The Iraqi Communications Ministry awarded three mobile phone licences to firms in the Middle East yesterday, ending speculation that Irish investors would secure one of the licences.

Two Kuwaiti telecoms companies and an Egyptian firm were awarded the potentially lucrative regional phone licences to build and run three new mobile networks in areas within Iraq.

One of the winning bidders, Kuwait firm MTC, was advised during the licence competition by the Dublin-based telecoms consultancy, Hardiman Telecommunications. But two rival bids, backed by two Irish investors, were unsuccessful in the contest.

It is understood a bid by a consortium led by the US firm Watco and backed by the Irish telecoms entrepreneur, Mr Denis O'Brien, was unsuccessful in the contest.

Mr O'Brien, who founded the Irish telecoms firm Esat and later sold it to British Telecom, is currently developing a successful mobile phone group in the Caribbean called Digicel. It is believed Digicel offered Watco some technical and business support.

Mr Declan Ganley, a Galway-based technology entrepreneur, said yesterday a consortium which he had helped put together had submitted a licence application. He would not reveal details of the participants but said it had applied to build a network based on the US technology standard, CDMA.

All three of the successful consortiums announced yesterday have Arab and Iraqi members and will use the GSM mobile technology standard rather than the US technology standard, CDMA.

The adoption of GSM technology should enable Iraqis to use their mobiles when they travel to neighbouring states.