The Broadcasting Commission of Ireland (BCI) has stepped in to resolve an acrimonious dispute between TV3 and RTÉ over the price the State-owned broadcaster charges for the use of its transmission network.

TV3 has accused RTÉ of discriminatory pricing and unfair competition because of the charges it imposes on TV3 compared to TG4. TV3 claims it is charged four to five times more for use of the transmission network than TG4.

Under a contract signed in 1998, TV3 pays RTÉ about €2.5 million annually for use of the transmission network. The privately owned broadcaster claims this charge is far in excess of that paid by TG4, which is linked to RTÉ. It also claims that, even though it pays more, it is only on 12 transmitters compared to about 80 for TG4.

RTÉ has so far strongly rejected any assertion that its pricing is discriminatory and has pointed out that when the original contract was signed TV3 executives did not register any protest.

TV3 chief executive Mr Rick Hetherington has described the terms of the contract as unfair and a major cause of TV3's failure to deliver a profit.

He has said the contract places TV3 at a major disadvantage to its competitors - RTÉ 1, Network 2 and TG4. Lawyers for TV3 have argued that, under EU law, providers of such services must charge all customers a similar rate and charges must be transparent to the market.

Yesterday a spokeswoman said the board of the BCI, following a meeting on Monday, had decided to facilitate discussions between the two parties. She said the BCI would attempt to resolve the problem by bringing the two sides together.

However, the board decided not to refer the matter to the Minister for Communications Mr Ahern for adjudication. The BCI is entitled under broadcasting legislation to ask the Minister to investigate issues like the transmission charge in a procedure known as a "Section 16 intervention", but it appears the BCI wants to try to solve the issue first.

TV3 has rejected the assertion that it must accept the blame for signing such a contract in 1998. TV3 chairman Mr James Morris recently said the Government persuaded the station to sign the contract because otherwise it would not have been on air on time.

Meanwhile, Dublin radio station Lite FM has earmarked a spend of €750,000 for marketing and advertising activity during 2003.