GCap has joined forces with BT and Arqiva to make a bid for the digital radio multiplex being auctioned by Ofcom in a consortium expected to be led by the telecoms group.
Ralph Bernard, the chief executive of GCap, yesterday confirmed the planned consortium application but said that GCap would be allowed only a minority stake in a bid because it owns the majority of the existing national commercial multiplex, called Digital One.
The launch of the multiplex will mean that listeners could be tuning in to up to ten national digital radio stations by 2008.
Channel 4 is another party set to bid to become the second national commercial digital operator, the prize asset that the television broadcaster wants to win to launch into radio. If successful, the broadcaster would run up to ten national radio stations for a minimum of twelve years.
Andy Duncan, the Channel 4 chief executive, recently promised to bring its risk-taking television approach to radio. He wants to launch radio stations to appeal to a younger generation, possibly by using its key Channel 4 brands. The radio division is led by Nathalie Schwarz, formerly director of strategy at Capital Radio.
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The new licence is being advertised and bids are to be lodged by some time in February next year. Ofcom will then consider the applications for a further three to four months before announcing the winner in early summer.
Channel 4 has also reportedly been calling on the Government to extend the multiplex licence to 20 years, as the proposed 12-year licence may not allow it to develop its service sufficiently before having to renew the deal.