MEDIA & MARKETING:There are concerns about the economic viability of digital radio broadcasting

THE BROADCASTING Commission of Ireland (BCI) will shortly award three digital terrestrial television multiplex package licences, another step in the process to switch over from analogue to digital television by 2012.

Digital technology is also affecting the radio arena, though there is some concern that digital radio is more trouble than it's worth.

The BCI is formulating a policy for the introduction of Digital Audio Broadcasting (Dab). It won't mean the end of FM listening but, if and when it happens, Dab could result in a lot more niche radio stations.

Unlike television, which the EU has decreed must switch from analogue to digital by 2012, there is no deadline for the introduction of Dab. Dan Healy, chief executive of Wilton Radio, believes Dab could seriously damage the existing radio sector.

"Digital radio already exists on the internet and on satellite. There is no time pressure to introduce Dab. The BCI needs to seriously analyse whether Dab is the right digital platform for radio and whether it is economically viable," he says.

To listen to a digital radio station in your kitchen, you'll need to buy a new radio. Typically, these sets also receive FM signals, but when you choose the digital option the screen on the radio displays the name of the song and the artist you are listening to. Dab radios in Britain are also enabled to display an electronic schedule guide.

In Britain, digital radio has been available since the 1990s and consumers have bought 12 million Dab radio sets. But earlier this year GCap Media, the largest commercial radio broadcaster in the UK, scrapped its digital-only stations.

Fru Hazlitt, the company's chief executive, said digital radio was "economically unviable".

Though the company's annual spend on digital radio was €12 million, 90 per cent of listeners preferred the company's mainstream stations on FM.

Dab trials have been ongoing in Dublin since 2007. Most of the trial Dab stations are just duplicates of existing FM radio stations, including Radio 1, Radio Kerry, Newstalk and Today FM.

But there are eight stations exclusive to Dab. Six of these stations are operated by RTÉ, and include rolling news bulletins and 24/7 stations dedicated to golden oldies, contemporary rock and dance music. On these digital stations, there are no commercials, just playlists.

If you don't have a digital radio set, you can listen to these stations on the internet.

The venture is obviously a lossmaker, but RTÉ doesn't seem concerned. JP Coakley, head of radio operations at RTÉ, says: "Digital and Dab is the future of radio."

The only private company taking part in the Dab trials with new output is Digital Radio Ltd (DRL), run by former disc jockey Dusty Rhodes. The company has been granted a 10-year licence to provide content to digital platforms, and that allowed DRL to take part in the trials. Rhodes has devised two digital stations: All 80s for nostalgia buffs and Mocha, which broadcasts RB and smooch soul music.

Rhodes concedes that listenership for his digital stations is small but he believes the medium has a commercial future.

"Dab will double the number of radio stations available and mean more competition for listeners and advertisers," he says.

James Cridland, BBC head of future media and technology, says Ireland can learn lessons from the UK experience. "State radio and commercial radio has to work together to make Dab work," he says.

Dusty Rhodes' easy-listening Mocha station would be just the ticket for stressed-out female drivers commuting to and from Dublin. But don't expect a Dab radio on your dashboard anytime soon, as car manufacturers are not yet convinced there is a pan- European market for digital radio.

An advertising-free television station for Dublin audiences makes its debut next week. Run by a co-operative, Dublin Community Television (DCTV) will show programmes made by, about and for Dublin communities. It will be broadcast 24 hours a day at channel 802 on the Chorus-NTL digital cable network.

In the absence of any advertising income to finance the project, Niamh Farren, of DCTV's management committee, says the station is funded by grant aid from the BCI Sound and Vision scheme. It is also funded by membership fees from the 100-plus co-operative members and by contributions from other sources including Dublin City Council, other Dublin councils and the Dublin Community Forum.

In March, DCTV received €300,000 from the BCI. Another tranche of money is expected in September. "Audience figures will not be a priority for us. It is more about giving people access to making television programmes," says Farren.

DCTV has been broadcasting on a pilot basis since September 2007.