New Technology Idea: Philips To Launch Mini Hi-Fi Internet Radio System In U.S.

Philips Electronics plans to launch a �mini hi-fi� radio system in September that will be able to access thousands of radio stations around the world via the Internet, the company says.

The system, which will first be launched only the U.S., functions without a PC. However, it requires a broadband Internet connection - either digital subscriber line (DSL) or cable - and a gateway router with DHCP/NAT support.

The so-called FW-i1000, a boombox-style system that includes a CD changer and cassette decks, is being marketed first in the U.S. because broadband penetration is higher in America than elsewhere in the world. The company plans to offer the system next year in Europe.

Simon Poulter, a spokesman for Philips Consumer Electronics, told Newsbytes that the system will offer high-quality audio and always-on service because it is connected directly to a dedicated broadband line without a computer.

People who like to listen to the radio and surf at the same time will find the system practical, he said. A Webcast via the FW-i1000 consumes about 128Kbps, meaning that even users with a low-end DSL service of 384Kbps will in most cases still have plenty of bandwidth to surf.

�Unless you are streaming video or downloading huge files, the impact of listening to Internet audio should be hardly noticeable under normal Internet PC use,� he said.

Poulter conceded that there are already set-top radio boxes that connect directly to the Internet without the need for a PC. But he said the FW-i1000 is more desirable.

�The FW-i1000 is, at the end of the day, a conventional hi-fi system which just happens to have an additional button: the Internet 'Connect' button,� he said.

The FW-i1000 is not cheap. Poulter said the device, currently beginning production in Singapore, will retail in the U.S. for $499.

Philips has not yet decided what sort of Internet radio product to launch in Europe.

Poulter said Philips is confident that U.S. demand to listen to foreign radio stations will be strong enough to make marketing the system worthwhile.

He cited statistics showing that 22 percent of 16 million U.S. college students listen to streaming audio at least once a week, and 66 percent of computer owners in the U.S. tune in Internet radio.

And, he said, millions of expatriates would be interested in listening to radio stations from home.

�I'm a good example,� Poulter said. �A British soccer fan living in California who wants to listen to live commentary of important games.�