A Channel 4-led consortium won the right yesterday to launch ten new digital radio stations, with a range of broadcasters, including Walt Disney and BSkyB, hoping to offer profitable alternatives to the dominant BBC.

The new stations will be available starting next July after Channel 4 and its partners have spent about £10 million in deploying a national radio network and marketing digital radios to consumers.

Nathalie Schwarz, the bid leader and director of radio for Channel 4, said that its investment would “pay back in the medium term” via income generated from three wholly owned stations and, to a lesser extent, spectrum rental charges on the other seven stations.

Channel 4 beat competition from the Macquarie-owned National Grid Wireless (NGW), which published few details about its bid. NGW also prompted a row when it promised to include Channel 4 stations as part of its bid without the agreement of the broadcaster.

Tony Moretta, NGW’s general manager for broadcasting, said: “This was an extremely close contest and we are obviously disappointed at not being awarded the new licence, especially as we believed that our proposal offered a cost-effective platform for the expansion of commercial digital radio.”

Channel 4 will own 55 per cent of the company that owns the radio spectrum that underpins the service. Emap, UTV and Carphone Warehouse each own 10 per cent, while UBC Media and a BSkyB-Chrysalis Radio joint venture each hold 5 per cent. BSkyB is 39.1 per cent owned by News Corporation, parent company of The Times.

Most of the ten stations hope to reach up to 1.5 million listeners a week by the fourth year of operation, with the exception of Sunrise Radio, the Asian network, and Radio Disney, which are targeting smaller figures, and Sky News Radio, the Sky Chrysalis partnership, which hopes to reach nearly 1.9 million. The lineup includes Talk Radio, from UTV, which will be a more serious sister station to its existing TalkSPORT; Closer, from Emap, aimed at women aged 30-plus and hoping to build on its existing Closer weekly magazine; and Virgin Radio Viva, from the SMG-owned station and aimed at younger women.

Channel 4 plans tie-in programmes with popular and serious shows as it tries to duplicate the BBC’s success in cross-promoting brands. Its three stations are aimed squarely at the BBC – with the music-oriented E4 stationtargeting Radio 1’s audience, the speech-based Channel 4 radio aimed at Radio 4 and Five Live, and Pure 4 hoping that an “in-depth” approach to music will make inroads into Radio 2’s audience.

Ms Schwarz said that Channel 4 had begun conversations with potential presenters; the television broadcaster is particularly unhappy that talents such as Russell Brand and Dermot O’Leary are on Radio 2.

— The BBC, Channel 4 and Virgin Media have criticised BSkyB’s seizure of a 17.9 per cent stake in ITV, arguing that it weakened competition and would reduce plurality in news. Their remarks were in submissions to the Competition Comission, which is examining the £940 million purchase.

55%: Channel 4 stake in company behind alliance’s stations

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