GCap Abandons Legal Action Over Second Multiplex

Radio giant GCap has backed down from its threat to sue media regulator Ofcom over the creation of a second national DAB multiplex.

GCap, which holds the majority share in the UK’s only national digital network, Digital One, had previously threatened legal action against the watchdog, with claims that it had acted unfairly and, according to chief executive Ralph Bernard, illegally (see New Multiplexes Are Illegal – Bernard).

However, Ofcom has now confirmed that the new multiplex operator will only be allowed to broadcast stations which do not directly complete with those operating through Digital One. Secondly, the regulator has stated that GCap will be able to bid for the second national licence.

Commenting on the latest developments, Bernard said: “We have been in the vanguard of digital radio development in the UK since the beginning and as sales of DAB sets reach the 3 million mark, we are confident the next phase of development is intended to truly broaden choice for listeners.”

The U-turn is in marked contrast to Bernard’s vehement criticism of Ofcom at last year’s Digital Radio and Beyond seminar, held by MediaTel Group in association with the MediaGuardian (see New Multiplexes Are Illegal – Bernard).

Speaking as part of a panel at the event, Bernard claimed that, “when [regulators] write words like ‘sole national licence’ and ‘one and only’ [they] should stand by those, not use weasel words to get out of it at a later date.”

Supporting his fellow panelist, Simon Cole, chief executive of UBC Media, was careful to advocate the wider choice of digital stations offered by increased multiplexes.

“I think Ralph should be congratulated for kick-starting digital,” he explained, “although I do think there’s room in the marketplace for more players, and the investment already made will pay off in the long run.”

GCap Media: 0207 663 7000 www.gcapmedia.com Ofcom: 020 7981 3040 www.ofcom.org.uk