Stop DAB development. License fee rebate to DAB listeners. Use internet & mobile. Keep FM.
Here's what I would do, If I was among the powers-that-be:
1) Stop further DAB development: technical, transmitter roll out/upgrade, marketing, administration, now.
2) Pass on the resultant potential cost saving that the BBC makes to go towards offering a temporary discount of the license fee to those who own at least one DAB set.
3) Leave DAB services running as it is - no further new services, no development, no new sets. Close it to new stations - it's proven to be uneconomical to commercial stations - all of them broadcast on other platforms anyway. Use spare capacity to increase bitrates of existing stations to improve listener experience.
4) Leave FM running as it is. If it ain't broke don't fix it for the sake of being digital. Digital does not always mean better.
5) Digital Radio Mondiale (DRM) - digital radio over AM. First need to tackle same atmospheric interference issues that prevail as with analogue. If this is fixed, don't roll out services using a consortium, walled-garden, big-players-only, multiplex approach which was the failings of DAB - make platform open to anyone with appropriate credentials to set up a station using their *OWN* AM/DRM transmitter.
6) BBC should embrace internet and mobile internet radio and be at the forefront of the development, with reasonable or better bitrates using modern codecs e.g. AAC+. Not drag their heals with Real at 64kbps.
7) BBC should make its internet streams available to be listed on all major Internet Station Directories - particularly the Nokia Internet Radio Application directory listing (for listening on mobile phones) where it is conspicuous by its absence.
8) BBC should educate the public and make them aware of the increasingly viable and generous 3G data packages available for internet radio listening - NOT scaremonger about their self-created Billshock(tm) term. This is not advertising: after all they promote how to receive digital TV by letting people know about Sky, cable etc.
9) Migrate broadband and TV user households from license fee to internet tax - same cost - not increased but use part of internet tax to fund BBC (as before), some of it to compensate for free content (e.g. youtube) to support creative industries and remainder to subsidise further mobile broadband roll out.