Montgomery is thought to be drawing up a proposal that would see the creation of a pay-TV business to replace ITV Digital, which had its terrestrial digital licence revoked by the ITC earlier this month when it collapsed.
Montgomery's consortium, backed by US asset finance company Babcock & Brown and advised by media experts Spectrum Strategy Consultants, is understood to be among 10 parties bidding for the licence.
It is understood to be up against competition from the BBC, ITV, Channel 4, NTL Broadcast, Crown Castle, Sirius Television, Scottish call centre MGT and a technology business linked to Alcatel called Third Space.
Montgomery became well known in the mid-90s when he launched Live TV with Kelvin MacKenzie. The channel was disbanded in the late 90s after becoming renowned for broadcasting topless darts and weather forecasts in Norwegian.
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