Smartphone makers ready to wage war on radio over FM chip mandate

The great smartphone FM tuner device mandate crusade shows no sign of lessening.

The National Association of Broadcasters has formally endorsed a proposal to the musicFIRST coalition that would green light over-the-air radio stations paying performance royalties to musicians -- and more. On top of a play-for-pay schedule, the blueprint says that both sides will push for "Congressionally-mandated radio-activated chips" in smartphones, "with an acceptable phase-in period and inclusion of HD Radio chips when economically feasible." The NAB's Board of Directors approved the framework. musicFIRST represents performers and the music labels. The group has long championed the Performance Rights Act (PRA), with its own performance fee provisions. Although the PRA is stalled in Congress, musicFIRST still says it isn't sure whether it's on board for this deal.

But the NAB proposal elicited a furious letter from Gary Shapiro, CEO of the Consumer Electronics Association, which represents the mobile phone makers. The statement threatens nothing less than existential war against the whole concept of terrestrial broadcasting itself. If NAB keeps pushing this agenda, the missive warns, CEA will "continue to point out the following": "Radio is a legacy horse and buggy industry trying to put limits on innovative new industries to preserve its former monopoly. The industry's refusal to innovate to the benefit of consumers raises questions about the ongoing wisdom of broadcaster use of publicly owned spectrum that could better be used for broadband services that serve the public interest."