Radio rivals call for Capital-GWR probe

RADIO groups are urging Ofcom to ban a merged Capital-GWR from bidding for FM licences for the next five years.

They also want the media regulator to police programme content to make sure the £667m group is broadcasting enough locallyproduced programmes across its 55 stations.

A combined Capital Radio and Classic FM owner GWR - in which Daily Mail parent DMGT has a 29.9% stake - would have a 40% share of the radio advertising market and 36% of the commercial radio audience.

Ofcom will advertise at least 30 FM licences over the next few years, including new regional services for the north-east of England and South Wales. They are a cheap way for radio groups to extend their reach. The largest licences are always hotly contested.

In confidential submissions-industry rivals say Capital-GWR should be prevented from extending its digital radio interests. Capital has not attached any conditions to its Ofcom submission beyond the initial merger details.

The Office of Fair Trading is expected to refer the deal to the Competition Commission for scrutiny before the year- end. It has set a November 2 deadline for third-party submissions.

Ofcom must also assess the merger. It has a duty under the Communications Act to enforce ownership rules. Trade Secretary Patricia Hewitt will decide if Capital-GWR should face a public interest test.

Meanwhile, Scottish Radio Holdings is preparing for a bid from 27% shareholder Emap. New SRH chief executive David Goode has appointed investment bank Greenhill to advise him on his options.