Digital Radio Plan Approved

Federal regulators Thursday approved a new technology for offering digital radio service, one of the biggest upgrades in decades in sound quality and choice of stations and a challenge to the growing pay-satellite radio services.

The Federal Communications Commission at its regular monthly open meeting approved the technology for the digital radio service developed by IBiquity Digital Corp., a privately held firm backed by many of the biggest radio broadcasters.

“The beauty of digital is it always has the potential to provide better services for consumers with more efficient use of the spectrum,” said FCC Chairman Michael K. Powell.

Consumers eventually will have to buy new radios, which are not expected to be on the market until next year, and stations will have to upgrade their transmitting equipment at an average cost of about $75,000, according to IBiquity.

Part of the IBiquity technology will allow broadcasters a separate stream within the existing spectrum they use to offer other services and applications, such as weather or traffic data as well as news and stock quotes.

Some of the backers of IBiquity are Clear Channel Communications Inc., with some 1,200 stations; Viacom Inc.’s Infinity Broadcasting, with about 185 stations; and Walt Disney Co.’s ABC Radio network, with about 230 affiliate stations.