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Court allows Esat Digifone appeal to go ahead

The licence was awarded in 1995 to Denis O'Brien's Esat Digifone
The licence was awarded in 1995 to Denis O'Brien's Esat Digifone

The Supreme Court today cleared the way for two unsuccessful bidders to proceed with actions challenging the award of the licence to Esat Digifone.

The two bidders were Comcast International Holdings and Persona Digital Telephony.

Six other bidders competed for Ireland's second mobile phone licence which businessman Denis O'Brien's firm was awarded in 1995.

In 2001, two of those bidders - Persona Digital and the Comcast Group, which included businessman Declan Ganley - began proceedings against the State, Esat Digifone and its former chairman Denis O'Brien.

The companies were seeking millions of euro in damages.

The State then secured High Court orders stopping the case on grounds of inordinate and inexcusable delay. But this was appealed and lawyers for the companies argued they could not have taken the cases without the conclusion of the Moriarty Tribunal investigations.

The consortia have alleged fraud, conspiracy, deceit, corruption in relation to the mobile licence award.

Persona's Tony Boyle said that he welcomes the Supreme Court's decision and awaits the full details of the report, which Persona will study carefully.

The Moriarty Tribunal found that the former Communications Minister Michael Lowry assisted businessman Denis O'Brien in acquiring the licence.

Former Communications Minister Michael Lowry has welcomed the Supreme Court decision, saying a court of law is the proper forum to critically probe the 1995 mobile licence award process.

In a statement this evening, Denis O'Brien said that he will fully and vigorously defend all relevant allegations made in relation to the licence competition process.

Today the Chief Justice, Ms Justice Susan Denham, said the court would allow the appeals and give its reasons in a written judgment later.