Study: Internet Radio Could Impact SDAR, Traditional Radio

By Amy Gilroy -- TWICE, 9/13/2007

Glendale, Calif. — If mobile WiMAX is adopted as some predict, it could impact current car technologies including satellite radio and traditional radio, according to a new study by Bridge Ratings.

Mobile WiMAX could enable the use of wireless Internet radio in the car, creating a potential competitor to traditional and satellite radio, said Bridge Ratings.

After nine years of deployment, wireless Internet radio in the car could cause average satellite radio listening rates to drop from a current average of 21 hours per week to just over 14 hours, said the study. Similarly, average listening rates for traditional radio could drop from about 19.5 hours per week to under 14 hours per week.

No suppliers have announced mobile WiMAX Internet radio devices yet for the car, but it is possible such devices could be available in one to two years, said Dave Van Dyke president and CEO of Bridge Ratings.

Earlier this month, Sprint Nextel announced it would begin to deliver mobile WiMAX to the Chicago and Baltimore/Washington markets by the end of the year followed by approximately 15 additional major cities in 2008. Sprint Nextel in combination with Clearwire said its mobile WiMax network would reach 100 million people by the end of 2008.

The Bridge Ratings study was conducted in July and August through interviews with 2,200 consumers.