News story about a public disagreement between UK commercial radio owners GCap Media plc and Chrysalis plc over a plan by Ofcom to advertise a licence for a second DAB digital radio national multiplex, written by Grant Goddard in August 2005 for The Radio Magazine.

1. NEWS: GCAP MEDIA AND
CHRYSALIS AT LOGGERHEADS
OVER OFCOM'S PLAN FOR
SECOND NATIONAL DAB
DIGITAL RADIO MULTIPLEX
by
GRANT GODDARD
www.grantgoddard.co.uk
August 2005

2. A war of words has broken out between radio groups GCap Media plc and
Chrysalis plc over the former’s antipathy towards Ofcom’s plan to advertise
another national DAB digital radio multiplex licence.
Round One started in June at the Future of Broadcasting conference when
GCap executive chairman Ralph Bernard accused Ofcom of jeopardising the
whole radio industry by opening the floodgates to further digital services on a
new national multiplex. "I'm sure it would put many stations at risk of going
under," said Bernard. "It cannot be in the interests of anybody to stop the
development of quality radio services and replace them with a glut of ‘jukebox'
services." He added: "Let's be clear, the companies who are calling to be
allowed to enter the national digital world now are those who would not seize
the opportunity when it was presented in 1998. Chrysalis, GMG, Virgin Radio
and EMAP were all perfectly capable of deciding to apply for the national
multiplex licence in 1998. But they didn't. Now, we and the BBC have created
a market, albeit still in a fledgling state, but with a good prospect of success,
and they want to join in as free riders."
Round Two followed last month when Daniel Owen, Chrysalis Radio’s director
of regulatory and public affairs, replied publicly to the criticism of his company:
“Ralph Bernard conveniently forgets that when the first national multiplex was
advertised, the Digital One consortium included all three existing INR
[independent national radio] services – Virgin dropped out later on – and the
dominant transmission provider. It was not only right that that consortium
should win the licence, it was inevitable. We all support additional local digital
radio and there is sufficient spectrum in Ofcom's plans to do this and still have
another national platform. A second national multiplex will be a huge boost to
digital radio's aim of achieving critical mass, and it should be welcomed by all
those who support DAB, including Ralph.”
Round Three took place last week when Quentin Howard, chief executive of
DAB national multiplex owner Digital One, took aim at Chrysalis and said
publicly: “Owen will be familiar with the Radio Authority's unequivocal
description of ‘the first and only national commercial licence’ – he worked for
them at the time. However, he omits to mention that Chrysalis declined to join
the Digital One consortium which applied for that sole licence in 1998 …
Chrysalis didn't fancy the risk, but recognised the GWR Group's pioneering
investment in the digital future of radio. You have to have a short memory, or
be willing to play fast and loose with the facts, not to recognise Digital One's
legitimate expectation that there would only be one national commercial
licence, for at least the first licence period. Chrysalis has been free to apply to
be a service provider on Digital One’s multiplex, but has declined. The only
demand for more national services and spectrum is coming from those
companies which declined to take the biggest risks early on. Meanwhile,
Stephen Carter tells us that Ofcom's proposals for local multiplex spectrum will
leave 89 existing local radio stations, and almost all community stations,
without any possibility of migration to DAB digital radio. If Chrysalis really
supports local digital radio, it will join us in requiring Ofcom to allocate new
spectrum first and foremost to achieve universal local migration and to conduct
News: GCap Media And Chrysalis At Loggerheads Over Ofcom's Plan For Second National DAB Digital Radio
Multiplex Page 2
©2005 Grant Goddard

3. News: GCap Media And Chrysalis At Loggerheads Over Ofcom's Plan For Second National DAB Digital Radio
Multiplex Page 3
©2005 Grant Goddard
a proper, evidence-based market impact assessment before it comes to any
decision.”
[First published in 'The Radio Magazine' as 'GCap v Chrysalis In Three Rounds', #695, 3 August 2005]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk