A potentially controversial report on the impact of the licence fee on private sector broadcasters and RTÉ's role in the advertising market is expected before the Cabinet today.

TV3 have long demanded that an independent review be done of RTÉ's role in the advertising market.

The station has claimed that RTÉ has been engaging in predatory pricing and has used licence fee revenue to fund commercially orientated services.

If these allegations are backed-up in the report it would pose significant challenges for RTÉ.

However, a previous investigation by the Competition Authority ended on a positive note for the State-owned broadcaster.

Following representations from TV3 and other private broadcasters, the Minister for Communications, Mr Dempsey, decided to commission an independent review.

The team which undertook the review was headed by London based firm, Europe Economics, along with Irish-based firms Curtin/Dorgan Associates and PricewaterhouseCoopers.

Mr Dempsey told the Daíl recently the report cost the State €90,000.

Apart from meeting TV3 and RTÉ, it is understood the various consultants also met representatives of the independent radio sector and several large advertising agencies.

It is the first major study of how licence fee revenue is used.

Neither RTÉ or TV3 wished to discuss the content of the report yesterday, although it is understood TV3 provided the authors with a detailed dossier of allegations against RTÉ.

When he announced the commissioning of the report Mr Dempsey said: "While the review will examine the impact of the licence fee in general on other broadcasters it will primarily focus on what impact, if any, it has on the radio and television advertising markets," he said in a statement.

Mr Dempsey told The Irish Times last week that he would be slow to do anything to undermine RTÉ as an institution.