MR Seamus Brennan, the Fianna Fail spokesman on communications, has criticised the response of the Minister for Communications, Mr Lowry, to Dail questions on British Telecom's decision to withdraw from the Telecom Eireann strategic alliance process. Mr Brennan said he did not accept Mr Lowry's explanation that British Telecom withdrew because it did not favour equity based alliances with national operators. British Telecom was "scared off" by ideological confusion in the Government, Mr Brennan said in a statement yesterday.

"With BT's withdrawal, the strategic alliance process has effectively collapsed as only one serious player remains in the race. You can't have a competition with one player, especially one that knows it now has the Government where it wants them," said Mr Brennan. Mr Brennan was referring to a consortium made up of the Dutch and Swedish state phone companies.