Business Irish

Sunday 17 December 2017

Ganley firm misses out as massive telecoms deal goes to rival

Declan Ganley. Photo: Damien Eagers
Declan Ganley. Photo: Damien Eagers
Donal O'Donovan

Donal O'Donovan

Businessman and political campaigner Declan Ganley has failed to block Mexican authorities awarding a massive telecoms contract to a rival.

Yesterday, Mexico declared a consortium backed by Morgan Stanley Infrastructure and the World Bank's International Finance Corporation, along with Mexico's Megacable and conglomerate Alfa's unit Axtel, as the winner of a tender to build and run a national wholesale mobile network.

The so-called Altan group was the only remaining bidder for the long-delayed project after a consortium led by Galway businessman Mr Ganley's Rivada networks was ruled out of the race earlier this month.

Last week, Rivada Networks filed papers with a federal court in the Mexican capital in an attempt to stop authorities from excluding the company from the race.

A spokesman said the firm had made applications to the court, including asking judges to delay the formal award of the contract to Altan, the only remaining bid, until a full hearing of the challenge can be heard.

Mexico's government has defended excluding Rivada from the process.

Yesterday, it ploughed ahead with the licensing, though the court case is continuing.

Authorities in Mexico had said Rivada Networks and Spectrum Frontier failed to meet the financial terms set down.

Rivada Networks insisted it had the required €50m security to underpin its submission, and that any issue with the bid was clerical rather than substantial.

While Rivada has complained about the process, Mexico insisted its tender process had met the "best international transparency practices".

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business