The decision of the Independent Radio and Television Commission (IRTC) to award the licence for the new national commercial radio station to the Radio Ireland consortium heralds the arrival of what could be a new and exciting player on the national radio scene. The business acumen and show business credentials of the successful applicant can hardly be questioned: the Radio Ireland consortium was led by the Riverdance producers, Mr John McColgan and Ms Moya Doherty and it also involved a broad range of other investors including Mr Dermot Desmond's Investment and Underwriting Group, The Cork Examiner and The Farmers Journal.
Although some may question the consortium's apparent lack of direct radio experience, few will doubt the success of the new venture if the verve and imagination which fired the Riverdance project is translated to the airwaves. The unsuccessful bidders, including the Ireland loo consortium in which The Irish Times was involved, will of course be disappointed by the outcome. But all will want to wish the new station well.
The opportunities facing the station are exciting. It can build on the still underdeveloped potential to provide a serious alternative to RTE's news and current affairs coverage. It can harness and develop some of the young talent responsible for the current renaissance in Irish arts and entertainment. It has the opportunity to reflect the astonishing social and cultural changes in Irish society.
But there are challenges as well as opportunities. Many of the factors which led to the demise of Century Radio five years ago are still at play - notably the unhealthy commercial dominance of RTE, which enjoys a generous slice of available advertising revenue and also draws income from the licence fee. RTE can hardly be faulted for its success in the marketplace - this is a tribute to the professionalism and energy of its programme makers - but its rivals face the formidable task of competing on uneven commercial terms.
The broadcasting environment in which Radio Ireland will compete is also very difficult. Ratings for RTE Radio One have declined, but the local radio stations which had still to establish themselves when Century went off the air have now gained a firm foothold. In the Dublin area, the new station will also have to compete with well established and successful stations like 98FM and FM104.
It may also be some time before the new station generates significant profits. Start up costs alone will amount to some £3.5 million and the general view in the industry is that it may be five years or more before the station pays its way. Commercial radio in Ireland is still not a licence to print money - at least in the short term.
That said, there is a pressing need to provide a quality alternative to RTE. Radio Ireland has exciting and ambitious plans; political coverage that delves "beyond the square mile around Leinster House"; new drama and documentaries; a news service which may be operated in conjunction with TV3 and a diverse range of programmes from the independent sector. It is to be hoped that the new radio station will deliver on these commitments and secure its place in the life of the nation.