LONDON (Alliance News) - Media and communications regulator Ofcom on Friday awarded the UK's national digital radio multiplex deal to the Sound Digital consortium, comprising broadcast infrastructure company Arqiva Ltd, radio company Bauer Media Group and media company UTV Media PLC.
Under the deal, digital radio listeners will be able to listen to range of new Digital Audio Broadcasting radio stations set to launch next year. Ofcom sought applications to run the service in July 2014.
UTV, confirming the contract award later Friday morning, said Sound Digital has committed to launching the service within 12 months of the Ofcom decision, with UTV planning to launch four new radio stations on the service in 2016.
Those new stations will be talkRADIO, talkSPORT 2 and talkBUSINESS, along with Virgin Radio, which will return following the signing of a 12-year licence agreement between UTV and Virgin Group.
UTV intends to invest around GBP4 million in the project in 2016, including capital expenditure of GBP1 million, in order to set up the stations. It intends to make a further GBP1 million investment in 2017, before the stations then move into profit thereafter.
"Today's announcement is wonderful news for our staff and our business and with our partners Bauer Media and Arqiva represents an exciting opportunity for the commercial radio industry to offer listeners a distinctive new range of digital stations in the coming years. I'm confident that our heritage and experience in radio broadcasting will make these stations a success," said UTV Chief Executive John McCann.
UTV shares were down 1.2% to 166.00 pence on Friday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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