New national digital multiplex licence and impact on radio sector.

Whoever Ofcom awards the new national digital multiplex licence to this summer, one thing is certain - that Channel Four Radio will make its debut on the UK airwaves.

Ofcom confirmed last week that only two bids have been received: the first from a syndicate led by Channel 4 and the second from National Grid Wireless, which has promised spectrum space to Channel 4.

The existing Digital One DAB national multiplex currently offers eight commercial stations, with the BBC operating a further 11. Therefore, with up to 10 new national stations at its disposal, the winner of the new licence could increase the national DAB offering by more than 50%, heralding the biggest explosion in the technology since the first Digital One stations launched in 1999.

"This is a vastly important moment for DAB, for radio in general and commercial in particular," says Digital Radio Development Bureau head of communications Mandy Green. "It will expand consumer choice, it presents options for more unique formats and it will inevitably mean penetration will increase."

The advantages of DAB are clear: the sound quality is better, tuning is easier and broadcasters can include more information in the spectrum space, but whether more choice will be good for commercial radio is open to debate.

Alongside the national DAB commercial channels such as Planet Rock and The Jazz, some 170 digital services are also broadcasting either locally on DAB or nationally via digital TV, while the internet is providing a forum for unlimited numbers of providers to offer radio services.

In such a climate, another 10 stations could be seen to be ...