ESAT Digifone was awarded the second mobile phone licence in November 1995. Up against some of the biggest names in the telecommunications world, Esat Digifone emerged as the clear winner, according to the then Minister for Communications, Mr Lowry.
The two main shareholders in Esat Digifone are Esat Telecom Holdings and the Norwegian state company Telenor, which both own, 40 per cent of the company.
Esat Telecom is the telecommunications company run by Mr Denis O'Brien. It competes with Telecom Eireann for a slice of the lucrative commercial market. Mr O'Brien is also the majority shareholder in the radio station, 98FM.
The remaining 20 per cent was subsequently bought by Mr Dermot Desmond's investment company, International Investment, and Underwriting. When the licence was signed, an IIU spokesman said Mr Desmond himself was the beneficial owner of these shares.
The losing consortia objected to the handling of the sale of the licence and called for disclosure on the decision-making process.
Mr Lowry was also questioned in the Dail. Among the contentious areas raised were the price at which the licence was auctioned - Mr Lowry agreed a £15 million cap with the EU Commission - and the decision-making process. The Opposition also asked how a significant shareholder - IIU - was allowed to get on board at a late stage. Mr Lowry strongly defended the decision, saying no "political or extraneous" considerations had come into play.
Last April Mr Lowry decided to call a media briefing after what he said was "a six-month campaign of speculation and innuendo" over the awarding of the licence. Senior Department officials told the media that the decision-making process was "squeaky clean".
The Department secretary, Mr John Loughrey, said the examination would "stand up to any scrutiny". The Department also revealed the general factors used to rank the bidders, including the credibility of their business plans, the quality of their technology, plans for charges to users and other issues.
None of the unsuccessful bidders took the option of seeking a judicial review, although one did object to the EU Commission.
Esat Digifone plans to begin its service early next year. It will be a GSM network, like Eircell's "087" phone service.
