Agreement indicates weak prospects for a future transition to DAB
Teracom AB has been following a public procurement with an agreement to deliver a nationwide terrestrial network for FM and RDS to Swedish Radio (SR) which launched the tender in April 2015. The basic requirements from SR is a population coverage of at least 99.8% and tightening requirements for reliability and robustness.
Already the existing FM network meets high demands on availability and can withstand severe conditions such as widespread power outages and severe storms. That is why the FM network is also the primary communication channel for emergency information and important emergency announcements (VMA). The agreement includes a minimum of 8 years with an option to 12 years. The total price is regulated by the telecom authority (PTS), but is expected to be worth at least SEK 1.4 billion (€150 million). We are very pleased that Swedish Radio now has given us continued trust as supplier of this important service to society at large and the public, says Johnny Svedberg, CEO of Teracom AB.
The DAB system has been broadcast in Sweden on test basis since 1991. Together with SR and two commercial radio companies Teracom have been lobbying for several years for a transition from FM to DAB+ 2017. However, there has been a heavy opposition in a recent consultation round and also by the National Audit. For a second time the government rejected the proposal in June 2015. The first rejection was already in 2005.
Teracom is part of Teracom Boxer Group. The state-owned group consists of Teracom and Boxer, Sweden and Denmark.