Channel 4 have accused GCap of employing spoiling tactics regarding the expansion of digital radio in the UK.
As previously reported, OfCom is currently planning to launch a second national commercial digital radio multiplex, which means another company can operate a national digital radio network as well as Digital One, who own the current national commercial multiplex and who, in turn, are 63% ownered by GCap.
GCap weren't too happy when OfCom announced those plans, because they had been promised when they invested in the Digital One network that it would be the only national digital multiplex in the commercial radio market. They threatened to sue OfCom over the plans, but seem to have been placated by OfCom insisting that whoever takes on the second multiplex must provide services that complement rather than compete with those operated by Digital One.
Channel 4, who are among the bidders for the new multiplex, essentially say that puts GCap in an unfair position - because they can launch every possible commercially viable radio format on their multiplex before the new one is awarded, and then stop the new multiplex owners from operating the formats which are most likely to be profitable. They point to the fact that GCap have just added their golden oldies station Capital Gold to the Digital One network as evidence that bosses there have a strategy to use OfCom's 'you must complement' rule to their competitive advantage.
Channel 4 have formally aired their concerns in their submission to OfCom on the expansion of digital radio. OfCom and GCap are yet to comment.