Digital One cuts rates, wants new stations

Digital One, the company that operates the UK's sole national DAB Digital Radio multiplex, has announced it is cutting its carriage costs in 2009 and is searching for new stations.

At present, only Classic FM, Absolute Radio, Planet Rock, talkSPORT and a birdsong channel are carried on the multiplex. A number of stations such as Core, Oneword and theJazz left the multiplex last year and GCap - before its merger with Global Radio - called the platform "not... economically viable".

Digital radio's challenges last year came despite figures showing that listening via DAB continues to rise. Last month, the Digital Radio Working Group recommended to the government that a clear migration plan to digital be established and suggested that new national digital radio stations would accelerate DAB take-up further.

"We’re turning the ideas set out in the DRWG’s report into actions," said Digital One acting chief executive Glyn Jones. "That includes looking hard at how Digital One can offer lower carriage costs. In turn we’re expecting that stakeholders involved in the Working Group, and other companies with the ambition to launch new national radio stations in 2009, will step up and engage with a view to adding compelling new choice for consumers."

Jones confirmed that Digital One's carriage costs would be cut for 2009 but suggested they would rise again to fund a transmitter build-out programme.

"We’re expecting that prices will initially be set below Digital One’s 2008 rate card," he said. "One reason for that is to help provide an incentive for people to invest in high quality services. But, over time, companies providing new services will be expected to contribute to the costs of a transmitter roll-out plan which was something also identified by the DRWG as important."

Digital One has placed an advertisement in the national press asking for "successful, established brands and innovative new stations" to pick up capacity on the multiplex.