ComReg withdraws Smart's 3G licence offer

Communications regulator ComReg has withdrawn the offer of the country's fourth 3G licence, awarded last November to Smart Telecom.

In a statement, Smart says it was notified last night by ComReg that it believed the company had failed to meet certain conditions of its original offer. It said accordingly, that it no longer intends to award the licence to Smart.

"The company strongly refutes the grounds on which ComReg purports to take this action and it has received legal advice throughout the process which supports this view," this morning's statement from Smart says.

"As such the company is initiating legal proceedings to enforce the award of the licence," it added

Smart says it has approached talks with ComReg in an open and constructive manner. It says it is therefore 'surprised and disappointed' by the 'unlawful' actions of ComReg. Smart says it has given ComReg €56.7m for the 3G licence.

It says that since it accepted the 3G licence, it has negotiated a €200m mobile network build, while it has also secured the services of major players for that build. The company has arranged €100m performance bonds from global banks to underpin that build and has also provided ComReg with financial guarantees.

The 3G licence provides for a minimum of 53% coverage to be achieved by 2011. This is equivalent to coverage of the five major cities of Ireland. Vodafone, O2 and 3 Ireland hold the existing licences.