An action in which Eircom had challenged a directive of the telecoms regulator setting out a new penalty regime for Eircom's failure to meet deadlines in providing leased lines to rivals has been settled. The directive has since been replaced.

On September 7th, Eircom secured a stay from the High Court on implementation of the original directive, which removed a cap on penalties for delays in providing leased licences and altered the method of calculating penalties. Lawyers for the Officer of the Director of Telecommunications Regulation, Esat Telecom, Ocean Communications and Esat Net opposed the stay.

The High Court lifted the stay on October 13th in light of a November date having been set for the trial of the full action and agreement between the sides as to how matters might proceed in the interim.

The full action was listed for hearing yesterday and had been expected to last two weeks. When the case was called, Mr Justice Kelly was told by Mr Peter Charleton SC for Eircom, the action could be struck out with no order.