Trade groups spar over proposed mandate for FM radio on cell phones

He said “government-dictated design” would hurt innovation and consumer choice, adding that FM radio is already available on cell phones for the consumers who want it.

The FM mandate is being pushed by the unusual pairing of the Recording Industry Association of America and the NAB, who have been at odds for years over whether the broadcasters should have to pay performers and the recording industry to play their songs on the radio.

As a resolution to the long and messy dispute, the pair have teamed up to push a compromise accord. Under the terms, both groups will support legislation to require that all cell phones become FM-enabled. Meanwhile, the broadcasters will begin paying royalties to performers.

The deal, however, has not sat well with cell-phone makers or providers, who say they are being dragged into a dispute unrelated to their businesses and that the effort is an attempt by the broadcasters to preserve their business model in a time when consumers are listening to music on other platforms. CEA president Gary Shapiro said the broadcasters are turning “FM” into “forced mandate.”

“We recognize that broadcasters are facing competition from new, increasingly popular services,” Shapiro said. “But rather than trying to save their horse and buggy business with government mandates, broadcasters should embrace innovation and begin providing services that Americans will actually want to use.”

A chip mandate is the “wrong answer,” according to Carpenter.

The broadcasters, however, say the FM mandate is in part a sound public safety policy, noting that radio has been crucial in times of crisis such as Sept. 11 and Hurricane Katrina. They also dispute that their industry is struggling, citing data that shows radio’s audience in the U.S. grew by 7 million listeners last year.

They also point to signs of Congressional support for a chip rule.

“Last November, a bipartisan group of 60 U.S. House lawmakers wrote to FCC Chairman Julius Genachowski and Secretary of Homeland Security Janet Napolitano asking them to consider adding an FM radio receiver on mobile phones handsets sold in the United States, citing safety and emergency alert concerns,” wrote NAB executive vice president for communications Dennis Wharton in a blog post last month.