MUMBAI: British broadcaster Channel 4 has abandoned its plans to launch three digital radio stations as it struggles to cope with financial recession  The broadcaster, reports say, can no longer afford the ?10 million cost of launching the service as the advertising revenues slump declined.

Channel 4's chief executive Andy Duncan said in a statement that the decision had been taken reluctantly but the broadcaster had little choice as it was unaffordable for the enterprise.

Channel 4 had planned to launch the first of its stations, E4 Radio by early next spring. The broadcaster had planned to launch three national digital radio stations to compete with the dominant BBC. The 4 Digital group was awarded a 12-year licence to run a digital radio multiplex in July 2007. Channel 4's partners in the conglomerate, BSkyB, Bauer Radio and Carphone Warehouse, UBC Media and UTV were planning to launch stations on the multiplex in addition to Channel 4.

Channel 4 had earlier held talks with Global Radio about merging the two commercial frequencies blocks but the proposal break through and resulted in the broadcaster abandoning the three digital radio stations.