Byers accused of bias over 999 bids

The Government has been accused of mishandling a multi-billion-pound project to equip the emergency services with a new radio system, over claims that it is skewed in favour of operator mmO₂.

Stephen Byers' Department for Transport, Local Government and the Regions is to launch a competition to select a company to provide the fire service with a national communications system.

But already some telecoms operators are considering boycotting the £500m project because they believe they have little chance of winning.

Formerly BT Cellnet, mmO₂ won a £2.9bn deal to develop a new mobile network for the police service, called Airwave.

One rival, which asked to remain anonymous, said since mmO₂ would be able to piggyback the fire service network on Airwave: "We won't be able to compete on price."

Last month the National Audit Office criticised the Government's handling of the Airwave project, accusing it of failing to deliver a seamless network across all emergency services. It also said that if mmO₂, through Airwave, won other public radio contracts, then the police service would see no financial gain.

MmO₂'s Philip Stanfield, who has responsibility for Airwave, said: "We welcome the opportunity to compete for the fire service contract."

Originally, the fire service was to buy its radio equipment through regional contracts. NTL was selected as preferred bidder for the South-west, while Airwave was selected for the West Midlands and Shropshire.

The DTLR confirmed the contracts would now be scrapped, and shortlisted companies could be compensated. It denied the procurement would favour mmO₂. "The process will be a level playing field," said a spokesman.