Bob Geldof's €2.5 million Power FM consortium has failed in its bid to secure the new South-Eastern radio licence.

The nod has been given instead to Beat 101, a joint venture involving U2 manager Paul McGuinness, Mean Fiddler supremo Vince Power and the existing WLR-FM.

Although sharing "non-programming services" with Waterford Local Radio, the company is adamant that "No one voice will feature on both stations.

"In the current climate," a spokesman continues, "viability for a full service stand-alone regional radio station would be difficult to achieve."

Due on air in July 2003, Beat 101 will target the 15 to 24-year-old age group with a predominantly music-driven "youth" format.

It's a second disappointment for Geldof whose attempts to establish a music video channel in the late '90s, Atomic TV, fell foul of Sile de Valera.