EXECUTIVE SUMMARY

Lapp-Hancock Associates Limited in association with L-P Tardif & Associates Inc. is pleased to submit this report entitled A Strategy for the Provision of ITS Services by the Canadian Radio Broadcast Industry. This report is submitted to the four organizations funding this project:

• Canadian Association of Broadcasters
• Canadian Broadcasting Corporation
• Task Force on the Introduction of Digital Radio
• Transport Canada

Intelligent Transportation Services (ITS) is an evolution of Traffic Management Technology used since the 1960s. ITS is a group of technologies that are evolving as the result of the need to respond to congestion and safety problems on the world's highway systems. The primary benefit is the ability to respond to some of these problems in a more cost-effective way than simply expanding the highway infrastructure.

One aspect of ITS is the broadcast of information to travellers, such as:

• Incident and traffic flow information
• Environmental conditions
• Severe weather warnings
• Public Transit information

There is an opportunity, recognized around the world, for radio broadcasters to deliver this information to devices in vehicles and fixed locations. Initially, the display screens will be small and text only; later, the screens will be larger, include graphic information and will eventually be in colour.

There are three network technologies that can be used in Canada. First, there is an international standard for FM sub-carrier known as RDS or RBDS. This is a well-defined standard that is supported by many equipment suppliers; the disadvantage is that it is very low speed. The second network technology is one of the emerging high-speed FM sub-carrier technologies. These systems generally work at data rates of 8-20 KBPS. At this time, there is no industry standard; nor is there any assurance that there will be an industry standard. The third and final network technology is Digital Radio. Because the Canadian broadcasting industry has already decided to evolve to Digital Radio, this is clearly the best long-term approach to ITS services.

This study recommends a three-phase approach:

• Phase 1 A proof-of-concept trial in Toronto in 1997
• Phase 2 An expanded trial that includes Montreal, Vancouver and Ottawa in 1998
• Phase 3 A full deployment of ITS services marketed by radio broadcasters across the country in 1999.

The benefits to the potential stakeholders include:

• Federal Government: improved efficiency of use of the nation's highways; improved safety; growth and jobs for Canadian companies in a new industry.
• Provincial Governments: delayed expenditures for expanding the highway infrastructure; improved efficiency of use of the existing highways; improved safey.
• Broadcasters: New markets/new revenues; ITS may become the "killer application" for Digital Radio in cars; moving the radio industry further onto the Information Highway.
• Other companies: New markets for new products and services; an opportunity to develop new niche products for export.

The cost for the Phase 1 Trial is estimated to be $750K; the full Phase 2 trial will cost an additional $2M.

There is a potential role for DRRI as the overall manager of the trials. A new company, with the stakeholders as shareholders, is envisaged for the service deployment phase.

There are a number of issues, including:

• The source of funding for the trials
• Packaging and pricing of the ITS services
• Border transparency for ITS services
• Integrating a national approach with local content.

There are many questions linked to these issues; the answers are beyond the scope of this study and will have to wait for the detailed planning phase.

It is important that governments back this project as soon as possible. It is unlikely that the venture will succeed without government seed money to get it started.

There are no legal or institutional barriers to the radio industry offering ITS services. The radio broadcaster are well-established in the distribution of traffic and weather information; the technology is different, but the issues are the same. The CRTC has already published guidelines for the use of ancillary channels.

The broadcasters currently have a significant edge in this market based on the radio broadcast infrastructure and their position in the market as a provider of weather and traffic information. This market is currently wide-open in Canada. The window of opportunity will start to close if and when other technologies are deployed, possibly including dedicated road-side transmitters. The Project Team recommends that the industry move quickly to establish itself in this potentially large market.