Smart Telecom has been refused access to a third generation mobile phone licence by the High Court today.
Mr Justice Peter Kelly ruled that the telecoms operator should not be allowed take up the licence and that the Communications Regulator was correct to withdraw the 3G licence from Smart.
Smart had been awarded the licence, which allows users to access the internet over their mobiles, late last year but the regulator withdrew the offer of the licence because of issues surrounding a €100m bond to be paid by Smart.
This decision was challenged by Smart in the High Court.
Also today Smart shareholders have voted to accept a takeover approach for the company from its 20 per cent shareholder, Brendan Murtagh, through his vehicle Bidco.
The takeover gives Mr Murtagh control of Smart's network and 17,000 broadband customers.
During the meeting, Smart's acting chief executive Ciaran Casey apologised to shareholders for losses of service in recent weeks.
Under the bid, Bidco will assume all of Smarts liabilities and in return Smart shareholders will get ten per cent of Bidco. Smart's liabilities are estimated at over €40 million.
Acting chief executive at Smart Telecom, Ciaran Casey, apologised to shareholders at today's EGM for any loss of service that they have experienced in recent weeks.
More than 40,000 Smart residential phone customers were recently disconnected because the company owned Eircom €4 million.