In common with other industrialised countries, the radio industry in Australia is in the midst of a significant transformation. Traditional analogue radio services, broadcasting on AM and FM frequencies, remain popular and continue to attract substantial audiences and revenue. However, the analogue platform is very mature, offering only limited capacity for technical change and development, and FM spectrum is now largely fully occupied in population dense areas. In addition, AM transmissions face growing pressure from urban development and related increasing signal interference.

The Australian radio industry therefore retains a strong interest in the opportunities presented by digital radio for service innovation and future growth. To date, digital terrestrial radio services have been licensed for the five mainland state capital cities,1 and trials involving such services are underway in Canberra and Darwin. Within the mainland state capital cities, take up of digital terrestrial radio services continues to grow slowly but steadily with listenership reaching almost 25 per cent in the first quarter of 2015.2 Listenership has benefitted from increased availability of digital radio receivers in motor vehicles (a primary source of listening) and the recent additional rollout of in-fill transmitters increasing coverage of the services in Brisbane, Melbourne, Perth and Sydney.

The cost and complexity of rolling out Digital Audio Broadcasting Plus (DAB+)-based digital terrestrial radio services across regional Australia3 present major challenges for the industry. The need to cover large geographic areas with small and dispersed populations offers unique challenges which have not been faced in many international markets.

At the same time, Australians are rapidly adopting new types of technology with the growth of online audio platforms such as Spotify and Pandora. These services are complementing the move by traditional radio businesses—most notably the national broadcasters—to deliver radio services online or through mobile apps. The announcement by Apple of a move into the streamed audio market will only increase the choices available to audiences. These services may herald a generational change in listening habits with significant implications for traditional platforms over time. That said, there are ongoing challenges with the bandwidth and data transmission requirements of these services being delivered to large audiences over mobile and wireless platforms.

The digital terrestrial radio industry is subject to a range of regulatory requirements in the Broadcasting Services Act 1992 (the BSA) and the Radiocommunications Act 1992 (the Radiocommunications Act), which govern matters such as the planning and start up of services, and the sharing of and access to the transmission multiplex in each area. Against the background of changes in the radio industry, this review considers whether changes are required to this framework to provide greater flexibility to the industry and the Australian Communications and Media Authority (the ACMA) to plan for change and ensure that the radio industry is well placed to determine its future strategies for digital services.

Key issues examined by the review included:

• the current state of digital terrestrial radio in Australia, and the impacts of alternative technologies on the industry and listeners;
• whether Australia should set a digital switchover date for analogue commercial, national, community or other terrestrially transmitted radio services;
• what legislative/regulatory arrangements should be in place to assist the rollout of digital terrestrial radio services in regional areas; and
• whether changes are required to the legislative regime for digital radio, including to reduce the regulatory burden on industry.