* Request prolongs uncertainty over position of Sky Italia
* Battle over frequencies takes on political tone
By Giselda Vagnoni
ROME, Jan 19 (Reuters) - The Italian government has asked Italy's top administrative court, the Council of State, to review a planned tender competition for digital terrestrial broadcasting frequencies, a ministerial source said on Wednesday.
Sky Italia, a unit of News Corp which broadcasts by satellite, wants to move into terrestrial broadcasting in Italy but would initially offer only free television.
The renewed request to the Council after a similar move was rejected last month, prolongs uncertainty over whether Sky Italia can take part in the so-called "beauty contest" for the frequencies.
It also leaves open the timing of the tendering, which had been expected before the end of last year. The daily La Repubblica said the contest would be delayed until March at least.
"Industry Minister Paolo Romani has renewed his request for advice to the Council of State after an earlier one was dismissed last December", the official said.
He denied that the move was designed to hinder the participation of Sky Italia in the bidding.
"Romani is aiming for a transparent and clear bid procedure in order to avoid potential claims".
The request focuses on reciprocity conditions and seeks clarification on whether companies from non-EU countries can take part in the tendering.
POLITICAL BATTLE
Benedetto Della Vedova, a member of the centre-right FLI party which broke away from Berlusconi's government last year, has filed a formal request for clarification on the government's stance which will be discussed in parliament later on Wednesday.
Manoeuvering over the future of Italy's digital terrestrial broadcasting sector has been going on for months, pitting Mediaset, the broadcasting empire controlled by Prime Minister Silvio Berlusconi, against Sky Italia.
The battle has taken on an increasingly political tone as Berlusconi has come under growing pressure from judicial investigations into allegations of corruption and prostitution and speculation over an early election has grown.
Political rivals have long complained of Berlusconi's control of Mediaset, Italy's largest private broadcaster.
In July the European Commission gave Sky Italia approval to compete for frequencies, a move that is opposed by Mediaset, state-owned RAI and small broadcasters and which was criticised by Berlusconi's government at the time. Under the terms of the Commission's approval, it could not to start terrestrial pay TV services before 2015 -- four years later than under a previous deal. (Additional reporting by James Mackenzie; Editing by Greg Mahlich)