Consortiums contest radio licence decision

Two consortiums that were not awarded Dublin's "youth" radio licence are seeking a judicial review of the decision, The Irish Times has learned. Pulse FM and Storm FM will ask the High Court on Monday to suspend the granting of the licence to Spin FM, contending that the Independent Radio and Television Commission (IRTC) has not behaved fairly.

While the process is not expected to take as long as Orange's challenge of the decision by the telecoms regulator in August 1998 to give the third mobile to Meteor, the move could delay the launch of the radio station for many months.

The IRTC said last night it would fight the legal challenge. The commission said it had responded to each request from the losing consortiums for further information, and still believed its decision was correct.

On October 11th last, the IRTC announced that Spin FM, the consortium associated with accountant Mr Ossie Kilkenny, had won the licence. The unsuccessful applicants included Pulse FM, associated with U2 manager Mr Paul McGuinness; Storm FM, associated with nightclub owner Mr John Reynolds and U2's The Edge; and Red FM, associated with Mr Dermot Hanrahan, of FM 104.

A series of letters between representatives of three of the radio stations - Pulse, Storm and Red - and the IRTC has been seen by The Irish Times. Beginning shortly after the decision was announced, the tone of the correspondence becomes increasingly abrasive as the weeks pass.

The first salvo came from the radio stations, "to urgently request clarification of the criteria used" by the IRTC to award the licence. It questions the participation of the businessman Mr Denis O'Brien in the winning consortium. Mr O'Brien, who controls Dublin's 98 FM, also owns 25 per cent of Spin FM.

The IRTC replies that the winner is the applicant "that receives the greatest level of support among the members" of the commission.

"It is extremely difficult if not impossible and undesirable to give reasons for decisions," the IRTC adds.

By November, the radio stations write that they are "alarmed" by the IRTC's logic, and that they "cannot understand" how the commission permitted the licence to go to Spin FM, in spite of Mr O'Brien's involvement.

The IRTC replies that it considers some of what the radio stations have written as "false and contrived". The radio stations threaten legal action, and the IRTC says it will take "every step to defend its position".

Industry sources said Pulse and Storm would seek a judicial review of the decision on Monday.

The IRTC said last night the process had been the most open of all licence applications to date.

"The process was clear to everyone from day one. A full guideline to the submissions was produced, and then all the submissions themselves were as far as possible placed in the public record," said a spokesman. "The commission has behaved properly at all times. No issues were raised during the process."