Ulster Television's surprise £31 million bid for County Media, which owns 96FM and 103 FM in Cork, is likely to have a profound effect on the Irish radio sector, no matter what the outcome.

The bid has forced the Independent Radio and Television Commision (IRTC), which oversees the local radio sector, to take a long, hard look at its existing policy on the ownership of local stations.

UTV wants to take over County Media, but under the IRTC's current policy no existing media operator can own over 27 per cent of a second station, while no single company or individual is allowed to own more than 46 per cent of a station. If the deal is approved by the IRTC, this will almost certainly mean a change of policy, confirms chief executive Michael O'Keeffe. However, he says that there is nothing to prevent that happening, as the Radio and Television Act contains no rules on the matter.

O'Keeffe says that the commission's existing policy is guided by some broad principles. "No one individual or company should be a majority shareholder, which has ensured a certain diversity of voices in the radio market," he says. "This is not to suggest that one individual would go crazy and do things he shouldn't do, but there are other safeguards."

UTV has argued that these safeguards are sufficient, says O'Keeffe, and this is what the IRTC have to consider. They are expected to do so at the end of this month.

Scott Williams, station manager at Lite FM, points out that all of the three shortlisted bids for the new Cork licence involve media operators, so something will have to change. "I think it's a watershed time, no matter what happens," he says.