UTV and the UK radio company Capital Radio plc have declared their intention to bid for the next Dublin radio licence. The companies intend to introduce the well- known alternative rock service Xfm into the Dublin market.

Xfm currently operates in London where it has 559,000 listeners or five per cent reach.

The Broadcasting Commission of Ireland (BCI) has invited applications for two new Dublin licences: one for a multi-cultural service and one for an alternative rock service. Applications are due to be submitted to the BCI over the summer and oral hearings will be held in the autumn.

UTV and Capital Group plc are both prepared to invest in the project, although the precise sums involved have not been disclosed.

UTV said Xfm was the definitive alternative rock station in Europe and Xfm Dublin would provide an innovative guitar-led music station. The company pointed out that Xfm London has been available in Ireland via Sky Digital and NTL for some time.

Mr John McCann, chief executive of UTV, said: "Given UTV's expertise within Irish media and our specific understanding of the Dublin radio market, we believe that our proposition to introduce the definitive alternative rock brand Xfm to Dublin is sure to be a winner with local listeners."

Mr McCann said UTV and Capital Group could ensure financial "sustainability" for the station in a very competitive market. This is likely to be a key consideration when the BCI board considers the applications.