Capital Radio and GWR threw down a challenge to the BBC and ITV on Wednesday, unveiling a ?711m($1.3bn) merger to create the UK's first commercial radio giant capable of luring listeners away from BBC radio and advertisers away from television.

The companies said the creation of a national commercial radio network would help them build stronger brands to attract audiences, advertising and talent. New digital platforms and technologies would help the merged company compete with the BBC, which has dominated analogue radio, they said.