BT to use radio for streaming media

BT and Classic FM owner GWR are to team up to deliver nationwide multimedia to a new generation of mobile handsets.

According to reports in the <i>Financial Times</i>, the two aim to use the digital radio spectrum to automatically stream news, sport and entertainment without the need to through the dial-up and download process.

The two companies are said to believe that the scheme will encourage demand for data subscription services.

GWR has confirmed that it has entered into a conditional agreement with BT. The radio company owns a 63 per cent stake in the national broadcaster for eight digital radio channels.

No BT statement on the project was forthcoming. A BT spokesman would not deny the report, however.

Ovum principal analyst Mike Cansfield said: "BT is keen to distribute its rich media and it has lots of material but I haven't any details on this plan."

Similar services to those being planned by the UK duo are in operation or planned in the Far East but those use current mobile phones. Using digital radio frequencies will require a new device or modifications to future mobile handsets.