The High Court yesterday gave the telecoms regulator the go-ahead to implement a directive setting out a new penalty regime against Eircom. The penalties relate to Eircom's failure to meet deadlines in providing leased lines for other telecoms service providers.

Eircom had secured a stay of the directive from the High Court on September 7th during a successful application for leave to challenge it. The directive removed a cap on penalties for delays in providing leased lines and altered the method of calculating these penalties. On Thursday, Eircom applied to Mr Justice Kelly to continue the stay pending the full hearing of the challenge. Lawyers for the Office of the Director of Telecommunications Regulation, supported by Esat Telecom, Ocean Communications and Esat Net, sought to have the stay lifted.

When the hearing resumed yesterday, Mr Justice Kelly told the sides he could hear the action on November 28th and asked whether counsel wished to proceed with the hearing in light of that date.

After discussions between the parties, Mr Paul Gallagher SC, for Eircom, said that, having regard to the early date offered for the full hearing and an agreement between the parties as to how matters might proceed in the interim, the stay might be vacated.

Mr Justice Kelly lifted the stay and confirmed November 28th as the date for the full hearing.