Ofcom gives 4Digital the OK to delay multiplex launch

LONDON - Channel 4-backed 4Digital Group, the planned digital radio platform, has been granted formal permission to delay its launch by communications regulator Ofcom.

4Digital Group chairman Nathalie Schwarz
4Digital Group chairman Nathalie Schwarz

Required under the terms of its original licence to launch in July 2008, Ofcom has now agreed to give the 4Digital Group until the end of summer to put together a revised timetable.

An Ofcom spokesman said: "Ofcom has allowed 4 Digital Group to delay the launch of its national radio multiplex licence beyond the original July 2008 launch date. However, Ofcom has not yet agreed a revised launch date and has asked 4Digital Group to provide updated plans, including new timings, by the end of the summer for Ofcom's approval."

However, the revised launch timetable is unknown. A Channel 4 spokesman said: "We are not in a position to make any announcements at this stage."

The new launch timetable depends on the outcome of discussions between newly installed GCap Media chief executive, Ashley Tabor, and 4Digital Group chairman, Nathalie Schwarz. The two sides are understood to be examining ways in which the planned 4Digital Group multiplex could be combined with Digital One, the digital radio platform 63%-owned by GCap. At present, there are too many digital radio channel slots provided across both multiplexes and not enough demand to fill them all.

Channel 4 is understood to be continuing with its original plans for the 4Digital multiplex and the launch of E4 radio should negotiations with Tabor fail to reap an agreement that suits both parties.
A radio figure close to the 4Digital Group said: "Why would Channel 4 want to take on the cost of building a second multiplex when it could just partner with an existing one and launch its services as planned?

"It also hasn't appointed a sales chief yet and anyone it did appoint would probably need to give a few months' notice and then would require some time to assemble their team and bed some sales in.

"If Nathalie can't strike a deal with Ashley, then she is far better waiting until spring next year to launch. The market conditions should be better and her team would have more time to sell and to prepare."

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