Two cable television providers are taking the Government to court to block illegal deflector operators and to seek financial compensation for lost revenues.
The Irish Times has learned that the two companies, CMI and Princes Holdings, have both issued separate legal proceedings in the High Court against the State, the Minister for Public Enterprise, the Attorney General and the independent telecommunications regulator.
Cablelink, the Telecom Eireann subsidiary, has confirmed that its legal advisers are currently considering lodging a similar court action.
CMI director Mr Ray Doyle said yesterday the company has lodged a plenary summons as a "first step" in recouping damages for revenues lost as a result of the continuation of illegal deflector operators throughout the Republic. Princes Holdings director Mr Don Grainger said it was taking the action due to the Government's failure to implement the Wireless Telegraphy Act and to protect the exclusivity of its cable and MMDS licences.
The Government and the other named parties to the action will shortly receive formal notice of the action. It could take up to two years before the case will be heard.
A spokesman for the Department of Public Enterprise said he could not comment on any impending action until it had received formal notice.
The cable companies have long been threatening to take the Government to court to force it to honour the licences under which they operate. CMI and Princes Holdings have both retained independent consultants to evaluate the amount of monies lost to illegal operators over the years. They will then seek to recover those monies from the Government.
The Cable Communications Association of Ireland (CCAI), which includes Cablelink, CMI and Princes Holdings, has claimed there are up to 100 illegal operators in the Republic. The association is understood to have recently outlined its concerns to the Minister for Public Enterprise, Ms O'Rourke, and believes that it now has no option but to pursue the Government through the courts.
The CCAI maintains that under the terms of the licence, the Government has a legal obligation to ensure that no unlicensed operators are allowed in the Republic.
It also claims that the illegal deflectors are in breach of copyright law and the State's broadcasting and planning regulations.
Industry sources have suggested that many in the business had been holding off taking such a course, in the hope that the Government would move to resolve the matter. Some, however, now believe that the Government lacks the political will to close down the illegal operators, fearing a public backlash that could ultimately cause a general election.
The former minister, Mr Alan Dukes, had tried to resolve the controversy earlier this year, proposing licences for the illegal deflector groups. This, however, was never implemented.
The dispute is currently being considered by the recently appointed independent Telecommunications Regulator, Ms Etain Doyle. The regulator is understood to have appointed consultants to advise on policy for the advent of digital television which will also have an impact on the current television service providers.
