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Digital radios are set to fall in price from £300 to £100 within the year, making them accessible to a larger percentage of consumers.

National multiplex operator Digital One has completed a £3m joint venture with Imagination Technologies to produce a low power, low cost digital radio receiver that will more than half the cost of the product.

The new digital baseband chip is small enough to incorporate into any existing entertainment system from personal stereo to hi-fi.

Chief executive of Digital One Quentin Howard said: "What we need now is smaller, affordable radios so that people can actually enjoy the clear, interference free radio programmes - Digital One and Imagination Technologies have now made that possible."