Government watchdog, Ofcom, has announced plans to allocate three additional blocks of radio spectrum filling the gaps in local multiplex coverage, resulting in local DAB digital radio services being accessible to every part of the UK.
The new proposals will also see a block added to national commercial multiplexes, offering additional choice to as many listeners as possible.
According to reports in today’s Times, broadcasters interested in bidding for the new blocks of spectrum include BT, Absolute Radio, Emap, Chrysalis and Australian private equity investor, Macquarie. UTV has also confirmed that it is considering making an offer.
Ofcom’s plans will not please GCap Media however, with the majority shareholder in the Digital One national digital network likely to sue the media regulator if it goes ahead with the proposed national digital network (see New Multiplexes Are Illegal – Bernard).
Speaking at the recent MediaTelINSIGHT Digital Radio and Beyond Seminar, Ralf Bernard, chief executive of GCap Media explained the company’s dismay at Ofcom’s plans, saying: “We built the national network of transmitters, and in return we were led to believe we would be the only player in the market for a substantial period. We trusted the figure of authority, and now after creating the market, Johnny Come-latelys want to fill their boots. It’s not right, it’s not fair and I think it is illegal.”
The radio boss added that the decision on whether or not to pursue legal action would be taken by GCap by the end of January, explaining: “You do not threaten to take a regulator to a judicial review lightly.”
Arguing the case for the proposed plans, Stephen Carter, Ofcom chief executive said: “Additional capacity allows more radio services to join television and telecoms in the transition to digital. For listeners, this new capacity will mean more choice, more new services and greater coverage.”
Digital radio is forecast to enjoy strong growth over the next five years, with the DRDB predicting that by the end of 2009 there will be around 20 million digital radio homes in the UK, up from 1.2 million at the end of 2004. This represents a huge fifteen-fold increase, with an expected household penetration of 40% by the end of 2009 (see DRDB Predicts Massive Growth In Digital Radio).
Related Links
