Injunction blocks offer to other companies

THE High Court has granted an interim injunction to Smart Telecom restraining the Communications Regulator from awarding the 3G licence to another firm.

Smart Mobile Ltd went to court after the offer for the fourth 3G licence was withdrawn by ComReg.

Ms Justice Mary Laffoy granted the short-term injunction saying she was satisfied there was a fairissue to be tried, and because of the background to the case the injunction should be for a short period only.

The regulator is now restrained from awarding the licence to any other party pending a further order of the High Court where the case will be mentioned next Thursday.

Counsel for Smart Mobile Ltd, Michael Cush SC told how in a letter to the company on Monday the Communications Regulator had said that Smart Mobile Ltd had failed to provide a performance bond in the form acceptable by the regulator.

The court heard that the €100m performance-related bond needed to be lodged with the regulator by January 30 last. Draft-performance guarantees from three leading and large commercial banks, who are underwriting the guarantees, were sent to the regulator.

According to chief operations officer with Smart, Ciaran Casey, there was a level of communication between the parties as to the terms of the performance bonds up to January 27, 2006.

Mr Casey in his affidavit said the drafts furnished to the regulator reflected what Smart Telecom understood would be acceptable.

The court heard if given reasonable opportunity Smart could meet ComRegs concerns or provide appropriate alternative arrangements agreeable to the Regulator.