News story about a report commissioned by the French government which identifies the issues and problems of implementing digital radio switchover in France, written by Grant Goddard in November 2010 for Grant Goddard: Radio Blog.

1. NEWS: DIGITAL RADIO REPORT
FOR FRENCH GOVERNMENT
IDENTIFIES 'THE PARADOX OF
DAB'
by
GRANT GODDARD
www.grantgoddard.co.uk
November 2010

2. David Kessler, former chief executive of 'Radio France', submitted a 22-page interim report on
the planned launch of digital terrestrial radio in France to the government on 23 October 2010.
The report was made public last week. This is the third such report on the topic that the
government has commissioned in the last year. Most of Kessler’s report summarised the
existing positions of the main players in France (public radio, commercial radio networks, local
stations, etc.), but it also outlined some wider market issues. France has yet to launch digital
terrestrial radio, despite many start dates having come and gone over the years. The
commercial FM radio networks have argued that the cost would be prohibitive and the
expected financial returns insufficient.
The following are excerpts from the report:
1.6 Manufacturers
“Both equipment manufacturers (Simavelec and Secimavi) have focused on the
renewal of television receivers (digital TV, flat screens, 3D TV, connected TV) and, at
this stage, have invested little in radio receivers. This is evidenced by the IFA
[consumer electronics trade fair] held in Berlin in September 2010, where radio
receivers were virtually absent from the stands of the main manufacturers. Although,
at this international show, the big manufacturers are present in markets where DAB
has already launched, they do not consider it sufficiently beneficial to manufacture and
sell digital radio receivers. Manufacturers consider that the improvement in sound
quality offered by digital radio will be harder [for consumers] to appreciate than the
improvement in quality for digital television.”
2.3 The situation in other European countries
“A review of the situation overseas illustrates the same problem: many countries have
launched DAB and have long experience of it, but none have been able to implement
it as the dominant model for terrestrial broadcasting. This demonstrates what could be
called ‘the paradox of DAB radio’ – it is a sufficiently attractive technology to be
launched successfully, but it is insufficiently attractive to successfully allow FM
broadcasts to cease.”
4.0 Conditions to launch DAB
“Difficulties surrounding the launch of DAB:
 Uncertainties about the economic model
 The consumer benefit is uneven between towns and country
 The existence of IP as a competing platform, even if it is discounted, already exists
and can appear to be a real alternative
 Finally, little interest by telecom owners to use the FM band – it is too low
frequency (unlike the spectrum released by analogue TV) – which makes it very
difficult to monetise it and removes any global interest in accelerating towards
digital switchover.”
4.1 How could DAB conquer the public?
“For DAB to be a success with consumers, several conditions must be met:
 DAB radio receivers must be widely available, there must be an incentive for
consumers to buy them, and they must be installed in vehicles […]
 The sound quality of DAB must be at least equal, or superior, to that of existing FM
radio
 DAB radio must be known to the public and must be made attractive. This requires
a powerful, dynamic launch campaign.
 Radio offerings to listeners must be enriched. Since the launch has to be a lesson
in effective marketing, it must be huge from the outset in those areas where the
media regulator has identified that the increase in the number of radio stations is
relatively tangible and quite impressive.”
The report noted that the transmission cost for a national radio station to broadcast to 90% of
the population in France, using the digital T-DMB standard, will be €4.4m per annum. Some
existing national commercial networks have suggested that the cost of digital transmission
News: Digital Radio Report For French Government Identifies 'The Paradox Of DAB' page 2
©2010 Grant Goddard

3. News: Digital Radio Report For French Government Identifies 'The Paradox Of DAB' page 3
©2010 Grant Goddard
would only prove economically viable if it were reduced to between €0.5m and €1m per annum
and achieved coverage of 90% to 95% of France.
Kessler’s full report to the government will be published by year-end.
[I have used ‘DAB’ as shorthand for ‘digital terrestrial radio’, though France has decided to
adopt a technical standard that differs from DAB]
[First published by Grant Goddard: Radio Blog as 'France: Digital Radio Report For Government Identifies 'The
Paradox of DAB', 17 November 2010.]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk