The monopoly Fiji Television Limited has withdrawn its application for an exclusive 10-year licence.
The Commerce Commission says Fiji TV now feels it is improper and in appropriate to pursue exclusivity.
In its intial determination, the Commission had rejected the company's application after overwhelming public objections.
But in return for the withdrawal of the application, the Commerce Commission says it will ask the government to set conditions for the entry of any new company into the field.
This will require it to provide 100 percent signal coverage, something which Fiji TV does not yet do, and to produce local programmes and news.