Analog Radio, Move Over, Says ABI Research.

OYSTER BAY, N.Y. -- Analog radio, move over.

In Europe alone, over 500 million analog radios will need to be replaced in order to receive digital broadcast signals.

And not just radios: handheld electronic devices, televisions, laptop PC cards, and especially automobiles will all be receiving CD-quality audio, video, and data broadcasts from satellites or towers. In Europe, analog FM and AM are being replicated in the form of Digital Audio Broadcasting (DAB) and Digital Radio Mondiale (DRM). They will coexist with, and eventually replace, analog radio platforms that we have known for nearly 100 years.

A new study from ABI Research, "Digital Radio Automotive Markets" examines the major digital radio protocols and how they address mobile receivers, focusing on automotive markets. It dissects business issues, trends and technological advancements in detail, along with their potential market impact.

According to ABI Research's director of automotive research, Frank Viquez, "2004 has been the year that digital radio really started to mature, as broadcasters and equipment vendors witness consumers warming up to the new technology."

Lured by falling IC prices as well as by digital's efficient spectrum use promising more channels and more revenue-driving data services, equipment makers have flocked to the new market, especially in Europe, the current single largest market for terrestrial digital.

Existing satellite broadcasters have not been idle either. Both Sirius Satellite Radio and XM Satellite Radio are waiting for final regulatory approval to expand their reach into Canada.

This year marks the introduction of satellite radio-enabled dynamic navigation services through XM Satellite Radio's new NavTraffic Service. Digital radio's drawcards, explains Viquez, include dramatically improved audio quality, new revenues from specialized programming, and commercial data services such as real-time traffic information. "Traffic data services are inexpensive to combine with an automotive telematics offering because the infrastructure is already there. Also, you don't have to pay for air-time as you do with cellular."

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, real-time intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the Web at www.abiresearch.com, or by calling 516.624.2500.