Radio 2 (Australian radio station)

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This article refers to the Radio 2 in Australia, for BBC's Radio 2 see BBC Radio 2.

Radio 2 is an Australian radio network transmitting via a series of 50 AM stations throughout Australia, operating on frequencies above 1500kHz. Radio 2 also transmits via pay television audio services on Austar and Foxtel digital services, on the WorldSpace service, via the AsiaStar satellite, and also via its website.

Radio 2 is owned and operated by WorldAudio Limited ASX: [WAG] and is based at Sydney Olympic Park.

Contents

0.1 Criticism
0.2 Technical Limitations
0.3 Radio 2 in Administration
0.4 External link

Criticism

One of the main criticisms that Radio 2 attracts is the availability of its signals. Often these transmitters are located outside their intended target area. Additionally, the Australian Standard for AM Broadcasting (and the Australian Broadcasting Authority designation of the Broadcast Services Band) states that the broadcast spectrum available for AM transmission is from 525 kHz to 1605 kHz, in steps of 9kHz commencing at 531.

Technical Limitations

Technical limitations with off-band broadcasting on what is commonly referred to as the "Extended Band" include a 4.5kHz audio roll-off requirement with full attenuation at 6KHz. Transmitters may operate at a maximum power of 400 Watts and adjacent services may transmit as little as 30 km away from each other. This causes adjacent-channel interference, and interference from nearby services operating on the same frequency. With the audio limitation, extended band services generally sound poorer than standard am broadcast services.

Radio 2 in Administration

Radio 2 had raised a large sum of money since its commencement in a series of public share offers. This was for the purpose to develop and operate a National Commercial Radio Network, doung so under the provisions of a "Section 40" Commercial Radio Licence which was attached to otherwise standard non broadcast band Narrowcasting frequencies.

A trading halt on the Australian Stock Exchange on 16 March 2006 was followed by an announcement on 21 march 2006 that Administrators had been appointed to the company. The Administrators had halted all personality broadcasting and replaced it with 24 hours/day music and sought expressions of interest in purchasing the entire network as a primary objective and if this was not possible the sale of parts of the network to different buyers.

This article from "The Age" newspaper in Melbourne:

By By John Lehmann (25 April 2006)

THE administrator of digital radio aspirant WorldAudio will hold talks with two potential buyers this week who may be interested in paying as much as $5 million for the failed network.

Bob Elliott, of accounting firm Hall Chadwick, said yesterday that if the talks failed, he would begin negotiations with as many as 17 other parties who have expressed interest in buying parts of the network. The Sydney-based company, which counts Harvey Norman executive chairman Gerry Harvey and Ten Network director Laurence Freedman among its investors, called in administrators in March.

WorldAudio presenters, who included radio veterans Mikey Robins and Ian Rogerson, were told this month that the station would switch to automated music until creditors had decided whether to find a buyer or seek more funding.

WorldAudio has burned through $6.5 million from its float in 2002, plus another $8million raised in 2004, without gaining a solid foothold in the market with its network of 48 low-powered AM stations. Company accounts lodged earlier this year showed negative operating cash flows of $2.4 million for the quarter to December 31 and advertising revenue of just $126,579.

Mr Elliott, who declined to identify the potential buyers, said the Australian Communications and Media Authority had indicated the company stood a "reasonable chance" of obtaining a trial digital licence if it could fund it.

Before calling in administrators, the company held high hopes of being able to convert its low-powered stations to digital, a change that would have made its signals as strong as rivals who had paid more than $100 million for full-strength signals. But Communications Minister Helen Coonan said again last month the first digital licences would be given to mainstream radio companies, such as Southern Cross Broadcasting and Austereo Group, which would start launching digital services in 2009.

Other radio companies, such as WorldAudio, would be banned from switching to digital until 2015

Mr Elliott said he was aiming to identify by the middle of next week whether the company could be sold as one entity, or broken up and sold to several buyers.

"WorldAudio's Radio 2 Network has an audited national audience of some 300,000 people and is an attractive asset which should be of considerable appeal," he said.

He said the company, which operated from Sydney Olympic Park, could also attempt to raise further money from the market.

Creditors decided at a meeting last week to meet again not later than June 16.

An additional time period was granted to the administrators, which expires Mid July 2006. Afterwhich the group will be broken up if required.

External link

[Official site]