NGW sale shakes up radio multiplex bids

LONDON - The bidding process for the second digital multiplex has been thrown into disarray by the sale of one of the two bidders.

Senior figures behind Channel 4's bid have called on Ofcom to investigate competition issues surrounding its only rival, National Grid Wireless, following the sale of that company to an Australian bank with wide media interests.
The RadioCentre has also voiced its concern, asking members to get in touch if they think last week's sale means NGW's bid should be excluded under competition rules, and is considering contacting Ofcom.
The events follow the £2.5bn sale of NGW to Australian bank Macquarie. Macquarie subsidiary Arqiva owns 37% of the first digital multiplex, so if National Grid Wireless was now to be awarded the second licence, the bank would be able to influence digital radio operations across both networks.
Simon Cole, chief executive of UBC Media, a partner and shareholder in the C4 bid, said the sale "clearly raised competition issues" that he would expect Ofcom to investigate.
"It's unthinkable that any one company could own a substantial proportion of Digital One and the whole of Digital Two, but I expect Macquarie is aware of the comp- etition issues and if not already doing so, will be entering into discussions with the necessary regulatory bodies."
His views were echoed by other senior figures behind C4's 4Digital Group bid - which is seen as a clear frontrunner - though they did not wish to be named.
Ofcom refused to comment, saying only that the two applications for the multiplex were being considered by the Radio Licensing Committee and the sale of NGW was still subject to review by UK competition authorities.
An Arqiva spokesman said he was "confident [the company] can work through any competition areas", adding: "Until the competition issues [surrounding the purchase of NGW] are resolved, Arqiva and National Grid Wireless will operate completely separately with two business plans and everything running as it did before."
The RadioCentre's head of external affairs, Lisa Kerr, said: "This is an issue that is of interest to commercial radio, so we'll be assessing the potential implications and making a decision on whether we should be making any representations."

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