TELECOMMUNICATIONS FIRM Motorola is being sued for €90 million over alleged breach of agreements related to the provision of broadband services in Ireland.
The proceedings were transferred yesterday to the Commercial Court by Mr Justice Peter Kelly. He returned the matter to June.
The case has been brought by IBB Internet Services Ltd and Irish Broadband Internet Services Ltd (trading as Imagine Networks and Imagine Communications Group Ltd), all with addresses at Barrow Street, Dublin, against Motorola. The first two plaintiffs are wholly owned subsidiaries of Imagine.
Paul Sreenan SC for the plaintiffs said they had contracted Motorola in 2009 to provide an end- to-end broadband network nationwide in Ireland, using WiMax technology.
His side contended there were significant failures by the defendant in meeting its obligations. The plaintiffs had suffered losses of €17 million to date, with the estimated total losses to the end of 2013 expected to be some €90 million.
It is claimed the alleged failures led to the plaintiffs being unable to meet known customer demand or to provide a network of the standard and specification contracted for.
The plaintiffs say their business plans envisaged 234 base stations would be installed by the end of 2010 but just 125 stations had been installed to date.
The delays had exhausted the plaintiffs’ working capital, it is claimed, and they are now restructuring their business.
Paul Gardiner SC for Motorola, said it was contending it had abided by its contract.
