Two entrepreneurs who netted millions through the sale of their chain of mobile phone stores to O2 are re-entering the business. Mr Conor Headon and Mr Ronan Murphy sold the Cellular World group back in 1998 for a sum thought to be in the region of €10 million, but stayed on to manage the operation under an earn-out agreement which expired in 2001.

At the time, it was one of the major mobile phone outlets in the State, having expanded rapidly from its founding in 1990.

Now Mr Headon and Mr Murphy are opening Commercial Wireless to sell phones and provide after-sales backup. It will also look for business helping companies manage their mobile phone needs.

The establishment of Commercial Wireless comes just four months after the expiry of a non-compete clause in the Cellular World deal. The new group says it will have agencies for all the mobile phone manufacturers and networks, including O2.

Commenting on the decision to return to the mobile phone industry at a time when it is struggling for growth during a transition to next generation mobile, Mr Murphy said: "It's two years since we sold our former business and, in the meantime, the mobile phone industry has continued to grow at an extraordinary rate.

"We intend to devote much of our focus to targeting the SME market.

"We believe that, given our experience and the excellent team we have assembled at Commercial Wireless, we can provide a first-class service to companies that want to get the best out of their mobile phone resources."

The group has hired Mr Derek McDonald, who was general manager at Cellular World, as chief executive of the new group. Mr Maurice Healy, chief executive of telecoms and data distributor Calyx and former managing director of Alphyra, will be chairman.

Mr Murphy said the company would look to grow both organically and by acquisition. "We expect significant consolidation among dealers in the corporate market over the coming 12 months," he said.