Three narrowband and four broadband telecommunications licences are to be awarded by the end of July following the settlement yesterday of High Court proceedings. The move will clear the way for more competition in the telecoms market as it enables companies to provide high-speed voice and data services in a more cost-effective manner, compared to traditional wired infrastructure.
The action was taken against the Office of the Director of Telecommunications Regulation (ODTR) by Broadnet Ireland Ltd, which had been an unsuccessful applicant for a broadband licence but is now to have a second chance. As part of the settlement, Broadnet's appeal against the proposal to refuse it a broadband licence is to be allowed on certain terms, the effect of which is that the fourth broadband licence will be awarded to either Broadnet or Eircom following a re-evaluation of their licence applications, to be completed by July. Broadnet, which is partly owned by businessman Mr Declan Ganley, holds a number of broadband licences in Europe.
An Eircom spokesman said last night that the company was "extremely concerned" at the way the matter had been handled. Broadnet had alleged apparent bias in favour of Eircom in the competition resulting in the proposed award of four broadband licences.
Yesterday, the regulator, Ms Etain Doyle, said she was satisfied the competition was run fairly. However, she had learned only on April 6th last that five members of the office's steering group evaluating the competition hold, or held directly or in trust, shares in Eircom, purchased at the flotation last summer.
Broadnet had taken two sets of legal proceedings after the regulator announced last September, following a "beauty contest" evaluation process for FWPMA (Fixed Wireless Point to Multipoint Access) licences, that Eircom, Esat Telecom, Formus Communications Ireland Ltd and Princes Holdings Ltd were ranked highest for the four broadband licences.
The regulator also announced that she proposed to offer three narrowband FWPMA licences to Eircom, PHL and Esat Telecom. Broadnet challenged the refusal of a licence to it both in judicial review proceedings and in a High Court appeal.
In the judicial review action, Broadnet alleged apparent bias by the regulator in favour of Eircom and sought orders quashing the proposal to refuse it a licence and a declaration that the competition which resulted in the licence awards was void.
In light of the Broadnet action, Formus also initiated legal proceedings but later withdrew its application for an order restraining the award of the narrowband licences. Formus claimed it was a reluctant litigant but complained that, as the Broadnet proceedings had prevented the issuing of broadband licences, it would be under a disadvantage if the narrowband licences were issued prior to the determination of the Broadnet action.
Because of the legal actions, no licences have been issued and the regulator and successful licence applicants claimed to have incurred multi-million pound losses as a result.
Last month, Broadnet's judicial review proceedings were effectively frozen after Ms Justice Laffoy ruled the action could not proceed unless and until Broadnet gave an undertaking to pay, in the event of it losing the action, the estimated multi-million pound damages which the regulator and successful licence applicants claimed to have suffered as a result of the case.
Meanwhile, Broadnet's High Court appeal proceedings continued and yesterday Ms Justice Laffoy was due to hold a hearing to determine the scope of that appeal. However, Mr Donal O'Donnell SC, with Mr Paul Sreenan SC, for the regulator, said the proceedings had been settled and all parties were agreed on the settlement.
He sought a number of orders which were granted by Ms Justice Laffoy. She directed that Broadnet's judicial review proceedings be struck out with no order for costs.
She also directed Broadnet's appeal be allowed on terms not read out in court and made no order for the costs of the appeal.
