinion this has nothing to do with safety and everything to do with broadcasters wanting a free ride into the smartphone.
LISTEN TO OUR INTERVIEW WITH CARPENTER HERE
Carpenter says if broadcasters can get the chip into the phone, they wouldn't have to pay streaming fees because the chip delivers the over-the-air product, therefore eliminating the streaming cost. He was also less than impressed with the rollout last week of the new HD chip by iBiquity and Intel. "I chuckled when I saw that. I don't know a soul who has HD. That was just an attempt to jump start the FM chip business which has not taken off." Carpenter also says those phones that already have the chips are not really being activated all that much.
Both Smulyan and the NAB say the meeting was positive, and Smulyan believes the issue is going to get some traction ? perhaps additional meetings with lawmakers. Bilirakis has not taken a position on whether the FM chips should be installed in cell phones. He said, ?The best ideas and innovation come from the private sector, not the federal government. The telecommunications sector ? from television, to radio, to the wireless phone industry ? offered valuable insight and suggestions today for Congress to consider.?
There are some phones now on the market with chips already installed, but they are not widely known brands like the iPhone, mostly because it appears AT&T and Verizon have very little interest in the chip. The reality is there has been very little consumer outcry for the FM chip, perhaps because an emergency hasn't hit them yet. Perhaps it's because they have so many apps on their phones already they figure they have what they need. Or maybe the radio industry needs to figure out a way to organize and educate the public on why they might need it.
(4/27/2012 6:57:53 AM)
I find it deliciously ironic (and hypocritical) that we preach that many of the FCC's statutory mandates over the broadcasting industry are onerous government regulation in light of new developments int he media world, but we turn around and use political muscle in order to try to force another industry to take steps that are probably not economically justifiable in order to serve our own interests. Do we believe in a free market with only the most necessary government regulation, or is that just something we say when it is in our interests to say so? I've been in this business for more than 30 years and I see the same thing played out over and over again. The default position for many broadcasters when faced with the prospect of additional competition is to go crying to Congress or the FCC for protection. I guess you can have it both ways, but I would suggest that it is not an intellectually coherent place to end up.
The bottom line is that if the public really wanted FM radios in their phones, the phone companies would provide them. (I guess putting an AM chip is impossible?)
Rather than try to force people to buy products that they probably don't want, perhaps it would be better for broadcasters to continue to evolve into the new digital world rather than be like King Canute and try to will the tides to change. The TV guys seem to be evolving to meet their challenges. Why do we believe we have a inalienable human right to play in the sandbox with which we are comfortable?
From these comments its very clear that the Radio industry has to be more united for this to ever become a success. I agree with Mr. Carpenter that an HD chip was a lame ploy (my words). Why an FM chip? Why not an AM chip? Why not both? Is this a technical issue? I do agree that we need something in cell phones/smart phones so people can be alerted to natural disasters and other emergencies -- let's keep working on it!
(4/26/2012 5:40:41 PM)
In true emergencies, such as those in Tuscaloosa and Joplin last year, good luck with Twitter or anything else online, because the internet won't be there. Your smartphone will quickly become an FM radio -- if so equipped. In those true emergencies, local radio is likely to remain on the air. I know that with 24/7 staffing and back-up generators at both studio and transmitter, listeners in my market will have someplace to turn.
(4/26/2012 4:10:58 PM)
Having FM radio access on cell/smart phones is a no brainer. And there are still family owned independent broadcasters(unlike the cookie cutter conglomerates-I am proud of our 50 year history of serving the public--GoCountry105.com,KMOZART.com, ClassicCountry105.com).
There is ample precedent and history for the FCC to mandate FM access in cell phones. UHF TV access was made mandatory circa 1962, and Expanded Band AM radio was also made mandatory.
(4/26/2012 2:46:16 PM)
So its the streaming cost, yeah thats it! Because it cost so much more to stream to the phone too! But if all the FM station will stop streaming that would open more bandwidth for Pandora!
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