IT'STV, the firm that is believed to be the sole bidder to operate a national digital television network, has asked the Department of Arts, Heritage, Gaeltacht and the Islands for a one-month extension to give it time to secure a financial backer.

The firm, headed by former RTÉ executive Mr Peter Brannigan, submitted a bid for the licence to operate the digital service last year but was told it would not be awarded a licence unless it attracted a main backer.

It'sTV has secured seed funding from Delta Partners to prepare its bid but would require anywhere from €15 million (£11.8 million) to €85 million to roll out 40 digital TV channels and a high-speed internet service.

Mr Peter Brannigan said the firm asked for the extension and was in final negotiations with a US backer. The deadline to complete the competition to award a licence passed last night.