Radio is Cross-Media in Italy

The rapid evolution and convergence towards new media (ie, its digitalisation) has been the main factor allowing radio to maintain a prominent role during the radical transformation of the media sector.

The first phase of the digitalisation process, the technological one, began in the 1990s with the development of Digital Audio Broadcasting (DAB) technology. The system enables the simultaneous transmission of content by fragmenting it into small numeric packages, based on a binary code transmitted by carrier wave signal, which can easily be duplicated and replicated over the network. Due to the quality of the system, the sound is higher and the signal is received without interruptions or “signal noise”, even in remote areas.

In Europe, the UK's BBC and Germany's ARD began delivering their services using DAB technology in 1995. During the following decade, the BBC and ARD expanded the service and implemented this new technology to achieve national network coverage in the UK and Germany, respectively.

In the US, the spread of the digital radio system took place even faster, through the use of a different standard (“HD radio”), which allows a digital signal to be transmitted over traditional radio frequences. In practice, this allowed the various broadcasters to use the frequencies already in use.

The integration of radio into the universe of new media, particularly the internet, has gone beyond the purely technological aspect, giving rise to the phenomenon of web radio. It is therefore no surprise that radio was the medium that first developed the fundamental characteristic of digital communication: interactivity. The tendency towards interaction and the increased involvement of the listener allowed radio to overcome its traditional role, by generating direct interaction with users.

In summary, radio has transformed into a social tool, serving as an instrument for cultural growth, fostering inclusion and participation, and providing a model for economic development.

European Digital Agenda

The European Digital Agenda for 2020–2030 addresses the widespread, rapid and large-scale development of digital service platforms to:

• create secure spaces and services;
• foster the development of a level playing field in those markets with large platforms;
• strengthen Europe's digital sovereignty; and
• contribute to the European goal of climate neutrality by 2050.

The European Digital Agenda plans to address the technological challenges brought by the use of new technologies, artificial intelligence, access to information available online, and the different ways of purchasing goods and services. Among those themes, the creation and implementation of 5G, mobile HD and digital terrestrial radio DAB+ are key priorities for the European Union.

The introduction of 5G will generate significant benefits in various economic sectors, such as healthcare, manufacturing, logistics and telemedicine. In Italy, the government intends to expand broadband and ultra-wideband connections to 100% of the national territory by 2026. Fewer resources are allocated to the improvement of the DAB+ network than to other strategic areas, but they are still sufficient to foster the development of the digital radio market in the entire national territory.

Regulatory Changes

In line with the Digital Agenda for Europe, Italy has initiated a process to adapt the relevant legislation, which has led to major regulatory changes in the TMT sector. Law No 205 of 27 December 2017 (Budget Law 2018) and Law No 145 of 30 December 2018 (Budget Law 2019) introduced structural changes to the regulatory framework for radio broadcasting.

In particular, under the Budget Law 2018, it became mandatory for all radio devices sold as of 1 January 2020 to be equipped with the capability to receive digital radio signals. This requirement impacts all devices, including portable radio devices and car stereo systems.

Subsequently, the Budget Law 2019 established that the 174-230 MHz frequency band, previously allocated in shared use to television and radio broadcasting, should be allocated primarily to audio broadcasting and only partially to television broadcasting. This made it possible to identify the spectrum resources designated to radio broadcasting services, which is a necessary first step before the allocation of the frequencies to both national and local broadcasters.

More specifically, the Provisional National Plan for the Assignment of Frequencies in VHF III band allocated the following to DAB+ digital radio broadcasting services:

• three national networks;
• 54 local networks with regional coverage (27 of which can be sub-divided); and
• 36 local networks with multi-provincial or provincial coverage.

The plan is “provisional” insofar as it remains formally open under the co-ordination of the Ministry of Enterprise and Made in Italy. It also established an international negotiating table with neighbouring states, to plan the allocation of frequencies across the Adriatic Sea. The outcome of such negotiations might impact the current allocation of radio frequences and, therefore, it might be necessary to revise the plan in the coming years.

The regulatory framework for digital radio broadcasting is outlined within the Regulation on the new discipline for the launch phase of terrestrial radio broadcasting in digital technology, under Resolution No 664/09/CONS of the AGCOM – the Italian Communications Authority. The regulation provides specific rules and procedures for market access and conditions for independent content providers in order to promote the enrichment of the offer of programmes available to users, and to ensure the development of the terrestrial digital radio broadcasting market in an open, balanced and pluralist sense.

More than ten years ago, Italy completed the television switch-off by definitively discontinuing analogue transmissions in favour of digital ones. As for radio broadcasting, digital transmissions (DAB+) will operate in parallel with analogue transmissions, since no real switch-off is planned. However, it is likely that technological transition will lead to a series of switch-overs in the next few years.

Licences

In 2023, after a long preparation phase, the Ministry of Enterprise and Made in Italy started assigning 20-year licences for digital terrestrial radio broadcasting services. In Italy, there is a distinction between radio broadcasters that air signal nationally (covering more than 70% of the territory) and radio broadcasters that air signal locally (covering less than 50% of the national territory), as they are assigned different types of licences.

From a regulatory perspective, the only entities authorised to broadcast radio content are those that are entitled to establish systems and business clusters to build the infrastructure dedicated to DAB+ transmission, as these entities operate in the market under a different type of licence.

National radio broadcasters are already well advanced with the construction of the network infrastructures for territorial coverage. In contrast, local broadcasters will begin to receive the necessary licences to build the networks from February 2024. The market is open to foreign companies, provided they comply with the obligations of audio-visual media service providers included in the AGCOM Regulation.

When fully operational, the market will comprise about 60 national digital radio networks and about 1,000 local digital radio networks, including private and public broadcasters (ie, the state-owned Radiotelevisione Italiana S.p.A.).

Italy is divided into 20 regions. The current process for requesting authorisations for both the realisation of the digital network and the broadcasting of content will be handled at both national and regional levels. Therefore, the Italian government intends to establish two tiers of network infrastructure utilising DAB+ technology. The first tier comprises network operators covering the entire national territory, while the second tier consists of networks managed by local operators, catering to either micro or macro areas exclusively.

Considering these points, it can be affirmed that the principles of fairness, transparency and non-discrimination derived from the EU directives and domestic legislation on electronic communication networks and services have been fully respected. Consequently, the framework established by the Italian government ensures equal conditions for market entry for all radio broadcasters, fostering a level playing field for both private and public operators, including foreign companies.

In light of the above, 2024 represents a year of significant activity for the TMT sector and a turning point for radio media services in digital technology, from both a regulatory and authorisation perspective.

Which Improvements Will DAB+ Technology Bring to Users?

Implementing DAB+ technology across the entire national territory will improve the diffusion and quality of outdoor signals, with an expected coverage of no less than 95% for outdoor signals and no less than 70% for indoor signals. Users will continue to listen to the radio through analog devices, satellite (through TV devices) or the internet (through PCs or smartphones) with an improved signal and high-quality sound. In additionally, signal reception will be uninterrupted, especially for users listening from cars or mobile devices, with perfect sound for both music and radio programmes.

Analog radio broadcasting has historically been impacted by interference, causing interruptions and reducing the quality of the signal, especially when the user was listening to the radio while driving. DAB+ transmissions generate a clean, high-quality and uninterrupted signal, thus mitigating this problem.

By becoming interactive and multimedia, radio broadcasting is changing its role within the media sector. Unlike traditional television broadcasting, which has suffered a steady, non-reversible decline over the past decade due to streaming TV platforms and OTT services, radio broadcasting will be able to maintain a position in the market (or even improve it) by offering new products, information, entertainment and music at reasonable costs. All these elements considered together can help radio broadcasters change and develop their targeted audience and compete with on-demand streaming services, especially those aimed at young people.