Existing radio licence holders 'may not be suitable'

Current owners of radio licences like UTV and Mr Denis O'Brien are unlikely to actively promote a new alternative rock station because it might damage their existing radio assets, it was claimed yesterday.

One of the consortiums bidding for a new alternative rock service for Dublin, Radio 11, claimed existing licence holders might not be the most suitable winners of the licence.

Radio 11, along with four other consortiums, is bidding for the new licence in a competition being held by the Broadcasting Commission of Ireland (BCI). The detailed plans of each consortium were released by the BCI yesterday.

In its submission Radio 11, which is backed by several leading entertainment and music industry figures, claimed concentration of ownership was a relevant issue when awarding the licence.

"The local radio sector is dominated by a small number of owners.

"Current Dublin or national licence holders are unlikely to risk damaging their cash generating stations to make this station the success it needs to be," says its submission.

The Radio 11 bid is supported by Mr Graham Beere, founder of Abrakebabra; Mr Johnny Ronan, the property developer; Mr Gavin Bonnar, a barrister and husband of Sharon Corr of the Corrs; and Mr Alan Moloney, chief executive of Parallel Films.

The other shareholders are Mr Dave Kavanagh, a former manager of Clannad and Mr Robbie Fox, a nightclub owner and restaurateur, who owns Renards nightclub in Dublin.

Radio 11 is up against several strong consortiums, one involving Mr Denis O'Brien's Communicorp Ltd.

Another consortium is led by U2 manager Mr Paul McGuinness and concert promoter Mr Denis Desmond. This group also includes a prominent presence by alternative rock station Phantom FM.

Mr Dermot Hanrahan, former managing director of FM 104, is heavily involved in a consortium known as Zed FM, which also includes the editor of Hot Press Mr Niall Stokes and Bob Geldof. UTV, which already owns the Dublin station Q102, is promoting a brand called X FM, which is already operating in the London market.

The consortium involving Mr O'Brien is known as Raw. It also includes the accountant Mr Greg Sparks and Mr Lee Thompson, who was previously associated with Yahoo UK and Ireland.

In its submission Raw disagrees strongly that existing operators run the risk of cannibalising their existing services.

"When Spin 103.8 and NewsTalk were introduced many commentators believed they would cannibalise the existing share of local radio.

"Instead it has continued to grow. Local radio now accounts for 47 per cent of all time spent listening to radio in Dublin."

Its submission estimates the national radio market to be worth about €130 million, with the Dublin market worth about €40 million of this.

It estimates that RTÉ Radio takes about €12.5 million of this in advertising, with Today FM taking €4.5 million; 98 FM taking €8 million; FM 104 taking €8 million; Q 102 taking €4 million, with the three other stations, Spin, Country and Newstalk, taking about €1 million each.

In its submission the Phantom group points out that there is no distinct rock service available in Dublin city and county and Irish artists are now well supported by mainstream radio.

For its part Zed FM points out that an alternative rock station can be viable once the programming is not overly prescriptive and the advertising is priced towards premium levels.