Telecoms firm Smart has been granted a short-term injunction preventing telecoms regulator ComReg from awarding a third-generation mobile licence to any other company.
Smart Mobile Ltd had gone to court after the offer for the country's fourth 3G licence had been withdrawn by ComReg.
Ms Justice Mary Laffoy said she was satisfied that there was a fair issue to be tried and because of the background the case the injunction should be for a short period only. ComReg cannot award 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, Michael Cush SC, said that in a letter to the company on Monday the regulator had said that Smart had failed to provide a performance bond in the form acceptable by the regulator and as a result it was not awarding the company the licence.
The court heard that the €100m performance-related bond had to be lodged with the regulator by close of business on January 30 last. Draft performance guarantees from three leading commercial banks underwriting the guarantees were forwarded to ComReg.
According to chief operations officer with Smart Mobile, Ciaran Casey, there was a level of communication between the parties on the terms of the performance bonds up to January 27. Mr Casey, in his affidavit, said the drafts furnished to ComReg reflected what Smart Telecom understood would be acceptable.
ComReg, it was claimed, came back to Smart with 'significant extra requirements' in relation to the terms of the bonds over that weekend. Smart said it had no opportunity to meet these concerns, particularly as one of the banks was a Chinese bank which was closed from the Friday for Chinese new year.
Smart has already given the regulator €65m for a licence. The company has also raised a further €200m to build a new network of masts to carry signals. The regulator has so far refused to comment.
* Smart's shares fell by around 16% to 22 pence sterling on London's AIM.
