The consortium will launch 11 commercial digital stations by Christmas 2001 including specialist services for children, students, teenagers, young Asians and Afro-Caribbeans, and a general entertainment station called Time Out Live.
Lord Alli said, "Our research has proved viability of the market place and the choice of our services that will now be on offer and will attract a whole new generation of young people to radio."
DRg's shareholders including the GWR Group, Kelvin Mackenzie's The Wireless Group, SMG and Time Out.