The Broadcasting Commission of Ireland (BCI) has decided to only issue two new radio licences for Dublin because of concerns that four licences could threaten the viability of existing stations.
The BCI board, which met earlier this week, heard concerns that introducing four new stations to Dublin might pose serious challenges for newer operations such as Newstalk, Spin FM and Dublin's Country.
Instead, the BCI will advertise in the weeks ahead for a new alternative rock service for Dublin city and county and a multi-cultural/ethnic station for Dublin city.
A spokeswoman for the BCI said the decision would help the stability of existing stations, while also adding diversity to the radio market in Dublin. Community station Anna Livia will also have to re-apply for its special-interest licence.
The decision will come as a disappointment to some large radio groups who had expressed an interest to the BCI last year in providing more mainstream and commercial services.
Some 61 expressions of interest were submitted to the BCI. Among those who expressed an interest were Irish Press plc, FM 104, TV3, Thomas Crosbie Holdings, Scottish Media Group, newspaper executive Ms Barbara Nugent, Lite FM, former 2FM DJ Mr Tony Fenton, Setanta Media and a consortium linked to East Coast Radio. The chief executive of the BCI, Mr Michael O'Keeffe, described the response as "phenomenal".
TV3 proposed "a music and information-led classic rock" station in its submission, submitted by chief executive Mr Rick Hetherington.
Lite FM's incoming chief executive, Mr Scott Williams, expressed interest in a rock-based service on behalf of Lite.
In a submission from Mr Eamon de Valera, Irish Press plc said that a "music-based radio service supplemented by and mixed with talk elements" was needed.
Setanta Screens lodged a submission calling for an alternative rock music service. Setanta Screens is linked via its shareholders to Setanta Media.
One of the most prominent pirate radio services, Phantom FM, which is owned by a company called Wireless Media Limited, said in its submission a specialist alternative rock service was needed. Phantom is regarded by many observers as the early favourite to get the alternative rock licence.
Another group, Platinum Radio, called on the BCI to consider "a gold-based music service playing music from the 60s to today". This group was linked to former 2FM disc jockey Mr Tony Fenton.
The only consortium which expressed an interest in a multi-cultural service last year was a group called Metro Éireann based on North Circular Road. Led by journalist Mr Chinedu Onyejelem, it promised "a unique blend of music, art, news and information for the rich multi-cultural make-up of Dublin".