Former Esat chief executive Mr Denis O'Brien yesterday challenged the Oireachtas rail signalling inquiry to investigate what he claimed was an ESB "sweetheart deal" with British Telecom instead of focusing on his agreement with CI╔.
Mr O'Brien told the inquiry the ESB refused to talk to him about letting him use its countrywide infrastructure to build a telecommunications network.
The company entered a deal with British Telecom instead and the two went on to form the joint venture telecom firm, Ocean. "Maybe your committee should look into that," Mr O'Brien said.
CI╔ did talk to Mr O'Brien and they worked out a deal where he built his network along the railway lines.
Asked by the inquiry chairman, Mr Sean Doherty TD, whether this arrangement was a "sweetheart deal", meaning nobody else got a look-in, Mr O'Brien said the suggestion was "pejorative".
"It's absolutely disgraceful to even suggest it; if you wanted a headline, you've got it," said Mr O'Brien.
The exchange took place as Mr O'Brien began giving evidence to the inquiry which is examining why the £14 million mini-CTC rail signalling system, due to be installed two years ago, is still unfinished and is now likely to cost at least £50 million to put into operation.
The inquiry has heard that attempts to install cables for Esat at the same time as signalling cables may have added to delays and costs in the mini-CTC.
Mr O'Brien said the deal came in 1997 after years of frustration for his company which got the first independent telecommunications licence, allowing it compete with the Telecom ╔ireann monopoly.
He got a licence to run a limited service in 1994 but only after protracted difficulties because the Department of Public Enterprise was also in charge of Telecom ╔ireann.
"In sporting terms, they were referee and they owned the team, the stadium and the TV rights," Mr O'Brien said.
In 1997, when the Department's "referee" role was transferred to an independent regulator, the telecoms market fully opened up.
Mr O'Brien said that in January of that year he began to seriously look at laying a network of cables across the country.
He considered running the cables along the railway, canals, roads and even underwater and said if the ESB had entered into dialogue, that might have provided the cheapest option.
Mr O'Brien explained what he understood was the origin of a mystery document presented to the inquiry on Tuesday which suggested CI╔ was planning to link up with a telecom company as far back as 1994.
Mr O'Brien said he believed it came to him in 1995, not from CI╔ but from another company, Southwest Bell, with which he briefly considered doing business.
He said the document was not a detailed proposal and looked like something that was "put together in half an hour".
CI╔ witnesses could not explain where the document came from. Former chairman Mr Brian Joyce said it looked like the work of a "first-year commerce student".
Former head of programmes and projects at CI╔, Dr Ray Byrne, said it looked like the CI╔ logo had been copied on to it and did not appear to be on original company paper.