National Grid Wireless and C4 in multiplex bid dispute

Channel 4 and National Grid Wireless, the two companies behind the bids for the second national digital multiplex bid, have descended into a war of words following the latter's revelation that it had reserved two spaces on its proposed multiplex for 4Radio stations.

4 Digital Group, Channel 4's consortium, headed by Nathalie Schwarz, immediately stressed it did "not recognise" the descriptions of the Channel 4 stations in National Grid Wireless's bid.

National Grid Wireless hit back with a statement saying it had "left open the actual specifics of the format" and the reserved slots were "very similar" to two of the 4-branded stations in the Channel 4 bid.

National Grid Wireless has yet to divulge full details of its bid, stating only that there will be 12 new national digital radio services, naming Radio Luxembourg, Fun Radio, Premier Christian Radio, Colourful and the BBC Asian network.

No partners or major station providers have been named. GCap is a joint venture partner in Fun Radio, but confirmed it is not involved in the bid beyond that.

One insider said: "GCap has enough on its plate at the moment, concentrating on its other digital radio stations and is not in any position to be entering new partnerships on the second multiplex."

Ofcom said the applications would "be assessed against the statutory criteria" and a decision would be made within four months. When judging the bids, it will be looking for the area of coverage offered, how much promotion of DAB the bidder is committed to and an appeal to different tastes and interests.

An Ofcom spokesman added: "Whoever wins, we believe that the second national commercial digital radio multiplex will provide listeners with a wide range of exciting new services and help to promote a strong and vibrant radio industry, fit for the digital world."

4 Digital Group has teamed up with Chrysalis, BSkyB, Emap, UTV, SMG, CanWest, Disney and Sunrise Radio for its stations, with UBC Media, Carphone Warehouse and BT Movio on board to aid transmission and technology advancement.

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