It is planned that the new service will deliver a wide range of digital multimedia services in real time to mobile phones and PDAs at a similar rate to broadband internet.
News of the launch follows GWR joining the music downloading business last month with a new service, "Hear it Buy it Burn it", which allows listeners to buy songs they hear on the radio.
According to GWR, which owns the digital station Core, the launch should also help boost the number of digital radios as Digital Audio Broadcasting digital radio chips are incorporated into mobiles and other devices.
Plans are for the venture to launch in 2005 and initially broadcast within the M25 area of the South East with nationwide services expected by the end of 2006.
The new venture, which will be operated by BT, uses Digital One's digital broadcasting capacity, which is 63% owned by GWR, running alongside the eight national digital radio stations.
As well as licensing digital radio capacity, GWR will contribute £2.75m over the next 18 months in exchange for a share of the venture's revenues. GWR is expecting the new service to provide a significant new revenue stream with more than £5m expected by March 2008.
Ralph Bernard, GWR executive chairman, said: "The introduction of DAB digital radio chips into mobile phones and PDAs will be a major boost for digital radio by significantly increasing penetration, particularly as these types of devices have a much shorter replacement cycle than traditional radios. This innovative convergence project will also provide GWR with an additional income stream."
Services would be automatically updated with no need to dial up to get the latest news and sport. Every time the user picks up their mobile the latest information will be available to browse.
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