Broadnet Ireland, the telecommunication company headed by Galway-based entrepreneur Mr Declan Ganley, may take further legal action against the telecoms regulator, Ms Etain Doyle, following a decision yesterday to award a fourth broadband wireless licence to Eircom.

Esat Telecom, Formus Communications and Princes Holdings already hold 10-year wireless broadband licences which enable operators to provide high-speed data connection and Internet services without using Eircom's local network.

However, a decision to award Eircom the fourth wireless broadband licence was challenged by Broadnet Ireland in the High Court earlier this year.

The company alleged "objective bias" against the regulator.

This action was settled in May when it was agreed by all parties that Broadnet and Eircom's applications be reviewed by an expert evaluation committee.

Ms Doyle announced yesterday she would make the necessary arrangements to issue the licence to Eircom following the decision by the committee that the rankings of the companies in the original contest should not be changed.

Speaking to the The Irish Times Mr Ganley said he was "astounded" by the decision to award the licence to Eircom rather than Broadnet and he was reviewing all options including taking a case to the European Court.

He said a decision to award the licence to an incumbent telecoms operator did not promote competition because Eircom already owned the fixed line local loop.

Legal action initiated last year by Broadnet Ireland delayed the award of broadband licences by almost a year and cost operators millions of pounds in revenue.

However, it is unlikely to further delay the roll-out of wireless broadband services as three licences have already been issued and legislation introduced in March prevents the automatic hold-up of the telecoms regulator's decision.

A spokesman for Eircom said last night he welcomed the result of the review and that the company had won because it had the best submission.