Meteor will not be in a position to introduce the State's third mobile phone network in time for the key Christmas market, the company confirmed yesterday.

The decision means Meteor will fail to cash in on seasonal demand for mobile phones.

Analysts greeted the announcement negatively which is likely to strengthen the dominant positions of the existing network operators, Esat Digifone and Eircell.

Ms Jemma Houlihan, analyst with ABN Amro, said it was "very disappointing" for Meteor as the company would now miss out on a slice of mobile phone sales put at 270,000 units over the Christmas period.

"The bulk of mobile phones are sold in the run-up to Christmas and so the company will miss out on a large chunk of annual sales. It is certainly good news for Eircom."

Mr Pete Quinn, Meteor's chief operating officer, said the firm had ambitions towards a pre-Christmas initiative but this was never considered essential to its success.

He said the company would launch in early 2001 with some 60 per cent national coverage and ahead of the March deadline imposed under its mobile licence conditions.

But Meteor's failure to achieve a Christmas launch is the latest in a series of setbacks for the mobile operator which is majority owned by the US telecoms operator, Western Wireless.

The award of a licence to Meteor was delayed by 18 months following court action taken by the unsuccessful British operator, Orange.

The Supreme Court ruled on the issue in May but the time delay enabled the two existing operators Esat Digifone and Eircell to build a dominant position in the marketplace.

Mobile penetration rates are already 51 per cent in the Republic and are likely to grow further over the Christmas period.

Early next year the regulator will issue four licences for third generation mobile telephony.

The company has also yet to appoint a chief executive. Mr Quinn said yesterday it was close to doing so.