Television stationsTV3 and Setanta have reduced their stakes in the Digital Terrestrial Television (DTT) commercial consortium OneVision.

The group, which is in talks to run the commercial side of the new state-owned platform, is now being driven by Eircom and British transmission company Arqiva.

OneVision is understood to be planning to invest between €20 million and €30 million in the project.

The group began negotiations with RTE and the Broadcasting Commission of Ireland (BCI) in May after the original consortium, Boxer, pulled out.

Eircom, Arqiva, TV3 and Setanta were to be equal partners in OneVision. However, it is understood that Eircom and Arqiva will each hold 40 per cent of the company while TV3 and Setanta will each hold 10 per cent. This is subject to approval from the BCI.

RTE has been mandated to build the new network for the digital free-to-air signal at a cost of more than €100 million. The old analogue free-to-air service received by aerial has to be switched off by 2012 by order of the EU. DTT’s popularity among Irish consumers depends on commercial packages being available, as well as the public service stations such as RTEO ne and RTE Two.

OneVision is in talks with the BCI about its contract for the commercial service and with RTE regarding transmission on the new network. The changed financial environment has meant that the business proposition behind the DTT project is weakened.

However, industry sources believe that DTT still provides a very attractive commercial opportunity for the likes of Eircom, as it would allow them to offer ‘triple play’ packages comprising broadband, phone and digital television.

Minister for Communications Eamon Ryan is confident that the project will proceed, and a launch is expected to take place in a year’s time.

This stage of the talks has been described as ‘‘critical’’ by sources close to the process. Other insiders said there were still obstacles to an agreement.

The sticking points include the €10 million transmission fees being charged by RTE and the amount of a security guarantee RTE wants from the commercial operator. RTE wants to ensure that a commercial player is fully committed to the DTT project before continuing with the investment.

It will have spent €40 million on DTT by June next year.