Many were reluctant to predict how he would perform after coming into the job from outside the media.

He's a great believer in public service broadcasting and the maintenance of standards

Susannah Simons GWR

But radio companies - many of whom are hoping the new Communications Bill will help make mergers and consolidations easier - were most enthusiastic about the man who they described as a "free marketeer".

"It's a hugely important job, as far as we're concerned," GWR director of communications and former Today presenter Susannah Simons said.

"It's very good news. He's got this reputation for being a skilled manager and organiser, and I think that means he will be well able to cope with such a huge job.

"Because he is an economist, and has something of a reputation as a free marketeer, that pleases us.

Lord Currie was a government economist

"Also, he's a great believer in public service broadcasting and the maintenance of standards, so I think he'll be quite hot on the content issues too," she added.

But the appointment of a Labour peer has been derided as "cronyism" by the Conservative Party.

"It's genuinely a pity that we find yet another person in a position of power who is an active Labour member," Tim Yeo, the shadow trade and industry secretary, told Media Guardian website.

Capital Radio chief executive David Mansfield said he was "incredibly pleased" at the choice.

"Capital Radio warmly welcomes Lord 's appointment as Ofcom chairman," he said.

"I look forward to his involvement in establishing a light tough media environment."

'Challenging'

Television companies were more circumspect.

"It's a huge job, a very public and challenging role, and we very much look forward to working to him," said Channel 4, whose public service remit will be regulated by Ofcom.

The BBC - who will also be subject to some of Ofcom's rules - echoed the sentiment that they were looking forward to working with the Labour peer.

A spokesman for BSkyB said the digital broadcaster would make no comment.

No-one from ITV, Granada and Carlton was available for comment.