THE Department of Transport, Energy and Communications indicated last night that it was unperturbed by ESAT Digifone's warning that it may delay the introduction of the State's second mobile telephone service.

A spokesman for the Minister said: "As far as the Department is concerned, ESAT Digifone's launch is on target."

ESAT Digifone, which was awarded the State's second mobile telephone licence last October, indicated yesterday it that it may not be ready by the December 1st deadline it set itself earlier this year. A gathering of mobile telephone dealers was told that ESAT Digifone was currently 15 per cent off its target coverage.

The company said it would rather delay the start than go with an imperfect service. "We started as a small group with big vision, growing to become the largest private project ever undertaken in Ireland," it said in newspaper advertisements.

"ESAT Digifone will deliver," the company said. "But not until we're good. And ready."

A spokesman for the firm would not elaborate, saying the company had nothing further to add.